Shopping For Financial Products in South Africa

Vertical Deep Dive Finance
South Africa
Methodology - VDD Finance South Africa

Target group: Internet users in South Africa, 18 years and older Sample: N=1,000 Internet users Methodology:
Online Questionnaire
Representative weighting by age, gender, education, income, frequency of online access, frequency of online purchase, usage of YouTube Period of analysis: Fieldwork: from October 21st November 4th, 2011
Final report: November 18th, 2011

Research company: TNS Infratest
Source: Google, Vertical Deep Dive Financial : May 2012 |
Methodology SRS Telephone Survey

Target group: General population in South Africa, 18 years and older Sample: n=703 Internet users Methodology:
CATI (Computer Aided Telephone Interviews)

Collection of figures about the local internet penetration Collection of representative figures for the online population in terms of: age, gender, education, frequency of online access, frequency of online purchase, usage of YouTube Period of fieldwork: February 15th April 28th, 2010
Research company: TNS Infratest
Weighting of the data

Online surveys are usually conducted via online access panels. This is a widely accepted method and TNS Germany has sound experience with online surveys in every respect. Weve learned that respondents in online surveys can be seen as lead users, reflecting media- and internet usage very well. However, respondents on panels tend to use the internet quite intensively and are usually media inclined in general and internet inclined in particular. Therefore we applied a weighting process based on our representative offline telephone survey in order to minimize this effect.
Having applied the weighting procedure our survey is representative for the South African online population aged 18+ which reflects 11% of the South African population aged 18+
Analysis of the data

Our study reflects 11% of the South African population aged 18+ or 100% of the South Africans with internet access aged 18+
SRS Telephone Survey
VDD Finance South Africa
South African population aged 18+
South African onliners aged 18+
South African onliners aged 18+
Relevant finance products for South Africa

The following report provides insights on the purchase and research behaviour for the following products out of the finance vertical.
Insurance Products
Home insurance
Other Financial Products
Current account/ Cheque account
Savings account
Life insurance
Credit card
Car insurance
Personal loan
Travel insurance
Home loan/ Bond/ Mortgage
Financial products Ownership and Purchase
Awareness of financial institutions

FNB, Capitec and ABSA are the most recognized banks in South Africa
Awareness of financial institutions All respondents

FNB/First National Bank Capitec ABSA/Bankfin Standard Bank/Stannic Old Mutual Discovery Nedbank/Peoples Bank Liberty Life SA Home Loans Sanlam Outsurance Hollard Insurance Post Bank/Post Office Wesbank Auto & General Investec First for Women Insurance
95% 95% 94% 93% 92% 91% 90% 90% 88% 88% 88% 86% 85% 85% 84% 84% 84%
African Bank Momentum Barclays Santam Dial Direct Insurance Virgin Money Budget Insurance Metropolitan Woolworths Financial Services Go Banking (Pick 'n Pay) Miway Insurance MTN Banking RMB/Rand Merchant Bank/Origin Mercantile Lisbon SA Eagle BOE/Board of Executors Edcon Financial Services Standard Chartered
83% 83% 83% 81% 80% 78% 77% 76% 67% 66% 64% 59% 52% 51% 48% 44% 41% 34%
Q6: Which of the following financial institutions, if any, are you aware of or have you ever heard of? Base (weighted): All respondents n=1,000; answer categories Other and None/Dont know not shown
Ownership and purchase of financial products

Savings and current accounts as well as credit cards are the most commonly owned and acquired financial products
Ownership and purchase of financial products All respondents

Ownership financial products Savings account Current account Credit card Life insurance Car insurance Home loan/Bond/Mortgage Personal loan Home insurance Travel insurance
1% 45% 34% 30% 29% 28% 24% 62% 61%
Purchase financial products (past 12 months)
33% 29% 17% 11% 13% 9% 18% 9% 1%

Overall 70% of the South African onliners made a purchase in the finance vertical in the past 12 months.
South African onliners own on average 4 financial products - 1 insurance and 3 other financial products
Q7: Which of the following financial products, if any, do you currently personally own, at each of these financial institutions? Q8a: And which of the following financial products, if any, have you acquired for your own personal use in the past 12 months, for each of these financial institutions? Base (weighted): All respondents n=1,000
Ownership / purchase of financial products - Banks

Product holding is highest at FNB with internet users having acquired more products from FNB than from any other bank
Ownership and purchase of financial products All respondents / Purchasers of financial products
FNB/First National Bank ABSA/Bankfin Standard Bank/Stannic Nedbank/Peoples Bank Old Mutual Discovery Sanlam Capitec Liberty Life Outsurance
41% 34% 27% 19% 22% 19% 9% 21% 41%
African Bank Woolworths Financial Services Momentum Wesbank Metropolitan Auto & General Hollard Insurance Santam SA Home Loans Edcon Financial Services products acquired in past 12 months
11% 11% 11% 9% 10% 4% 8% 5% 8% 3% 7% 5% 7% 4% 7% 4% 6% 4% 6% 3%
32%
18% 11% 7% 17% 15% 16% 6% 15%
12% 9%
products currently owned at
Q7: Which of the following financial products, if any, do you currently personally own, at each of these financial institutions? Q8a: And which of the following financial products, if any, have you acquired for your own personal use in the past 12 months, for each of the following financial institutions? Base (weighted): All respondents n=1,000; Purchasers of financial product/s in the past 12 months n=701
10
Repertoire of past 12 m. financial product application

Highest cross selling potential for current and savings accounts
Insurances Products acquired in past 12 months
in % Life insurance Car insurance Home insurance Travel insurance (n=7) !** 58 63 Savings account
Other financial products

Current account Credit card Home loan/ Bond Personal loan
(n=110) 100 33
(n=129) 28 100
(n=87) 28 54
(n=330) 17 16
(n=285) 21 20
(n=170) 28 25
(n=88) 45 32
(n=181) 25 19
Life insurance
Car insurance Home insurance Travel insurance Savings account Current account Credit card Home loan/Bond/Mortgage Personal loan
22
4 51 53 44 36 41
36
4 40 45 33 21 27
100
8 40 52 48 38 34
97
100 61 89 72 52 55
11
1 100 27 23 9 24
16
2 32 100 36 18 31
25
3 45 60 100 28 38
37
4 36 60 55 100 37
16
2 44 49 36 18 100
Read: Of Internet users who acquired a current account in the past 12 months, 32% also acquired a savings account, 36% also acquired a credit card, 31% also acquired a personal loan, etc = highest cross-usage = second highest cross-usage !** very low incidence n<30
Q8a: And which of the following financial products, if any, have you acquired for your own personal use in the past 12 months, for each of the following financial institutions? Base (weighted): Purchasers of financial product/s in the past 12 months n=701
11
Financial product application Top 10

In general South African onliners tend to acquire products at more than one bank
Financial institutions for products acquired in past 12 months
in % FNB Nedbank Standard Bank Capitec Discovery African Bank Old Mutual Outsurance Sanlam ABSA/Bankfin
FNB
Nedbank
Standard Bank (n=132) 20 18 100 13 17 13 17 18 10 23
Capitec
Discovery
African Bank (n=75) 37 19 22 33 7 100 17 10 15 29
Old Mutual Outsurance (n=65) !* 35 17 35 28 14 20 100 27 18 48 (n=61) !* 46 31 40 11 20 13 28 100 21 44
Sanlam (n=51) !* 32 48 26 21 19 22 23 25 100 41
ABSA/Bank fin (n=189) 22 15 16 15 7 11 16 14 11 100
(n=240) 100 10 11 13 8 12 9 12 7 17
(n=134) 18 100 18 22 17 11 8 14 18 21
(n=112) 29 27 15 100 16 22 16 6 10 25
(n=79) 25 29 29 22 100 7 12 15 12 16
Read: Of Internet users who acquired a financial product from FNB in the past 12 months, 10% also acquired a financial product from Nedbank, etc = highest cross-usage = second highest cross-usage !* low incidence n<70
Q8a: And which of the following financial products, if any, have you acquired for your own personal use in the past 12 months, for each of the following financial institutions? Base (weighted): Purchasers of financial product/s in the past 12 months n=701
12
Method of application / acquiring

Online is on 3rd position as method to apply for financial products face-to-face is the most common method
Application method Purchasers of financial products in the past 12 months

Face to Face By phone Online By email Other
74% 24% 17% 7% 5% 3% 1% 7%
By post
By fax Dont know / not sure
Q12: Now thinking about the products that you acquired or applied for in the past 12 months, how did you acquire or apply for each product? Base (weighted): Purchasers of financial products in the past 12 months n=701
13
Method of application / acquiring

Past 12 month application method differed, depending on the financial product - online applications highest for credit cards and personal loans
Insurances
Home insurance Life insurance Car insurance Travel insurance Current account
Other financial products

Savings account Credit card Personal loan Home loan/ Bond/ Mortgage
Method
in % Online By phone By email By fax (n=87) 11 42 2 2 12 0 4 (n=110) 3 20 9 (n=129) 16 55 9 (n=7) !** 3 12 9 22 (n=285) 9 4 3 2 3 (n=330) 9 2 0 (n=170) 19 22 3 0 1 2 (n=181) 19 15 1 (n=88) 8 9 18 0 1
By post
Face to Face Other Dont know / not sure
24
7 6
57
12 6
14
2 1
57
3
76
2 5
81
2 4
55
0 5
63
1 3
53
8 4
= most popular method of application
= second most popular method of application
!** very low incidence<30
Q12: Now thinking about the products that you acquired or applied for in the past 12 months, how did you acquire or apply for each product? Base (weighted): Purchasers of financial products in the past 12 months
14
Factors influencing decision to apply/acquire

Purchase decisions were mainly influenced by convenience, trust (customer loyalty + brand reputation) as well as competitive prices
Factors influencing decision to apply/acquire - total Purchasers of financial products in past 12 months
You are a customer of this bank, it was convenient
45% 38% 32% 28% 27% 21% 14% 11% 11% 8%
The price of the product/fees

The reputation of the bank/financial provider The product features offered / benefits received The advice of a friend/relative/spouse/acquaintance The advice of a consultant of this bank/financial provider The advice of an Independent Financial Advisor (IFA) Other The advice of an insurance broker
None/Dont know
Q11: When you purchased these financial products, which of the following factors influenced your decision to acquire this product through this particular provider / bank? Base (weighted): Purchasers of financial products in the past 12 months n=701
15
Source of awareness / research

Apart from Word-of-Mouth and TV the internet is an important source for creating awareness and supporting research for financial products: 38% of the purchasers researched online prior to purchase
Source of awareness / research Purchasers of financial products in the past 12 months

I was already client - product recommended by consultant TV Internet Saw the product advertised in the branch Newspaper / Magazine Independent Financial Advisor Radio Insurance broker Billboard
23% 14% 8% 7% 12% 4% 9% 4% 7% 14% 7% 9% 26% 26% 24% 45% 33% 12%
58% 56%
38% 34% 34%
20% 18%
16%
11%
other mentions
first mentioned
Q9: Thinking specifically about the financial products that you ve acquired or applied for in the past 12 months, where did you first hear or find out about each product you purchased / applied for in the last 12 months? Q10: Where else did you hear about, find out about or research each product you purchased / applied for in the last 12 months? Base (weighted): Purchasers of financial product/s in the past 12 months n=701; answer categories Other and Dont know/cant remember" not shown
16
Source of awareness traditional media

TV ads are the most commonly cited traditional media source creating awareness online sources on position 2 already ahead of print

TV
23%
33%
56%
Internet
14%
24%
38%
Newspaper / magazines
7%
26%
34%
Radio
4% 14%
18%
Billboard
4% 7% 11%
first mentioned
other mentions
17
Source of awareness non-traditional media

Apart from in-branch consultancy the internet plays an important role among non-traditional media for creating awareness

Client and recommended through consultants
45%
12%
58%
Internet
14%
24%
38%
Saw the product advertised in the branch
8%
26%
34%
Independent Financial Advisor
12%
9%
20%
Insurance broker
9%
7% 16%
other mentions
first mentioned
18
Online as a source of awareness / research

4 out of 10 credit card purchasers of the last 12 months did first hear or research about these products online
Online as a source of awareness / research Purchasers of financial products in the past 12 months
Credit Card (n=170) Car insurance (n=129) Personal Loan (n=181) Current account (n=285) Savings Account (n=330) Home Loan / Bond / Mortgage (n=88) Home insurance (n=87) Travel insurance (n=7) !**
7% 11%
!** very low incidence n<30
43% 32% 32% 26% 23% 23% 19%
Life insurance (n=110)
Q9: Thinking specifically about the financial products that you ve acquired or applied for in the past 12 months, where did you first hear or find out about each product you purchased / applied for in the last 12 months? Q10: Where else did you hear about, find out about or research each product you purchased / applied for in the last 12 months? Base (weighted): Purchasers of financial product/s in the past 12 months; answer categories Other and Dont know" not shown
19
Source of awareness insurances

Importance of online for creating awareness and supporting research differs per insurance product strongest for car and home insurances

Life insurance
Recommendation by consultants
29% 20% 8%37% 8% 28%
Car insurance
22% 5% 27%
Home insurance
36% 7% 43%
Travel insurance!**
6% 5% 11% 0% 0% 0%22%
Insurance broker
Independent Financial Advisor Newspaper / magazinet Product advertised in a branch TV Radio Internet
11% 2% 13% 1% 5% 6% 5% 15% 20% 1% 12% 13% 26% 20%
19% 9%28% 6% 10% 16% 5% 5% 10% 1% 2% 3%
11% 17% 14% 17%
28% 31%
22%
6% 9%15% 5% 0% 5% 0% 52% 52% 6% 6% 11% 22% 6% 28%
3% 13%16% 2% 21% 2% 5% 7% 1% 5% 7%
23%
46%
19% 13% 32% 0% 6% 6%
52%
6% 57%
1% 11% 12% 15% 17% 0%4% 4%
32%
5% 14% 19% 2% 2% 4%
Billboard0%1% 1%
First mentioned
Other mentions
Q9: Thinking specifically about the financial products that you ve acquired or applied for in the past 12 months, where did you first hear or find out about each product you purchased / applied for in the last 12 months? Q10: Where else did you hear about, find out about or research each product you purchased / applied for in the last 12 months? Base (weighted): Purchasers of financial product in the past 12 months Life insurance n=110, car insurance n=129 , home insurance n=87, travel insurance n=7; answer category Other not shown; !** very low incidence n<30
20
Source of awareness other financial products

Apart from personal in-branch consultancy the internet is the top information source on credit cards and personal loans

Current account
Recommendation by consultants
43% 5% 48%
Savings account
30% 2% 2%4% 4% 2%6% 3% 23% 8% 21% 21% 2% 10% 12% 6%16% 23% 4% 3%7% 9% 38%
Credit card
48% 0% 3% 3% 8%11% 20% 10% 58%
Personal loan
45% 3% 3% 6% 8%11% 19% 6% 12% 18% 5% 22% 10% 55%
Home loan
49% 1% 6% 7% 21% 1% 19% 1% 23% 16%
65%
2% Insurance broker0%2%
Independent Financial Advisor Newspaper / magazinet Product advertised in a branch TV Radio Internet Billboard
5% 7% 13% 2% 16% 18% 6% 22%
26% 29%
41%
1% 13%14% 6% 17%
21%
28% 43%
23% 25%
27%
7% 12% 19% 2% 16%
15% 29% 3% 13%15% 5% 20% 2% 7% 9%
61%
8%17% 1% 8%9% 17%
12% 14% 26% 4% 8% 12%
18%
4% 15% 19%
26%
25%
43%
15% 17% 3% 4% 7%
32%
6% 18% 1% 5% 6%
23%
1% 9%10%
First mentioned
Other mentions
Q9: Thinking specifically about the financial products that you ve acquired or applied for in the past 12 months, where did you first hear or find out about each product you purchased / applied for in the last 12 months? Q10: Where else did you hear about, find out about or research each product you purchased / applied for in the last 12 months? Base (weighted): Respondents who acquired financial product in the past 12 months current account n=285, savings account n=330, credit card n=170, personal loan n=181, home loan n=88; answer category Other not shown
21
Future application intentions

Those respondents intending to acquire a financial product are most likely to apply for car insurances, personal loans or home loans
Intend to purchase next 12 months All respondents

Car insurance Personal Loan Home Loan / Bond / Mortgage Life insurance Credit Card
17% 13% 13% 13% 12% 10% 9% 6% 5%
South African onliners plan to purchase on average 1 financial product in the next 12 months. Overall 46% of the South African onliners dont plan to make a purchase in the finance vertical in the next 12 months.
Home insurance
Savings Account Travel insurance
Current account
Q13a: Which of the following products, if any, do you intend to purchase/apply for in the next 12 months? Base (weighted): All respondents n=1,000; answer categories Other and None of the above not shown
22
Likelihood of researching products online

3 out of 4 purchase intenders are likely to research online for their next financial products, but also 3 out of 4 of those who havent done online research so far intend to do so in the future
How likely are you to research your next financial products online? Purchase intenders
Researched online in the past 12 months Researched not online in the past 12 months
Purchase intenders
75%
52% 23% 4% 13%
77%
58% 19% 4% 13%
72%
51% 21% 6% 15%
Very likely Fairly likely Fairly unlikely Very unlikely
17%
18%
21%
Q13b: How likely are you to research any of these financial purchases/applications online? Base (weighted): Purchase intenders n=540; Purchase intenders who researched online n=216; Purchase intenders who did not research not online n=443
23
Mobile research prior to purchase

1 out of 4 finance purchasers used a mobile for research purposes highest likeability for mobile research on savings and current accounts
Mobile research prior to purchase Purchasers of financial products in past 12 months
Savings account Current account Credit card Personal loan

No 75% Yes 25%
9% 9% 4% 4% 2% 2% 1% 1% 0%
I used a mobile device (e. g. netbook, smartphone, tablet, etc.) for research prior to purchase
Home loan/Bond/Mortgage Car insurance Home insurance Life insurance Travel insurance
Q10a: For which of the following financial products that you purchased / applied for in the last 12 months did you use a mobile device in order to inform yourself prior to purchase? Base (weighted): Purchasers of financial products in the past 12 months n=701; answer category Other not shown
24
Devices in use for mobile research

Almost a quarter of those who researched for financial products via mobile devices used their smartphone
To inform myself prior to purchase I used Researchers via mobile devices

Laptop/ netbook on the go
Smartphone
Other mobile phone
80%
24%
18%
Feature/ WAP phone
Tablet PC
5%
Q10b: And which of the following devices did you use in order to inform yourself prior to purchase? Base (weighted): Researchers via mobile devices n=178
1%
25
Unpacking online behaviour
26
Websites used to research financial products

Search engines are by far the most popular online information source to research financial products - 7 out of 10 online researchers use them
Websites used to research financial products Online researchers

Search engines Corporate websites of major banking brands Finance portals Blogs and consumer review sites News websites Price comparison sites Other type of website Dont know/cant remember
72% 27% 25% 10% 10% 8% 2% 1%
Q14: You said that you used the Internet to research some of the financial products that you acquired in the past twelve months. Which websites did you use to research these financial products? Base (weighted): Online researchers n=216
27
Evaluation online research process

There is strong agreement that researching online is quick and easy while offering lots of valuable information for decision support
Evaluation online research process Online researchers

You easily found the products / information that you were looking for There was a huge amount of information available to help you with your decision Researching financial products online was a quick process
85%
55%
79%
39%
67%
36% 32% 7% 10%
strongly agree agree disagree strongly disagree
29%
39% 1%
4%
2%
Q16: Could you tell me to what extent you agree or disagree with the following statements regarding the research you conducted via the Internet. Base (weighted) : Respondents who research the products online n=216
28
Attitude towards online research

Researching online prior to an offline purchase is quite common among online researchers, most of them are aware of online application and information offerings
Attitude towards online research Online researchers

I tend to research financial products online before applying offline I prefer to speak to a consultant so that you can ask advice I do not trust online sources to give accurate and impartial information I visited the internet but there were no application offerings online There is very little financial information available online
78%
38% 40% -1% 3%
51%
19% 31% 17% 7%
strongly agree
21%
6% 15% 27% 1%
11%
1% 10% 33% 33%
7%
0% 6% 28% 42%
agree disagree strongly disagree
5%
25%
54%
66%
70%
Q17: Please could you tell me whether you agree or disagree with the following statements regarding the research you generally do for these products via the Internet? Base (weighted): Online researchers n=216
29
Online Banking
Online banking: usage and usage intention

Two thirds of all respondents use online banking, almost 40% of the non-users intend to do so in the future
Use of online banking All respondents
Likelihood of online banking in future Non-user online banking
39%
No 34% Yes 66%
18%
very likely
21%
quite likely
21%
neither/ nor
10%
quite unlikely
30%
very unlikely
Q19: Do you currently use online banking for your own personal banking transactions? Q20: How likely would you be to use online banking in the next 12 months? Base (weighted): All respondents n=1,000; Non-users of online banking n=336
31
Barriers for online banking

Main barriers for online banking are safety issues, traditional in-branch banking and needs for personal consultancy
What are your reasons for choosing not to bank online? Non-users of online banking
No, I dont use online No, I donbanking t use online
banking.
Im afraid my money / personal information wont be safe I am used to traditional (in-branch) banking I just havent got round to signing up yet I prefer to speak to the bank consultants and get advice/ information
31% 29% 23% 18% 15% 12% 10% 10% 2% 2% 0% 0%
34%
I only have limited access to the internet

Its too complicated Its more convenient for me to go to the bank It involves additional costs I have a poor internet connection, it makes online banking very slow You cannot bank online with my banking provider I didnt know you could bank online I didnt know you could bank online with my financial provider
Q21: What are your reasons for choosing not to bank online? Base (weighted): Non users of online banking n=336; answer categories Other and Dont know not shown
32
Mobile banking
Banking related activities using mobile phone

The vast majority of the South African onliners uses mobile banking - receiving transaction or account alerts by SMS is most popular
Banking related activities using mobile phone past 12 months All respondents
Received transaction alerts by SMS Received account alerts by SMS Checked your account balance Topped up your mobile phone credit Transferred funds between your accounts Checked your recent transactions Transferred money to others Made bill payments by accessing mobile internet Call centre of your bank to do banking activities Paid for transactions by accessing mobile internet
52% 36% 31% 25% 21% 21% 20% 16% 15% 15% 6% 2% 2% 30%
70% of the South African onliners use mobile banking
Changed your banking PIN number

Checked stock prices by accessing mobile internet Received stock price alerts by SMS None of the above
Q22: Which of the following banking related activities have you done in the past 12 months using your mobile phone? Base (weighted): All respondents n=1,000; answer category Other not shown
36
Interest in banking related activities / mobile phone

High interest in various mobile banking activities visible top three activities are receiving transaction or account alerts and checking account balances
Interest in banking related activities using mobile phone Respondents who dont use the respective activity so far
Receive transaction alerts by SMS
Receive account alerts by SMS Check your account balance Check your recent transactions Transfer money to others Transfer funds between your accounts Pay for transactions by accessing mobile internet Make bill payments by accessing mobile internet Top up your mobile phone credit Change your banking PIN number Call centre of your bank to do banking activities Receive stock price alerts by SMS Check stock prices by accessing mobile internet n=481 n=643 n=689 n=789 n=803 n=786 n=854 n=837 n=749 n=944 n=847 n=982 n=976
39% 30% 29% 21% 24% 25% 25% 27% 19% 18% 15% 11% 10% 11% 11% 18% 15% 16% 21% 21% 31% 27% 24% 32% 23% 21% 19% 18% 37% 33%
22% 54% 53% 47% 47% 44% 44%
61% 57%
Very interested
Quite interested
Q23: How interested would you be in using the following banking-related services on a mobile phone? Base (weighted): Respondents who are interested in banking related activities not using mobile phones; answer category Other not shown
37
Internet usage on mobile device

30% of the South African Onliners use a mobile device in order to access the internet smartphones most popular in this respect
Internet usage on mobile device All Respondents

Smartphone
26% 10% 3% 6%
Other mobile phone

No 70% Yes 30%
Tablet
Feature / WAP phone
Q10b: And which of the following devices did you use in order to inform yourself prior to purchase? Base (weighted): All respondents n=1,000
38
Use of financial services via mobile internet

Almost 5 out of 10 mobile internet users read account details on the phone, 4 out of 10 buy air time or phone credit
30% of the South African onliners access the mobile internet via smartphone, tablet PC, WAP / Feature phone or other mobile phone
Use of financial services via mobile internet Respondents who access the mobile internet
Reading your account details on the phone Buying air time or phone credit Getting money out of your bank account into your phone Receiving payments for your goods or services Paying bills like for water, power, rates Transferring money from your phone into your bank account Paying for items in a shop or restaurant or bar Paying post-paid phone bills or fixed line phone bills Give instructions to your bank
21% 19% 16% 13% 10% 9% 9%
47% 38% 34% 46% 47% 43% 50% 34% 49% 25%
34% 37% 45% 35% 37% 45% 40% 58% 42%
20%
currently doing
would like to do
not interested
Q10c: Which of these do you currently use your phone for and which would you be happy to use your phone for, even if you are not doing it now? Base (weighted): Users of mobile devices in order to access the internet n=301
39
Management Summary
The internet is a relevant channel for creating awareness, supporting research and purchasing financial products however, there is still some scope for growth. Online is among the top application methods with 17% of the past 12 month purchasers having applied online. Credit cards and personal loans are the products most likely to have been acquired online. However, overall offline is still the predominantly chosen application method with face-to-face and phone applications in the lead. Researching online is perceived as a convenient method for collecting pre-purchase product information and 38% of the purchasers researched online prior to their purchase. 3 out of 4 purchase intenders in the next 12 months are going to prepare their next purchase on the internet. Most online researchers are ROPO customers: 78% agree that they usually purchase offline after having researched online. Among the online information sources search engines are the top source for research on financial products with Google being the most commonly used and best rated one. Accordingly presence on Google enhances presence in the online research process and relevance for the (offline) purchase. Both online and mobile banking are very popular and used by the majority of the South African onliners. The most popular activities are related to administration rather than to transactions, e. g. checking account balances or receiving SMS alerts. Mobile internet usage already established: 30% of the South African onliners use a mobile device for accessing the internet - the vast majority (26%) of these use a smartphone.
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Shopping For Financial Products in South Africa

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Vertical Deep Dive Finance

Methodology - VDD Finance South Africa

Final report: November 18th, 2011

Source: Google, Vertical Deep Dive Financial : May 2012 |

Methodology SRS Telephone Survey

CATI (Computer Aided Telephone Interviews)

Research company: TNS Infratest

Source: Google, Vertical Deep Dive Financial : May 2012 |

Weighting of the data

Source: Google, Vertical Deep Dive Financial : May 2012 |

Analysis of the data

SRS Telephone Survey

VDD Finance South Africa

South African population aged 18+

South African onliners aged 18+

South African onliners aged 18+

Source: Google, Vertical Deep Dive Financial : May 2012 |

Relevant finance products for South Africa

Other Financial Products

Current account/ Cheque account

Home loan/ Bond/ Mortgage

Source: Google, Vertical Deep Dive Financial : May 2012 |

Financial products Ownership and Purchase

Awareness of financial institutions

Awareness of financial institutions All respondents

Source: Google, Vertical Deep Dive Financial : May 2012 |

Ownership and purchase of financial products

Ownership and purchase of financial products All respondents

Purchase financial products (past 12 months)

33% 29% 17% 11% 13% 9% 18% 9% 1%

Source: Google, Vertical Deep Dive Financial : May 2012 |

Ownership / purchase of financial products - Banks

41% 34% 27% 19% 22% 19% 9% 21% 41%

11% 11% 11% 9% 10% 4% 8% 5% 8% 3% 7% 5% 7% 4% 7% 4% 6% 4% 6% 3%

18% 11% 7% 17% 15% 16% 6% 15%

Source: Google, Vertical Deep Dive Financial : May 2012 |

Repertoire of past 12 m. financial product application

Other financial products

Source: Google, Vertical Deep Dive Financial : May 2012 |

Financial product application Top 10

Standard Bank (n=132) 20 18 100 13 17 13 17 18 10 23

African Bank (n=75) 37 19 22 33 7 100 17 10 15 29

Old Mutual Outsurance (n=65) !* 35 17 35 28 14 20 100 27 18 48 (n=61) !* 46 31 40 11 20 13 28 100 21 44

Sanlam (n=51) !* 32 48 26 21 19 22 23 25 100 41

ABSA/Bank fin (n=189) 22 15 16 15 7 11 16 14 11 100

Source: Google, Vertical Deep Dive Financial : May 2012 |

Method of application / acquiring

Application method Purchasers of financial products in the past 12 months

74% 24% 17% 7% 5% 3% 1% 7%

Source: Google, Vertical Deep Dive Financial : May 2012 |

Method of application / acquiring

Other financial products

= most popular method of application

= second most popular method of application

!** very low incidence<30

Source: Google, Vertical Deep Dive Financial : May 2012 |

Factors influencing decision to apply/acquire

45% 38% 32% 28% 27% 21% 14% 11% 11% 8%

The price of the product/fees

Source: Google, Vertical Deep Dive Financial : May 2012 |

Source of awareness / research

Source of awareness / research Purchasers of financial products in the past 12 months

38% 34% 34%