Introducing Kantar Vermeer

THE IMPACT OF NEOBANKS SO FAR Reg van Steen Emerce Financials 26 November 2019 6 Spain India China France Netherlands Germany US UK Brazil Singapore PENETRATION OF NEOBANKS Proportion of consumers banking with a neobank by cou 15 Proportion of consumers banking with a neobank by cou 16 Proportion of consumers banking with a neobank by cou 17 Active user Open account Download app 19 BANK APP USAGE Apparently 14% of neobank clients never use any app Huge variation: US 25%; Brazil 90% 20 NEOBANK VS TRADITIONAL BANK APP USE (OUT OF THE PAST 10 TIMES) NEOBANK APP USERS USE THAT APP 4 OUT OF 10 TIMES 22 23 NEOBANKS TRADITIONAL BANKS Brazil, Other Brazil, Other China markets China markets and India studied and India studied Customers‘ % % % % completely like’ 57 28 54 47 Customers‘ completely trust’ 53% *19% 58% 47% 24 NEOBANKS TRADITIONAL BANKS Brazil, Other Brazil, Other China markets China markets and India studied and India studied Customers‘ % % % % completely like’ 57 28 54 47 Customers‘ completely trust’ 53% *19% 58% 47% 25 NEOBANKS TRADITIONAL BANKS Brazil, Other Brazil, Other China markets China markets and India studied and India studied Customers‘ % % % % completely like’ 57 28 54 47 Customers‘ completely trust’ 53% *19% 58% 47% 26 NEOBANKS TRADITIONAL BANKS Brazil, Other Brazil, Other China markets China markets and India studied and India studied Customers‘ % % % % completely like’ 57 28 54 47 Customers‘ completely trust’ 53% *19% 58% 47% 27 Neobanks UK Actual records of account switching levels remain stable Current Account Switch Service Data Switches in 12 month period apr 18-mar 19 apr 17- mar 18 apr 16-mar 17 0 200.000 400.000 600.000 800.000 1.000.000 1.200.000 Monzo impressions Average weekly WOM impressions │Rolling 52 weeks │Financial Services Financial Services │Rolling 52 weeks And not surprisingly, the conversation is driven by 73% younger people… 21% 3% 18-34 35-54 55-69 34 Yet in relative terms, Monzo still has a very low profile versus other banks in the UK Share of Search volume 16% 14% 14% 14% 10% 7% 6% 4% 3% 3% 3% 3% 0,3% 0,1% Switching data don’t reflect the growth of challenger banks Top 5 banks for net switching in Q2 2019 – Current Account Switch Service Data 38.788 26.043 15.461 7.292 5.233 Nationwide HSBC Natwest Monzo Starling Source : Bacs data from pay.uk The account holder profile of 2nd generation challenger banks is massively different 1st generation challenger banks 2nd generation challenger banks Male 45% Male 63% Female 55% Female 37% 16-24 12% 16-24 24% 25-34 17% 25-34 47% 35-44 13% 35-44 24% 45-54 17% 45-54 5% 55-64 17% 55-64 65+ 24% 65+ Source : Kantar omnibus July 2019 Top 5 reasons for taking out an additional account Total 2nd generation challenger customers Base 343 68 1 To have an account with a bank which 18% 30% has a convenient branch I can go to To have an account for my ‘spending 2 23% 29% money’ 3 To have a specific account that is just for 24% 25% paying bills 4 To have an account for big ticket items 21% 24% such as holidays 5 I like to know that my money is with more 24% 24% than one bank Source : Kantar omnibus July 2019 39 Revolutie 40 Neobanks groeien meest in ‘underbanked’ markets onderscheidend = penetratie én activatie 41 Neobanks ook voor jongeren secundaire bank Investeerders hebben lange adem nodig 42 ‘Traditionele’ banken zijn niet zo traditioneel Anders was er veel meer churn 43 ‘Traditionele’ banken mogen niet achterover leunen Blijven investeren in CX én branding! 44 Reg van Steen Senior Client Director – Financial Services [email protected] +31 (0) 630 830 079 Download het rapport https://www2.kantar.com/future-finance- neobanks-2019.

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