TOKYO: 3 August 2012 — Although overall customer satisfaction with the investment services of banks and securities companies is low, financial institutions have the opportunity to increase investments of individual investors by focusing on satisfaction improvements, according to the J.D. Power Asia Pacific 2012 Japan Investor Satisfaction StudySM released today.
The study measures investor satisfaction with investment firms in six factors: account offerings; account information; trading charges and fees; facilities; problem resolution; and interaction (includes three sub-factors: advisor, website and call center).
Overall customer satisfaction with the investment services of banks and securities companies is low. In particular, the industry average scores for the full-service bank and full-service securities segments--518 index points each on a 1,000-point scale--are the lowest among all industries in which J.D. Power Asia Pacific has conducted research in the past year. For example, the overall satisfaction scores of nearly 30 percent of the full-service bank and full-service securities segments are about half the scores of approximately 60 percent in the life insurance industry. In addition, satisfaction levels are extremely low in comparison with the J.D. Power and Associates 2012 U.S. Full Service Investor Satisfaction StudySM, in which the industry average score is 775.
However, the Japan Investor Satisfaction Study finds that improvement in satisfaction with investment services contributes to increasing investments from individual investors, resulting in additional income for financial institutions. For instance, while 16 percent of investors overall indicate a desire to increase the amount of their investments, the percentage increases to 32% among investors who answered the satisfaction above "Average" " with their financial institution.
"Furthermore, approximately 40 percent of highly satisfied investors actually recommend their financial institution to others, and improving satisfaction is an effective means of gaining investors," said Ryutaro Nakao, manager at J.D. Power Asia Pacific, Tokyo.
Although sales of investment products are subject to various laws and regulations, there is substantial room for increasing satisfaction by making improvements in services offered to investors. For instance, at full-service securities companies and full-service banks, satisfaction increases notably when specialist advisors understand investors' interests and concerns. However, fewer than 10 percent of investors overall have received such services. Similarly, at self-directed securities companies and self-directed banks, even though the availability of trading tools, investment simulators and other investment support tools provided by financial institutions significantly affects satisfaction, fewer than 40 percent of investors have used such tools.
"For the past 10 years, growth has been slow even among banks that have focused on increasing sales of investment trusts and by self-directed securities companies and banks that have expanded their investor bases by offering low prices and convenience," said Nakao. "Service improvement from the investor's perspective is the key to winning customer trust and achieving further growth."
Findings Highlights by Segment
The study divides financial institutions into four segments based on their sales systems: full-service bank; full-service securities; self-directed bank; and self-directed securities.
Full-Service Bank Segment (19 Banks Ranked)
Sumitomo Mitsui Banking Corporation ranks highest in customer satisfaction with an index score of 542, achieving high scores in the account offerings and account information factors and the website sub-factor. Saitama Resona Bank (532) follows in the rankings, performing well in the facilities factor.
Full-Service Securities Segment (Five Companies Ranked)
Nomura Securities ranks highest in investor satisfaction with an index score of 532, performing particularly well in the advisor sub-factor(advisor). Following Nomura Securities in the rankings is Daiwa Securities (527), with high scores for call center and trading charges and fees.
Self-Directed Bank Segment (Seven Banks Ranked)
SBI Sumishin Net Bank ranks highest in satisfaction with an index score of 611, achieving high scores for trading charges and fees, website and account information. Sony Bank (591) follows with strong scores across all factors.
Self-Directed Securities Segment (Five Companies Ranked)
SBI SECURITIES ranks highest in customer satisfaction with an index score of 584, achieving high scores in the trading charges and fees and problem resolution factors. Monex (580) follows in the rankings with high scores for account offerings, account information and website.
"Interestingly, the strengths and weaknesses of the institutions in the self-directed securities segment differ markedly for each factor, and it appears that they are attempting to differentiate themselves from competitors as much as possible in a fierce competitive environment," said Nakao.
The 2012 Japan Investor Satisfaction Study is based on responses from more than 16,200 investors in Japan who have used investment services, such as investment trusts, stocks, foreign currency deposits, and foreign exchange, at private banks and securities companies in the past year. The study was fielded in May 2012.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at www.jdpower.com. Media e-mail contact: email@example.com
About J.D. Power and Associates
Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.
About The McGraw-Hill Companies
McGraw-Hill announced on September 12, 2011, its intention to separate into two companies: McGraw-Hill Financial, a leading provider of content and analytics to global financial markets, and McGraw-Hill Education, a leading education company focused on digital learning and education services worldwide. McGraw-Hill Financial's leading brands include Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts energy information services and J.D. Power and Associates. With sales of $6.2 billion in 2011, the Corporation has approximately 23,000 employees across more than 280 offices in 40 countries. Additional information is available at http://www.mcgraw-hill.com/.
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