TOKYO: 23 July 2013 — Overall investor satisfaction with the investment services of banks and securities companies has notably improved from 2012, according to the J.D. Power Asia Pacific 2013 Japan Investor Satisfaction StudySM released today.
The study, now in its second year, measures investor satisfaction with investment firms in six factors: account offerings; account information; trading charges and fees; facilities; problem resolution; and interaction, which includes three sub-factors—advisor, online services and call center. Overall satisfaction scores are calculated on a 1,000-point scale. The study categorizes financial institutions into five segments based on their sales systems: full-service securities; self-directed securities; full-service national banks; self-directed banks; and full-service regional banks.
In 2013, 32 percent of individual investors indicate that they increased the amount of their investments in stocks, investment trusts and other instruments during the past year, a substantial increase of 14 percentage points from 2012. Investor assessment of the investment environment has also improved markedly as a result of the weakening yen and an uptick in stock prices since the end of 2012, with 29 percent of investors saying the current investment situation is "good" (15 percentage points higher than in 2012) and 45 percent saying the economic outlook for Japan is "good" (36 percentage points higher). Furthermore, overall satisfaction with banks and securities companies has improved considerably in all segments, increasing by between 9 and 22 points from in 2012.
"Although the upturn in market conditions is a major contributor to the improvement in satisfaction, there are also other contributing factors involved. For example, in the full-service securities segment, which shows the greatest improvement in overall satisfaction, securities company advisors are stepping up their sales approach and investment proposal activities, and are offering more proactive communication with customers," said Ryutaro Nakao, manager at J.D. Power Asia Pacific, Tokyo. "At the same time, the gap in overall satisfaction scores has widened somewhat, especially among securities companies. Since overall satisfaction greatly influences the amount customers invest, their intention to continue using services and their intentions to recommend, the continuous bolstering of customer services is likely to be increasingly important for stable business expansion."
The study finds that the Nippon Individual Savings Account, or NISA (a small investment tax exemption system to be inaugurated in 2014), has already attracted the interest of individual investors. As of May 2013, when this study was fielded, 63 percent of investors indicate awareness of NISA and 50 percent indicate an intention to open NISA accounts. Both the awareness and intention to open an account are particularly high among investors who are 60 years and older. Although the rate of intention to open an account is high among men who are 30 years and younger and women 20 years and younger, awareness hasn't yet reached comparable levels among these younger investors. Amid high expectations that NISA will increase the number of beginning investors, further marketing activities targeting younger investors is a key task for the industry.
"Because our research finds that the intention rates for opening accounts tend to be higher for bank and securities companies that achieve high satisfaction ratings from individual investors, the steady pursuit of investor satisfaction can have an important impact on the success or failure in the impending full-scale competition to secure NISA customers," said Nakao.
Overall Satisfaction Rankings by Segment
Full-Service Securities Segment (five companies ranked)
Nomura Securities ranks highest in investor satisfaction for a second consecutive year, performing particularly well in the advisor sub-factor. Following Nomura Securities in the rankings are Daiwa Securities and SMBC Nikko Securities, respectively, both with high scores in the online services sub-factor.
Self-Directed Securities Segment (six companies ranked)
SBI SECURITIES ranks highest in investor satisfaction for a second consecutive year, achieving the highest scores in account information and call center. Matsui Securities ranks second, moving up one position and achieving the largest year-over-year improvement in overall satisfaction in the segment. Matsui Securities performs particularly well in trading charges and fees. Monex ranks third, with high scores in account offerings and online services.
Full-Service National Bank Segment (five banks ranked)
Sumitomo Mitsui Banking Corporation ranks highest in investor satisfaction for a second consecutive year, achieving the highest scores in account offerings and account information. Mizuho Bank and Resona Bank rank second in a tie. Mizuho Bank posts a high score in account offerings, and Resona Bank earns high scores in facilities and trading charges and fees.
Self-Directed Bank Segment (seven banks ranked)
SBI Sumishin Net Bank ranks highest in satisfaction for a second consecutive year, achieving a notably high score in trading charges and fees and also performing well in online services and account information. Sony Bank ranks second with strong scores across all factors, particularly in the call center sub-factor, followed by Jibun Bank, with a high score in online services.
Full-Service Regional Bank Segment (30 banks ranked)
Tokyo Star Bank ranks highest in this segment and achieves the highest scores in account offerings and trading charges and fees. Suruga Bank follows in the ranking, performing well in account information and online services. Minato Bank ranks third, with a high score in account offerings.
The 2013 Japan Investor Satisfaction Study is based on responses from 17,941 individual investors in Japan 18 years and older who have used investment services—such as investment trusts, stocks, foreign currency deposits and foreign exchange—at private banks and securities companies during the past 12 months. The study was fielded in May 2013.
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 protected]
About J.D. Power
J.D. Power is a global marketing information services company providing performance improvement, social media and customer satisfaction insights and solutions. The company's quality and satisfaction measurements are based on responses from millions of consumers annually. Headquartered in Westlake Village, Calif., J.D. Power has offices in North America, Europe and Asia Pacific. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power is a business unit of McGraw-Hill Financial.
About McGraw Hill Financial
McGraw Hill Financial (NYSE: MHFI), a financial intelligence company, is a leader in credit ratings, benchmarks and analytics for the global capital and commodity markets. Iconic brands include: Standard & Poor's Ratings Services, S&P Capital IQ, S&P Dow Jones Indices, Platts, CRISIL, J.D. Power, McGraw Hill Construction and Aviation Week. The Company has approximately 17,000 employees in 27 countries. Additional information is available at www.mhfi.com.