Eurofinas and Roland Berger are pleased to invite you to participate in their second joint survey on The Future of European Consumer Finance.

Transcription

1 2018 Future of European Consumer Finance Survey Eurofinas and Roland Berger are pleased to invite you to participate in their second joint survey on The Future of European Consumer Finance. The survey provides top industry executives with a unique opportunity to share their views on topics ranging from market outlook to key future success factors and compare these with their peers in various geographies. The questionnaire is multiple choice, requiring no or minimal data collection, and therefore should take no longer than 30 minutes maximum to complete. All individual responses will remain anonymous and only aggregated results will be published in the final report. As a participant you will be entitled to receive the full final report as well as upon request a free personalised benchmarking report from Roland Berger, which compares your firm s responses to the aggregate results. We'd kindly request that you submit your response by 22 June If you have any questions or need help submitting the questionnaire, please don t hesitate to get in touch with the team at Roland Berger, who is at your service. Thank you in advance for your support of this project. Best Regards Edoardo Demarchi Axel B hlke (0) Edoardo.Demarchi@rolandberger.com Axel.Bohlke@rolandberger.com

2 2018 Future of European Consumer Finance Survey * 1. Name: * 2. Company: * 3. Position: * 4. address: 5. Phone number:

3 2018 Future of European Consumer Finance Survey I. Participants business model 1. BUSINESS MODEL * 6. Which of the following business model best describes your Consumer Finance business unit/ company? a. Consumer finance specialist - Players offering wide range of consumer finance solutions distributed via own branches and direct channels (call center, internet), agents, brokers and dealers/ retailers; separate legal entity within their group b. Niche players - Players focused on specific client segments (e.g. near prime) or channels (e.g. motor dealers, phone/ internet) or product (e.g. cards, salary guaranteed loans,..) c. Retail banks - Players offering wide range of consumer finance solutions distributed both via the group's bank channels and other channels including a mix of via own branches and direct channels (call center, internet), agents, brokers and dealers/ retailers d. Automotive captives - Financial services arms of Automotive OEMs - dedicated mainly to financing auto / motor sales e. Retail captives - Retailers offering consumer finance solutions to their clients - mainly purpose loans and cards, but also personal loans - through specialised entities f. P2P platforms - Here referring to an online interface connecting savers and borrowers directly, without third-party involvment 2. SIZE AND PERFORMANCE * 7. What was the total value of your consumer finance outstandings at the end of 2017? < 1 bn bn bn bn > 20 bn * 8. What was the total number of your active consumer finance clients at the end of 2017? < m m 5-10 m > 10 m 9. What was the total value of new business volumes in your company or consumer finance business unit in 2017? < 50 m 50 m m 250 m bn 1-5 bn > 5 bn

4 10. What was your cost income ratio in 2017? < 30% % % 40-45% > 45% 11. What was your cost of risk in % of total consumer finance outstandings in 2017? < 1% 1-1.9% 2-3.9% 4-5% > 5% * 12. What was your Consumer Finance new business volumes mix in 2017? < 5% % % 50-75% > 75% not available a. Car and motor loans via dealers b. Other purpose loans (furniture, consumer durables, services..) via dealers/retailers c. Personal loans d. Revolving credit e. Other, please specify below If other, please specify 13. Motor loans - How were your new business volumes split between private and corporate clients in 2017? % corporate % private 14. Motor loans - how was business volume split between new and used vehicles in 2017? % new % used 3. DISTRIBUTION MIX TODAY AND IN 2021

5 15. Motor loans - What was the share of 2017 contracts per sales channel? % - < 2% 4.9% 9.9% 29.9% 50% > 50% a. At dealers' points of sale, from request to contract b. First contact via web/ mobile, contract closed at the dealer or in a physical point of sale c. Entirely online via e-commerce site / app d. Branch/ direct e. Other, please specify below if other, please specify 16. Motor loans - What sales channel distribution do you expect in 2021? % - < 2% 4.9% 9.9% 29.9% 50% > 50% a. At dealers' points of sale, from request to contract b. First contact via web/ mobile, contract closed at the dealer or in a physical point of sale c. Entirely online via e-commerce site / app d. Branch/ direct e. Other, please specify below if other, please specify 17. Other purpose loans - What was the share of 2017 contracts per sales channel? < 2% 4.9% 9.9% 29.9% 50% > 50% a. At dealers'/retailers' points of sale, from request to contract b. First contact via web/ mobile, contract closed at the dealer or in a physical point of sale c. Entirely online via e-commerce site / app d. Branch/ direct e. Other, please specify if other, please specify

6 18. Other purpose loans - What sales channel distribution do you expect in 2021? < 2% 4.9% 9.9% 29.9% 50% > 50% A. At dealers'/retailers' points of sale, from request to contract b. First contact via web/ mobile, contract closed at the dealer or in a physical point of sale c. Entirely online via e-commerce site / app d. Branch/ direct e. Other, please specify if other, please specify 19. Personal loans - What was the share of 2017 new business volumes per sales channel? < 2% 4.9% 9.9% 29.9% 50% > 50% a. Entirely through physical network (branch, agent outlet, broker) from first contact to contract b. First contact via phone, sale closed in a branch, agent outlet or broker agent c. First contact via phone, sale closed without any visit to physical network (branch, agent, broker) d. First contact via web, sale closed on the phone, in a branch, agent outlet or broker agent e. Entirely online from first contact to contract f. Other, please specify if other, please specify

7 20. Personal loans - What sales channel distribution do you expect in 2021 for new business volumes? < 5% 9.9% 24.9% 49.9% 75% > 75% a. Entirely through physical network (branch, agent outlet, broker) from first contact to contract b. First contact via phone, sale closed in a branch, agent outlet or broker agent c. First contact via phone, sale closed without any visit to physical network (branch, agent, broker) d. First contact via web, sale closed on the phone, in a branch, agent outlet or broker agent e. Entirely online from first contact to contract f. Other, please specify if other, please specify 21. Revolving credit - What was the distribution of your new business volumes by type of usage/ channel in 2017? < 5% 5-9.9% % % 50-75% > 75% a. Cash advance via ATM b. Cash advance - other channels (e.g. home banking, phone ) c. Physical POS payment d. Online payment e. Other 22. Revolving credit - What distribution do you expect for your new business volumes by type of usage/ channel in 2021? < 5% 5-9.9% % % 50-75% > 75% a. Cash advance via ATM b. Cash advance - other channels (e.g. home banking, phone ) c. Physical POS payment d. Online payment e. Other

8 4. Digitization * 23. What percentage of new contracts in 2018 do you expect to be fully digital? % % % % % 100% * 24. What percentage of new contracts do you expect to be fully digital in 2021? % % % % % 100%

9 2018 Future of European Consumer Finance Survey II. Market outlook SIZE AND GROWTH OF CONSUMER FINANCE MARKET - PARTICIPANT'S COUNTRY * 25. What growth do you expect in consumer finance new business volumes in your country [CAGR ]? % - -10% 5.1%.1% 4.9% 10% > 10% TOTAL a. Car and motor loans b. Other purpose loans (furniture, consumer durables, services..) c. Personal loans d. Revolving credit e. Other, please specify below if other, please specify * 26. What evolution do you expect in financial margin pre cost of risk per product in 2021 versus 2018? < > bp bp 0.1 bp bp bp bp TOTAL a. Car and motor loans b. Other purpose loans (furniture, consumer durables, services..) c. Personal loans d. Revolving credit e. Other, please specify if other, please specify

10 27. What do you expect to be the main factors impacting new volumes and margins for the market as a whole, and for your company in particular? 28. Which of the following business models are likely to outperform the market in terms of growth over the period in your country (top = 1; bottom = 7)? a. Consumer finance specialist b. Niche players c. Retail banks d. Automotive captives e. Retail captives f. P2P platforms g. Online broker 29. Please explain your answer to the previous question in the comments box below (max 250 words) 30. In 2021, what percentage of personal loans do you expect to be sold through P2P platforms? [% of P2P personal loans] 0% 100% 31. In 2021, what percentage of personal loans do you expect to be taken out through online broker and comparator websites? [% of online broker/ comparator personal loans] 0% 100%

11 2. MARKET STRUCTURE 32. What is the likelihood that your local market will consolidate in ? Very unlikely Unlikely Likely Very likely

12 2018 Future of European Consumer Finance Survey III. Threats 1. NEW AND EXISTING COMPETITION * 33. What social/ economic trends do you see having a major impact on the consumer credit sector in your country between 2018 and 2021? Not Somewhat Very Important a. Ageing population b. Youth unemployment c. Urbanization d. Shift from ownership to usage (i.e. uberization) e. Time spent online/ on social networks f. Immigration g. Overindebtness h. Other, please specify below If other, please specify * 34. What disruptive technologies/ innovations do you see having a major impact on your industry business models between 2018 and 2021? Not Somewhat Very Important a. P2P lending b. Big data c. API/ open banking d. New identification technologies e. Digital signature f. Artificial intelligence/machine learning g. Robotic process automation h. Other, please specify If other, please specify

13 * 35. In your view how will competition change for each of the following product categories between 2018 and 2021? Strong Less Increased increase in competition No change competition competition a. Motor loans via dealers b. Other purpose loans (electronics, furniture, other dealers, ) c. Personal loans d. Revolving credit e. Other, please specify below If other, please specify 2. REGULATORY FRAMEWORKS 36. How do you perceive the overall impact of GDPR on your business? Very negative Negative No change/ no impact Positive Very positive 37. What aspects of GDPR do you think will have the most impact on your business: No Very change/ Very negative Negative no impact Positive positive a. Restrictions on data held & processed b. Customer right to increased transparency c. Organisational requirements d. Right to be forgotten e. Data portability f. Ability to take advantage of innovative tools, e.g. improved profiling and automatisation tools g. Increased trust of data subjects 38. How do you perceive the overall impact of PSd2 and payments regulation on your business? Very negative Negative No change/ no impact Positive Very positive

14 39. What aspects of PSD2 and payment regulation do you think will have the most impact on your business? No Very change/ Very negative Negative no impact Positive positive a. Opportunity to act as Account Aggregator (AISP) for your customers b. Possibility to act as Payment Initiation Service Provider (PISP) c. Opportunity to leverage instant payments for loan disbursement

15 2018 Future of European Consumer Finance Survey IV. Key success factors and required capabilities 1. GENERAL 40. How will improvement in the following capabilities be in ? Not Somewhat Key to Important succeed a. Auto/ motorcycle rental b. Other products rental (eg smartphones) c. Current/ payment accounts d. Integration with leading wallets (e.g. ApplePay, SamsungPay, Android Pay, other local wallets, ) e. Account aggregation and Personal Financial Management f. Instant payments g. Selling P&C insurance standalone h. Offering deposits/saving facilities 2. B2B2C (AUTO AND PURPOSE LENDING)

16 41. B2B2C: How will the following capabilities be for success in ? Not Somewhat Key to Important succeed a. Competitive time from application to credit approval in e-commerce channel b. Competitive time from application to approval in the point of sale (POS) channel c. Web/ mobile marketing support to dealers/ partners d. Omni channel customer journey management e. Diversity of non-credit client offer (e.g. banking and insurance products) f. Diversity of non-credit dealer/retailer services (e.g. banking and insurance products) g. Mobile front end for dealer/retailers h. Pricing and commissioning segmentation by end customer value i. Integration of credit with payment (e.g. pay by installment) j. Other, please specify below If other, please specify

17 42. B2B2C: What degree of improvement is needed in your B2B2C activities in the following business capabilities between ? No Very improvement Some Significant significant necessary improvement improvement improvement a. Competitive time from application to credit approval in e-commerce channel b. Competitive time from application to approval in the point of sale (POS) channel c. Web/ mobile marketing support to dealers/ partners d. Omni channel customer journey management e. Diversity of non-credit client offer (e.g. banking and insurance products) f. Diversity of non-credit dealer/retailer services (e.g. banking and insurance products) g. Mobile front end for dealer/retailers h. Pricing and commissioning segmentation by end customer value i. Integration of credit with payment (e.g. pay by installment) j. Other, please specify below If other, please specify 3. B2C

18 43. How will it be to master the following capabilities to be successful in ? Not Somewhat Key to Important succeed a. Multi channel direct marketing excellence (mail, , notifications,..) b. Leveraging "big data" for targeted client offers c. Social networks for sales enhancement d. Social networks as after sales tool e. Real time/ fast cycle Customer Relationship Management (CRM) f. Omni channel customer journey management g. Competitive time from application to approval h. Pricing segmentation i. Diversity of non-credit services (e.g. banking and insurance products) j. Excellence in physical network sales k. Excellence in call center capabilities l. 100% self care m. Other, please specify below If other, please specify

19 44. What degree of improvement is needed in your B2C activities between ? No improvement Some Significant Very significant necessary improvement improvement improvement a. Multi channel direct marketing excellence (mail, , notifications,..) b. Leveraging "big data" for targeted client offers c. Social networks for sales enhancement d. Social networks as after sales tool e. Real time/ fast cycle Customer Relationship Management (CRM) f. Omni channel customer journey management g. Competitive time from application to approval h. Pricing segmentation i. Diversity of non-credit services (e.g. banking and insurance products) j. Excellence in physical network sales k. Excellence in call center capabilities l. 100% self care m. Other, please specify below If other, please specify