September TD Bank Checking Experience Index 2015

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1 September 2015 TD Bank Checking Experience Index 2015

2 Overview TD Bank s 3 rd Checking Experience Index - better understanding consumers checking account experiences, behaviors and attitudes. Methodology The total sample includes 1474 respondents who have checking accounts. Sample includes boosters for: Boston (300) Hispanic (150) Millennial (588) Gen Z (170) Data has been weighted by age, gender and region to reflect the population. The survey was fielded September 10 th 16 th This report presents the findings in summary charts and tables. The statistical cross-tabulations are reported under separate cover. Significance is tested at 95% confidence interval and is represented by circles: significantly higher significantly lower Financial Accounts/Products Owned or Used Checking account 90% 91% 90% 75% 84% Debit card or check card 78% 78% 77% 71% 79% Savings account 70% 7 68% 68% 7 Credit card 67% 69% 70% 3 55% Investments 3 34% 30% 5% 19% Mortgage % 19% Reloadable prepaid card 1 9% 8% 7% 6% Home equity loan/line of credit 10% 10% 1 11% Q1. Which of the following types of financial accounts or products do you currently have/use?

3 Day-to-Day Checking Account Experience Satisfaction with Primary Checking Account Satisfaction with Primary Checking Account has remained stable year over year Top 2 Box 80% % 40% Extremely satisfied 39% 4 41% 34% 41% 41% Very satisfied 20% 17% 17% Somewhat satisfied Not very satisfied Not at all satisfied 41% 18% 40% 16% 4 15% Top 2 Box 1% 1% 1% 0% 0% 78% 8 81% Day-to-Day Experience with Checking Account Day-to-day experience with primary checking account has also remained stable Top 2 Box 8 86% 86% Excellent 40% 45% 44% 4 47% 41% 40% 39% 45% Very good Okay Not very good 4 41% 4 18% 14% 14% 0% 0% 0% 16% 1% 1 1% 14% Top 2 Box 8 86% 86% Q7. All things considered, how satisfied are you with your primary checking account? Q8. How would you rate your day-to-day experience with your checking account?

4 Rating of Day-to-day Banking Experience Day-to-Day Banking Experience (Excellent/Very Good) Friendly and helpful service, accessibility and providing services that make life easier score top praise. For the most part, ratings of individual experiences remain stable. Gen Z gives slightly lower rating for responsiveness and transparency, however are happy with the products and service! Accessibility 8 85% 85% 8 86% 81% Friendly and helpful service % 81% 87% 84% Making my day-to-day banking easier 81% % 84% 84% Responsiveness to questions and/or concerns 80% 80% 81% 77% 76% 80% Knowledgeable bank representatives 78% 81% 81% 77% 85% 79% Easy to understand products and services 76% 79% 79% 79% 84% 79% Providing banking options that are right 74% 80% 79% 8 85% 80% Transparency 71% 7 74% 76% 69% 69% Provide services/features that make life easier N/A 79% 81% 78% 84% 80% Q9. Thinking about your primary checking account and your day-to-day banking needs, how would you rate your bank on each of the following?

5 Rating of Day-to-Day Services/Features Rating on Bank Providing the Following (Excellent/Very Good) Gen Z give higher ratings for Mobile banking, debit cards and online transfers. Hispanics find their bank less convenient. Easy to use online banking Convenient banking hours Convenient branch locations Convenient ATMs Mobile banking Debit card or check card Online transfers with your bank Online bill pay Online transfers to another institution Remote check deposit Call center availability N/A % 9 86% 86% % 66% 61% 8 80% 78% 80% Value to Day-to-Day Banking Services/Features (Ranked 1 or 2) The value of Mobile banking slightly increases. Gen Z consumers value the use of mobile banking far more than the National average. Debit card or check card Easy to use online banking Convenient branch locations Online bill pay Convenient ATMs Convenient banking hours Mobile banking Online transfers within your bank Online transfers to another institution Remote check deposit Call center availability NA 39% 3 26% 21% 21% 18% 1 1 8% 8% Q10. And how would you rate your bank on providing you each of the following? Q11. Please rank each of the following in order of most valuable to you when you think about your day-to-day banking needs, to least valuable. 35% % 21% 18% 17% 1 7% 9% 7% 75% 7 70% 7 84% 8 79% 69% 68% 7 74% 75% 7 65% 74% 69% 74% 71% 71% 81% 87% 84% 88% 9 88% 80% 84% 8 85% 74% 76% 65% 76% 71% 7 75% 74% 74% 74% 70% % 4 41% 27% 2 29% 14% % 11% 14% 17% 2 21% 11% 16% 11% 24% 39% 3 21% 14% 14% 10% 5% 7% 11% 10% 1 14% 5% 6%

6 Role of Checking Account Services Debit/check card importance has slightly declined since Gen Z respondents show to value their debit/check card and mark it as essential when owning a checking account. Over 40% find their Mobile App essential (compared to 2 Nationally) Debit Card/ Check Card Remote Check Deposit Online transfers within bank Online transfers to another FI Online Bill Pay My bank s mobile app Essential in % 1 34% 17% 38% n/a Essential Convenient 56% 17% 28% 35% 20% 34% 37% 2 27% Nice to have Not necessary 24% 9% 11% 26% 29% 37% 16% 1 25% 21% 3 18% 1 19% 3 Q12. Which statement best describes each of the following services associated with your checking account?

7 Role of Checking Account Services Debit Card/ Check Card Remote Check Deposit Online transfers within bank 60% 74% 71% 27% 20% 19% 6% 5% 7% 7% 1% 28% 20% 27% 28% 36% 34% 20% 34% 26% 2 11% 14% 36% 4 39% 39% 4 37% 18% 1 18% 7% 6% Online transfers to another FI 25% 26% 26% 35% 37% 34% 27% 2 25% 1 15% 15% Online Bill Pay % 31% 4 34% 21% 17% 18% 6% 8% 9% My bank s mobile app 36% 41% 4 30% 36% 30% 17% 16% 14% 17% 6% 1 Q12. Which statement best describes each of the following services associated with your checking account?

8 Fees Associated with Primary Checking Account Overall, 60% pay at least one fee on their primary checking account, consistent with this time last year. Gen Z are far more likely to say they are paying fees (8) Overdraft fee 36% 40% 38% 41% 48% 48% ATM fee (non-bank) % 36% 49% 45% Minimum balance fee 14% 15% 20% 25% 30% 27% Monthly service fee 1 17% 17% 27% 17% 21% ATM fee (bank) 4% 4% 7% 9% 11% 11% Check processing fee 4% 6% 6% 8% 9% Online banking fee 4% 4% 8% 8% Per transaction fee 5% 7% 9% 9% No fees/uncertain 4 41% 39% 31% 17% 25% Average Minimum Balance to Avoid Fees: 2013: $ : $ : $1,065 Q15. What types of fees are associated with your checking account? Q17. What is the minimum balance required for your checking account in order for you to not pay a fee?

9 Number of Transactions & Experience Number of Transactions Per Week Gen Z are actively banking and conduct more mobile, online banking and debit card transactions than the average. Debit card/ check card Online banking Online bill pay ATMs associated with your bank (in network) Mobile banking Online account-to-account transfer within your bank In branch Remote check deposit ATMs not associated with your bank (out of network) Telephone banking Online account-to-account transfer to another institution Rating of Transaction Types (Excellent/Very Good) Debit card/ check card Online account-to-account transfer within your bank Online banking ATMs associated with your bank (in network) Mobile banking Online bill pay In branch Remote check deposit Online account-to-account transfer to another institution Telephone banking ATMs not associated with your bank (out of network) 9 91% 90% 88% 88% 88% 86% 8 81% 77% 61% 9 94% 9 88% 91% 91% 87% 9 90% 84% 90% 88% % 9 81% 86% 85% 75% 78% 89% % 85% 86% 79% 7 80% 74% 61% 65% Q18. On average, about how many transactions do you execute each week using each of the following methods? Transactions could include making deposits, withdrawals, money transfers, paying bills, etc. Q21. How would you rate your experience with each of the following?

10 Channel Preferences Channel Preference for Transactions Online banking is the most preferred transaction. Mobile banking is second for Gen Z Online banking 51% 46% 47% 38% 41% In branch 20% 20% 9% 14% 11% ATMs associated with bank (in network) 18% 19% 24% 19% 2 Mobile banking 7% 10% 14% 28% 2 ATMs not associated with bank (out of network) 0% 1% Telephone banking 0% 1% Security Concern (Extremely/Very Concerned) ATMs out of network, payment platforms and telephone banking are the greatest concern for personal information risk ATMs not associated with bank (out of network) Peer-to-peer payment platforms Telephone banking Mobile banking Online banking ATMs associated with bank (in network) In branch 5 51% 50% 4 39% 36% 31% 68% 51% 5 65% 46% 57% 86% 49% 55% 50% 3 40% 5 34% 39% 51% 34% 40% 51% 37% 38% Q20. What channel do you most prefer conducting transactions with on your checking account? Q22. How concerned are you about the security of your account/personal information when using each of the following?

11 Account Issues & Switching First Point of Contact for Issues Concerning Checking Account Over the phone or in-person contact is most preferred for resolving checking account issues. Telephone In branch My bank s website 3 31% 27% 31% 3 30% 2 25% 19% 3 30% 36% My bank s mobile app Social media Other 5% 10% 1 11% 0% 0% 1% Closed Checking Account in the Past 2 Years 9-in-10 respondents have not closed or switched their checking account in the past 2 years YES YES 8% 11% YES 19% 26% 18% 9 89% NO 81% 74% 8 NO NO Q23. Thinking about the last time you had a question or concern about your checking account, where did you first go to resolve the issue? Q25. Have you closed or switched your primary checking account in the last 2 years?

12 Preferred Banking Methods Preferred Method of Payment of Day-to-Day Purchases Cash as a preferred method for day-to-day purchases has slipped this year. Debit is a must for Gen Z Cash Credit Card Debit Card Prepaid Card 4 30% 26% 47% 2 31% 19% 2 18% 29% 1 26% % 0% 1% 1% Preferred Method for Checking Balance Overall, online banking website is the most preferred method for checking your balance. Gen Z is more likely to use the mobile app and less likely to use online banking. My bank s online banking My bank s mobile app My bank branch An ATM Telephone banking Text message A personal finance None of the above 7% 5% 4% 1% 0% 21% 59% 49% 36% 44% % 4% 4% 0% 4% 0% 0% 0% 1% 1% Q5. What is your preferred method of payment for your day-to-day purchases? Q29. When you want to check the balance in your checking account, where do you go first?

13 Preferred Banking Methods Preferred Method for Online Purchases Nationally, credit cards lead the set for online shopping purchases. Hispanics and Gen Z prefer a debit card. Credit card Debit card PayPal Gift Card Prepaid Card Apple Pay I never make online purchases 4 31% 19% 0% 34% 18% 29% 39% 60% 47% 17% 10% 16% 4% 7% 4% 1% 0% 0% 1% 4% Preferred Method for Holiday Purchases Similarly, credit cards is the preferred method of payment when shopping during the Holidays. Hispanics and Gen Z prefer a debit card. Credit card Debit card PayPal 6% 4 40% 35% 18% 34% 47% 66% 50% 7% 4% Prepaid Card Gift Card 1% 5% 6% Apple Pay 0% 1% 0% 1% Google Wallet 0% 1% 0% 0% Cash & Other 7% 6% 5% Q35. What is you preferred method of payment for online purchases? Q36 What is your preferred method of payment when shopping during the holidays?

14 Preferred Banking Methods Preferred Method to Transfer Money The go-to method for transferring money from one account to another in online banking. While only 14% overall are using their bank s mobile app, this increases to 37% among Gen Z. My bank's online banking 54% 51% 37% 47% My bank's mobile app My bank branch An ATM Other None of the above 14% 14% 1 25% 37% 29% 10% 1 10% 4% 1% 4% 0% 0% 8% 11% 10% Q34 When you want to transfer money from one of your bank accounts to another, where do you go first?

15 Preferred Method when Paying Bills Methods Used to Pay Bills Traditional checks continue to be a go-to method to pay bills. Gen Z reaches for their Debit card. Check that I write and send Debit card Online Credit card Cash Check that my bank sends on my behalf Prepaid Card 40% 35% 3 27% 18% 17% 29% 21% 26% 4 47% 47% 25% 21% 26% 34% 1 29% 2 21% % 4% 1% 4% Specific Online Methods Online bill pay via the bank and recipients website are the most popular online payment methods. My bank's online bill pay 64% 78% 54% 60% Online Bill Pay via the recipient's website 50% 36% 27% 5 My bank's mobile app 10% 19% 1 21% PayPal 9% 8% 1 15% A peer-to-peer payment platform offered by my bank 0% 1% 6% Google Wallet 0% 0% 7% Popmoney 0% 1% 5% Square Cash 0% 1% 4% SnapCash 1% 0% 0% 4% Venmo 1% 0% 1% Other 4% 8% 5% Q37. Which of the following methods do you use to pay your bills? Please think of all your bills such as rent, utilities, cell phone, etc. Q38. More specifically, which online methods do you use to pay your bills?

16 Use of Alternative Services to Pay Someone Used in Past 3 Months to Pay Someone Used by nearly half, PayPal is the most popular service. PayPal Google Wallet Venmo A peer-to-peer payment platform offered by my bank Square Cash SnapCash Popmoney None of the above 7% 4% 4% 47% 47% 46% 41% 55% 10% 1 7% 7% 7% 6% 5% 5% 7% 6% 6% 0% 4% 41% 49% 36% Satisfaction with Services Satisfaction is strong for those using these services. PayPal Google Wallet Venmo Peer-2-Peer 88% 91% 8 89% Extremely satisfied Very satisfied Somewhat satisfied Not very satisfied Not at all satisfied 47% 54% 48% 41% 37% 3 11% 1% 7% 16% 56% 3 10% Q30. Which of the following services have you used in the past three months to pay someone? Q31. All things considered, how satisfied are you with each of these peer-to-peer payment platforms?

17 Use of Alternative Services to Pay a Business Used in Past 3 Months to Pay Someone Only 11% have used a new payment service to pay a business. Hispanics seem earlier to adopt. Google Wallet 7% 1 7% 14% Apple Pay 6% 10% 6% 10% Samsung Pay 4% 6% None of the above 89% 81% 88% 80% Satisfaction with Services Satisfaction is strong for those using these services. Google Wallet Apple Pay 81% 98% Extremely satisfied Very satisfied Somewhat satisfied Not very satisfied Not at all satisfied 47% 35% 16% 68% 30% Q30. Which of the following services have you used in the past three months to pay someone? Q31. All things considered, how satisfied are you with each of these peer-to-peer payment platforms?

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