ING Economics Department

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1 ING Economics Department

2 DID YOU KNOW

3 Earned media is more valuable than paid media. Paid media is powerful, but earned media is priceless precisely because you can t put a price tag on people embracing your message and passing it on for free. This is what we mean by earned media we earned it. Using valuable insights to kick off positive global conversations about financial management, retirement and long-term savings, financial shopping, homes and mortgages and even the economy of football. At the heart of all these conversations is the ING brand. For the past year the ING Economics Department has been publishing quarterly International Surveys (IISs) on the state of consumer financial affairs in the countries where ING is situated. Polling on average 12,000 people, our surveys on consumer financial behaviour are amongst the broadestand most insightful in the market. Why are we doing it? To provide insights that make you smarter. Here are a few of the things we ve discovered along the way ING Economics Department

4 WELCOME TO THE DISCOMFORT ZONE Nearly half of the people we polled are uncomfortable with their savings, but no one laments their dwindling bank accounts quite like the Spanish do. And while Luxembourgers (51%) score highest in Europe when it comes to the state of their savings, their happiness pales in comparison to the sheer giddiness amongst Indians (77%) and Thais (83%). Source: ING International Survey (IIS) on Savings Q4 2011

5 LONG THE LIVE BANK OF MUM &DAD More than 60% of Italians and Turks get help from their parents when buying a home. As Kylie Minogue might say, Dutch homeowners should be so lucky. In Holland, only 18% of those polled enjoy support from their family when it comes to buying a home. Source: ING International Survey (IIS) on Homes and Mortgages, Q IIS is a great example of how we can explore our international network to achieve our goals. To become the reference point for local media by being seen as the expert for financial consumers is a great vision. IIS is definitely an important step in that direction. The ROI is already impressive and I am sure we can make even more out of it. -Roland Boekhout, CEO ING-DiBa

6 FINANCIAL HARMONY FOR BETTER OR FOR WORSE Add financial harmony to Holland s many positive attributes. Because 77% of the Dutch said they never argue about money, far outpacing the Belgians (61%), Germans (58%) and Austrians (57%). Financial matrimony in Turkey and Poland is another story: these are the only two countries where more people admitted to arguing about money than not arguing about it at all. Source: ING International Survey (IIS) on Financial Competence, Q We really appreciate the IIS, because it helps us to strengthen an image of knowledge and competence. The international data comparison allows us to offer more and better perspectives on consumer behaviour than any other competitor in our market. It supports our relations with local media and effectively leads to more and stronger media coverage. -Roel Huisman, CEO ING-DiBa Austria

7 MONEY MANAGEMENT WITH FEMININE TWIST A While most European countries feel that men and women are equally capable of managing money, a few beg to differ. Poland, Spain and Turkey swear by feminine financial smartness. That said, it s the women who are much less prepared for retirement than men. Yes gentlemen, we re probably talking about your wives, partners and/or daughters. With only 24% having non-compulsory pensions, Italian women are Europe s most vulnerable. Sources: ING International Survey (IIS) on Financial Competence, Q & ING International Survey (IIS) on Pensions and Long Term Savings, Q3 2012

8 THE HOME TEAM ALWAYS WINS Prior to Euro 2012, no fewer than 90% of Spaniards said their national team would win the tournament. Of course, 60% of Germans and 46% of Italians said their teams would win as well. Over-confidence in the home team has a name: home bias. And while it s harmless in sport it s more of a problem in investing, where over-confidence in your team could end up being costly. Source: ING International Analysis on Cup-o-nomics: It s more than just a game, Q2 2012

9 IN MUM WE TRUST Here s a bit of surprising news: most people don t trust their financial advisors. The Czech Republic is the sole exception: with 41% casting votes of trust, financial advisors might want to make a bee line towards Central Europe. Everyone else prefers to talk money with mum and dad. Source: ING International Survey (IIS) on Savings, Q The ING International Survey is a great example of consumer centricity as it puts them at the centre of the research. The survey provides the Business Units with valuable insights to create great content and news stories. Our goal is to position ING as the thought leader in consumer finances across Europe. -Mark Cliffe, Chief Economist ING Group

10 DON T WORRY BE HAPPY More than half (52%) of Europeans worry they won t have enough money to retire. Spain, Italy and France lead the pack of sceptics. The most disheartening insight is that 11% don t expect they ll ever be able to retire at all. Source: ING International Survey (IIS) on Pensions and Long Term Savings, Q Thanks to ING International Survey, ING is the first bank in the Grand- Duchy showing a real desire to gain a better understanding of how its Retail customers (and potential customers) spend, save, invest and feel about money. The interest shown by Luxembourg local press, which was translated into wide-ranging media coverage, gave us great visibility as we profile ourselves as a bank that is interested in its clients behaviours and needs and as such brings content to important financial topics. In this way, we increase our customers trust in us and our institution s presence in the media. -Rik Vandenberghe, CEO ING Luxembourg

11 EVERYTHNG S GOING TO BE ALL RIGHT RIGHT? Most Europeans underestimate the financial risks of buying a home. To prove that point: 70% of those polled didn t disagree with the statement that house prices never fall. And let s not even get into how poorly they answered basic questions about interest rates and mortgages. Source: ING International Survey (IIS) on Financial Competence, Q1 2012

12 THE ART OF SMART All the insights on the preceding pages were harvested from various international surveys (IISs) and analyses conducted by the ING Economics Department over the past year. Each quarter we publish a new survey, the most recent being our Q3 ING International Survey (IIS) on Homes and Mortgages. All IISs are available for download at The IIS is part of the Economics Department s consumer-centric ezonomics programme, a website devoted to explaining how our customers actually manage money. Of course, if you have any questions or comments feel free to consult your local economics rep. He or she is certain to have an insightful answer. After all, it s our job to offer you the type of insights that make you smarter. ING Economics Department