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Pre vie w oFConsumer InvestIng—How do BankS and Credit UnionS Fit?

Consumer investing—How do Banks and Credit Unions fit? | Page 2

ContentsIntroduction ...................................................................................................................................................................................................................... 4

Consumer Investing

1. what type of financial advisor do you use for investing? results – total respondents ..................................................................................................................................................................................... 6 results – By Gender, age and income ....................................................................................................................................................................... 72. which services do you utilize at your bank or credit union? results – total respondents ..................................................................................................................................................................................... 8 results – By Gender, age and income ....................................................................................................................................................................... 93. which products make up your investment portfolio? results – total respondents ................................................................................................................................................................................... 10 results – By Gender, age and income ............................................................................................................................................................... 11-164. what type of investor are you? results – total respondents, Gender, age and income ........................................................................................................................................... 175. How would you describe your risk when it comes to investing? results – total respondents ................................................................................................................................................................................... 18 results – By Gender, age and income ..................................................................................................................................................................... 196. if you were to begin/increase your investing where would you be most likely to go? results – total respondents ................................................................................................................................................................................... 20 results – By Gender, age and income ............................................................................................................................................................... 21-227. why would you be more likely to invest at the location you chose in question six? results – total respondents ................................................................................................................................................................................... 23 results – By Gender, age and income ..................................................................................................................................................................... 248. where do you or would you find information about investments? results – total respondents ................................................................................................................................................................................... 25 results – By Gender, age and income ..................................................................................................................................................................... 269. Please rank the following in order of how you would prefer to learn about what services your bank or credit union offers. results – total respondents ................................................................................................................................................................................... 27 results – By Gender, age and income ............................................................................................................................................................... 28-3610. what would encourage you to meet with someone in your bank or credit union's investment department? results – total respondents ....................................................................................................................................................................................37 results – By Gender, age and income ..................................................................................................................................................................... 3811. which of the following would MoSt encourage you to meet with someone in your bank or credit union's investment department? results – total respondents ................................................................................................................................................................................... 39 results – By Gender, age and income ..................................................................................................................................................................... 4012. Please rate the importance that your bank or credit union has a certified financial planner available to meet with. results – total respondents, Gender, age and income ........................................................................................................................................... 4113. if you were in the market for the following, please rate the likelihood you would purchase each from your bank or credit union vs. another source. results – total respondents, Gender, age and income ..................................................................................................................................... 42-4614. Please rate your perception of the cost associated with investing through each of the following. results – total respondents, Gender, age and income ..................................................................................................................................... 47-5015. what other services would you like to see offered at your bank or credit union? results – total respondents ................................................................................................................................................................................... 51

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Contents

Demographics

Gender ............................................................................................................................................................................................................................... 53age .................................................................................................................................................................................................................................... 53education ............................................................................................................................................................................................................................54income ............................................................................................................................................................................................................................... 54region ................................................................................................................................................................................................................................55

RateWatch would like to thank Ron Knaflic, AAMS, and Advisory Board Members: Greg Anderson, Shirley Cate, Tina Nutt and Evette Bertsche for providing valuable input during the survey development process.

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Introduction

increase non-interest income. this has been the mantra for many over the last several years. easy. increase your fees, right? But now that that’s been done, what’s next? Many financial institutions are looking outside the box to uncover other products and services that can be offered to their clients to add value, strengthen relationships and bring in additional revenue.

investment programs are now starting to sprout up across the country. For some, this is not a new venture, but the focus has shifted from a department that’s nice to have so as not to have to direct a client elsewhere, but a key area adding to the bottom line.

ratewatch advisory members recently revealed some key elements to a successful investment program:

• Sustained, detailed marketing plan – make sure customers are aware of diverse offerings and how to reach out

• Staff buy-in and participation – great communication of goals, proper education and valued incentives will help increase traffic and scheduled client meetings

• willingness to disseminate funds from the balance sheet to the program – as you move dollars internally, you’ll likely see new money coming in from other institutions

it is also important to understand who is investing and in what. this survey aims to understand the behaviors and preferences of consumers regarding their current and future investment plans and how the financial institution may be able to play a role. Survey responses were obtained through a third party service with questions distributed July 23 to august 12, 2014 to consumers ages 18 and older throughout the United States. 864 total unique responses were received with 710 having completed the full survey.

there is no doubt americans need to invest for their futures – increasing age expectancy and cost of living is driving up retirement age...but many are weary. Millenials have already been through two crashes and older generations have spent years and years of waiting and watching only to lose nearly everything in minutes. they are looking for someone they trust, someone they have built a relationship with, to help them make important financial decisions. who will they turn to? will it be you?

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ConSumeR InveStIng

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Consumer investing—How do Banks and Credit Unions fit? | Page 6SURVEY PREVIEW

survey results — total respondents, gender, Age and Income

Question 4: what type of investor are you?

38.04%Full guidance

40.04%Some guidance

21.92%no guidance

By gender

By Age

By Income

Male (210) 27.62% 44.29% 28.09% 100%

Female (278) 42.45% 38.85% 18.70% 100%

18-29 yrs (71) 32.39% 40.85% 26.76% 100%

30-44 yrs (118) 32.20% 37.29% 30.51% 100%

45-60 yrs (156) 37.82% 44.87% 17.31% 100%

>60 yrs (143) 39.16% 40.56% 20.28% 100%

$0 - $24,999 (30) 56.67% 23.33% 20.00% 100%

$25,000 - $49,999 (73) 36.99% 36.99% 26.02% 100%

$50,000 - $99,999 (150) 36.67% 45.33% 18.00% 100%

$100,000 - $149,999 (88) 25.00% 46.59% 28.41% 100%

$150,000+ (67) 34.33% 41.79% 23.88% 100%

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*Respondents who answered question 3, 4 & 5 are investors.*number of respondents are shown in parenthesis

Females are significantly more likely than their male counterparts to prefer full guidance in their investing decisions, and while males are most likely to seek some guidance, they are much more likely than females to make decisions on their own.

Consumer investing—How do Banks and Credit Unions fit? | Page 7SURVEY PREVIEW

survey results — total respondents

30.98%Moderately aggressive

7.43%aggressive

1.27%very aggressive

17.39%Conservative

42.93%Moderately Conservative

Question 5: How would you describe your risk when it comes to investing?

*Respondents who answered question 3, 4 & 5 are investors.

Consumer investing—How do Banks and Credit Unions fit? | Page 8SURVEY PREVIEW

survey results — total respondents

Question 8: where do you or would you find information about investments? (Check all that apply)

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Consumer investing—How do Banks and Credit Unions fit? | Page 9

more surveys from rateWatch

ratewatch conducts surveys of both bankers and consumers across the country to keep up with new and evolving financial industry topics. Surveys are conducted online and responses are compiled into a report format with charts and graphs to easily review the findings. results are displayed as a whole for all respondents and also broken out into cohort groupings. visit our industry Survey webpage to request more information or purchase a previously released survey.

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