Attitude Survey Concerning the Use of Financial Institutions and Purchasing Behavior for Financial Products- Distribution of "Financial" Literacy Level and Behavior Pattern for Each Level -

NTT DATA INSTITUTE OF MANAGEMENT CONSULTING, INC. (Head office: Shibuya-ku, Tokyo, President and Chief Executive Officer: Takashi Sasaki) and NTT DATA Corporation (Head office: Koto-ku, Tokyo, President and Chief Executive Officer: Toru Yamashita) conducted a "Questionnaire Survey Concerning the Use of Financial Institutions" on consumers (6,250 persons) all over Japan in order to understand the purchasing behavior for each financial product, the status of and future outlook for financial product transactions, and consumers' experience of changing to another financial institution, among other things.

Based on the survey results, we grouped the respondents into four literacy levels ("highest financial literacy," "high financial literacy," "medium financial literacy," and "low financial literacy") on the basis of the so-called "financial literacy ^(*) " determined according to "the level of understanding of financial products suited for oneself." We then analyzed the difference, trends and characteristics for each level with respect to the way of thinking about the purchase of financial products, behavior pattern, and purchase rate for financial products, among other things.
* Literacy: Ability to read and write, knowledge and competence

Principal Results of Survey Analysis

1. Financial Literacy Level
   The distribution of the level of financial literacy determined according to "the level of understanding of financial products suited for oneself" shows that users deemed to have "the highest literacy" account for 8.8% of the total, followed by users with "high literacy" accounting for 18.0%, users with "medium literacy" comprising 40.8%, and users with "low literacy" making up 23.6%.
   In recent years, with the diversification of financial products and services, users are being called on to raise their risk awareness and make decisions on their own responsibility. Amid this trend, it has been pointed out that literacy needs to be enhanced through the promotion of finance and economic education and other initiatives. However, judging from the survey results, it can hardly be said that at present users' interest in and knowledge of "finance" is at a satisfactory level.
2. Basic Policy for Purchasing Financial Products
   A high percentage (46.6%) of respondents with the highest financial literacy (who know very well the financial products most suited for themselves) replied, "I analyze the products myself." when choosing a financial product. This figure far surpassed the percentage of respondents (13.7%) who replied, "I consult someone I can trust."
   On the other hand, of the respondents considered to have a low level of financial literacy (who do not have any interest or detailed knowledge of financial products), 19.3% replied, "I analyze the products myself" and 19.8% replied, "I consult someone I can trust."
   It can be observed that those with high financial literacy tend to be "self-sufficient" and select financial products based on their own decision while those with low financial literacy tend to be "dependent on others" and seriously take the advice of others in selecting financial products.
3. Behavior Pattern at the Time of Purchasing Financial Products
   If the purchasing behavior at the time of purchasing financial products is classified into the three steps of "information gathering" → "consultation" → "decision of purchase", users with the highest financial literacy tend to attach importance to "information gathering" (rate of implementation for investment-type financial products: 93.2%) and tend not to "consult" others (rate of implementation for investment-type financial products: 22.8%). On the other hand, among users with low literacy, the percentage of those who implement "information gathering" is somewhat low (73.1%) while the percentage of those who consult someone is high (36.6%).
   It can be seen that a difference in the way of thinking about purchasing financial products between users with high financial literacy and those with low literacy gives rise to different perceptions about the purchasing behaviors of "information gathering" and "consultation".
4. Purchase Rate for Financial Products
   Next, the purchase rate at the time of "decision of purchase" is high (82.6%) among users with the highest financial literacy, especially for investment-type financial products, far exceeding the purchase rate for users with low literacy (52.4%).
   It can be surmised that a difference in the implementation rate and degree of satisfaction with "information gathering" and "consultation" by users with high financial literacy and those with low literacy gives rise to a difference in the actual purchase rate too.
5. Rate of Change of Most Frequently Used Financial Institution (Main Bank)
   Among users deemed to have "the highest" financial literacy and "high" literacy, at least 50% of them have changed their main bank to another bank, surpassing the rate for users with "medium" and "low" literacy (42.9% and 31.1%, respectively).
   Regarding the reasons for change, among users with "the highest" financial literacy and those with "high" literacy, a high percentage choose the reasons of "dissatisfaction with the products of the previous financial institution" and "assessment of the interest and fees of the present financial institution". On the other hand, among users with "medium" financial literacy and those with "low" literacy, a high percentage cite personal circumstances, such as "to receive salary or have payments deducted" and "to get, change or leave job" as the reasons.

• Attachment: Outline of Survey
• Attachment: Survey Results