The corona virus has been gripping us for months. One thing is certain: the pandemic is changing the way we live and work. What is the lasting impact on financial services? What will happen to the branches of large banks and how important is personal contact for consumers? In this blog you will find a bit more in depth.
1. Digital banking is gaining momentum
In recent years, we have already seen significant growth in digital payments. This is accelerated by COVID-19: consumers are becoming more dependent on digital transactions and are also reluctant to use cash, for fear of transmission of the virus. In my personal perception consumers often opt for digital payments. This includes credit cards, pin payments, internet banking and mobile payments.
Within the financial world, the effect of the corona crisis is like a turbo on an already accelerated engine of change. In some big countries where ICT is well developed, COVID-19 has only strengthened this position more and more. This number of contactless and mobile payments has further increased in recent months. Mark my words that this situation will continue.
2. Need for personal contact remains
The number of physical offices and branches in digital services was already slowly declining: the lockdowns worldwide are making an additional contribution to this decline. In my opinion I think big financial institutes will accelate the reduction of their number of branches, and that some branches that are currently closed will no longer open due to the crisis.
But believe me, remarkably, consumers still need personal contact. Otherwise I don’t think that this will return to the old normal.
Consumers probably still want personal, face-to-face contact when seeking advice on complex financial products and transactions.
Nevertheless, the pandemic has shown how important it is to have digital services in order and to familiarize customers with them.
3. More savings, more security
Consumers take less risk with their money. Before the corona outbreak, a large amount preferred to save their money. We also see that consumers are more oriented towards their life, household effects and health insurance are some of the things playing these days.
4. Loyalty in question
The way financial services firms deal with the corona crisis is impacting consumer loyalty. People are changing their financial strategies on the run. Many of them are switching to BigTechs and Fintechs.
Major financial players must ensure that they continue to bind their consumers in the coming period, for example through new products and services or an improved customer experience. Otherwise, there is a good chance that young consumers in particular will switch to new digital alternatives.
Stronger from the crisis
The way in which organizations act in this corona crisis determines their image among consumers. Not just in the short term: this picture lingers for months or years. It is now a matter of helping insecure consumers with their financial issues. This is the perfect opportunity to think about sustainability policy. By investing in digitization, you increase customer loyalty and your organization will emerge stronger from the crisis.
