The worldwide pandemic has greatly influenced the consumers’ behavior from different perspectives, including banking. This has affected banks in delivering their products and services to end-users as the world embraces the new normality. We have identified 5 things how banks adapt to COVID and the impact of these changes on consumers.
- Digital and technology channels as permanent banking strategy. According to McKinsey’s customer service report, the digital engagement of consumers during lockdown has grown to 20% and people who use cash have lessened to half. Banks are seriously considering the use of digital channels as long-term tools, and not just as a self-service option, on dealing with different banking services.
- Relieving consumers’ fear and uncertainty about digital banking. Banks strive to reassure consumers that they will equally benefit from digital-only transactions by providing them adequate information and guiding them during the entire process of change.
- Banks are expected to provide greater support and security. Banks are now on the move in helping consumers recover from the financial crisis and helping them be more financially prepared in the future through savings, investment, and insurances.
- Health officials view paper money as a potential coronavirus carrier. The World Health Organization advises consumers to use contactless payments and avoid banknotes to prevent the spread of the virus. Countries like Korea and China have started disinfecting and putting banknotes in quarantine. The US Federal Reserve has also mandated banks to practice isolating paper bills for up to 10 days.
- Consumers should as much as possible avoid in-person banking. The Centers for Disease Control and Prevention warns the public to remain observant and practice strict social distancing when visiting banks, particularly people who are visibly sick. Older people, pregnant women, and people with pre-existing health conditions are advised to use the online banking services whenever possible instead of branch visit.
Just like any other business, banks are still juggling important decisions and priorities while considering future permanent plans. But right now, banks are doing the best they can in serving consumers and communities while recalibrating future stance.