Which trends has COVID-19 triggered or accelerated and how will banking evolve in the future?
How will we look back on 2020? For many it was the year of lockdowns, life shifting online and unimaginable disruption. We’ve seen economies around the world brought to a virtual standstill and are still navigating a global health crisis that has left very few nations unscathed.
Against this tumultuous backdrop, we set out to uncover how people are adapting so that we can better serve their needs in the future. We asked over 36,000 individuals from 12 diverse markets in our footprint how they’ve changed the way they earn, spend and manage money in the wake of COVID-19.
We’ve found that, despite uncertainty and financial hardship, there is optimism and resilience. Confidence is strong across markets and people believe we can overcome the challenges brought on by the pandemic – and adapt and thrive – if armed with the right tools and technology. The pandemic has sped up changes that might otherwise have taken years. Many people are now enthusiastically embracing new digital ways of managing their money, finding a greater ease and convenience in doing so. Spearheading this adoption is a generation of younger consumers, who are emerging from the crisis more mindful of their finances, while enthusiastically adopting new ways to generate income and manage their money. They may be among the hardest hit financially, but they are confident in their digital skills and ability to prosper in the future.
This report explores the trends triggered, or hastened, by COVID-19, and looks at how banking may evolve from this point onwards.
Many of the trends highlighted in this report were bound to materialise at some point, but COVID-19 has drastically accelerated them, spurring on the integration of digital into our lives. Despite the all-encompassing challenges that have unfolded in its wake, the pandemic has also presented an opportunity to build a digital financial world that is inclusive, allowing better and faster access to banking. Banks and fintechs have an important role to play in seizing this opportunity. As a global financial services provider, this research is invaluable to us. Understanding our customers’ evolved needs will help us serve them better and, ultimately, support them in realising their goals, whatever the headwinds.
Ben Hung, CEO, Retail Banking and Wealth Management