Digital banks are the main beneficiaries
Not surprising, our recent pulse survey found value for money and personal safety are major priorities for bank consumers, alongside ease of access including better functionality of the banks website and apps, and proactive communications with regards to the effect of COVID-19 on service offerings.
In retail banking, the trend towards increased trust is definitely benefiting 'new' banks (those less than 15 years old that have both branches and digtal offerings) and digital only banks, with a net positive effect, double that of traditional banks.
Trust in the brand (45 percent) is one of the key attributes for the banking industry, with the research showing a net improvement in trust for own bank (+15 percent), with virtually all consumers saying they trust their bank at least as much as before COVID-19 (96 percent). Chinese and Brazilian consumers trust banks to a higher degree, whereas those in France less so.
The rise in digital usage during COVID-19 is expected to continue, requiring banks to re-assess their channel mix to ensure robust and safe omni-channel experiences.
Consumers are telling us that even after current restrictions are lifted, they will continue to use website and app channels more, especially for interactions relating to purchasing high value products or savings accounts. However, many anticipate still going to a branch — up to a third will return to doing so, and they expect their safety to be of paramount importance to banks.
What does this mean in the new reality?
Established banks must work harder to compete on trust. New and digital banks should look to promote those key purchase drivers which play well to their offer (e.g. digital security, ease of use, as well as value for money).
Banks need to re-assess their channel mix: has the purpose that each channel serves changed? Can banks deflect investment from traditional channels into a more robust, consumer-centric omnichannel offering?