There is a fundamental shift in customer behavior as they adopt new practices in light of the growing situation. This shift in tone is likely to affect all kinds of businesses, especially the banking sector
Fremont, CA: The COVID-19 pandemic was undoubtedly the most unexpected shock for the start of the decade. Businesses all over the world have taken a tumble, and traditional industrial methods have become obsolete. Organizations are rapidly searching for new ways to run their business and stay abreast as the world prepares for a post-COVID-19 Reality. There are probably very few industries that have remained unaffected by the pandemic. Major sectors such as agriculture, manufacturing & services have been adversely affected. Experts believe that industries like agriculture and industrial sectors will pick up faster as the customers will try to make up for the lost demand by placing orders in bulk. As a more immediate response, the services sectors are expected to react quicker as fewer logistical problems are involved.
Healthcare services, online shopping, retail, content streaming services, and food and grocery delivery services have seen a spike in demand as partial relaxations are brought in different regions. Non-essential services like airlines, tourism, automotive, and oil and gas distribution are expected to be slightly more impacted than essential services that are already on the road to recovery. These essential services include government services, supermarkets and retail outlets, delivery services, banking and financial services.
There is a fundamental shift in customer behavior as they adopt new practices in light of the growing situation. This shift in tone is likely to affect all kinds of businesses, especially the banking sector. There will be a decrease in physical visits to the branch, which will subsequently lead to a rise in online transactions, peer to peer payments, and wallet usages. Countries like China and Italy that were one of the earliest to see the impact of the virus have already witnessed a 20 percent increase in online transactions. Banks need to prepare for this shift and step up their game to convert these online transaction experiences into positive stories for a long term digital adoption.
The response of retail banks to the pandemic will significantly impact its customers, employees, economy, and the world at large. Banks play a vital role in the social life cycle. They manage people’s money, provide loans, guarantee credits, facilitate payments, and are among the most connected institutions to the general public. When there is an immediate requirement for money or uncertain future cash flow, people are expected to increase their dependency on banks for their financing and insurance needs. The government regards some retail banking services like deposits, credits, and payments as essential services. Banks must continue to provide these services without being affected by the ongoing conditions. Managing these services with reduced employee count can be challenging. The solution lies in embracing digital banking.
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