During these times, financial services companies will need to quickly develop new customer experiences, products, and communications to meet changing behaviors and demands.
The recent Logica Future of Money snapshot reports on income and on savings and debt show Americans making necessary changes to address the impact of the novel coronavirus on their financial situation. Behavioral changes, like mobile banking and an increased focus on savings, are anticipated to last beyond the pandemic. In this third wave, we take a closer look at the financial behavioral changes seen in the time of COVID-19 that impact customer experiences and brand engagement.
The financial and banking behavioral shifts consumers are making now will keep demand high for improved financial experiences when it comes to the way they bank and invest. Financial companies will need to pivot to meet their customers. These could include ways to win client loyalty through fee reduction, interest-bearing savings products, favorable credit terms and communications that highlight community and employee support. Some key findings from this wave of our study include:
- Half of Americans (51%) report that their banking behavior has changed since the new Coronavirus.
- One quarter (25%) are using their mobile banking app more. They are doing more transfers with their mobile app (21%) and more deposits (13%).
- While many Americans have been hit hard financially, some Americans (10%) are investing in the stock market more right now and are talking to a financial advisor or planner more (9%).
We also see that the majority of Americans (75%) want help from their financial institutions.
- Ways financial institutions can help fall into three main categories:
- Impact to their wallets like payments, fees, interest (61%)
- Service and advice (45%)
- Communication (21%)
In this segment of the Future of Money study, partner KNow Research conducted qualitative in-depth dyad interviews to gain additional insights into Americans’ financial experiences right now and to highlight study participants’ stories on how COVID-19 has impacted them financially. When asked about what they see their financial institutions doing, one mom from New York told us about how meaningful it was to her that her bank waived fees.
“I got an email from my bank saying they’re going to waive everything in terms of fees, charges, ATM wherever you need to use one for three months. That really makes a difference.” —Mom, New York
Americans’ mobile banking behavior is on the rise:
More Americans are putting money into the stock market:
They are talking to financial advisors more:
Help Americans protect their wallets:
- Americans are changing their financial behavior in significant ways, including mobile banking.
- Many changes to financial behavior because of the coronavirus pandemic like mobile banking, focus on savings, expense management, and leveraging credit are likely to impact consumer needs for a long time to come.
- Americans are looking to financial institutions to help them manage through this time in significant ways, including ways that directly impact their wallet (fees, rates), service levels, and communications.
And here’s what a couple from Nevada said about the communications they received from their bank, highlighting how important empathy and transparency are right now.
“Our bank sent an email that hit on every point that someone impacted would feel. It said: ‘We know some people are experiencing unemployment, not being able to file and get checks. We feel your pain. If you need a deferral on credit payments we are here for you and willing to defer for 90 days. It’s fine, don’t panic, contact us with questions.’ That was really nice of them! It’s comforting and they’re trying to give us a sense of security.”
To hear more about the study, what’s coming up, and schedule time for a full presentation, email firstname.lastname@example.org.
Click here for the prior Future of Money special report on income.