We are always looking for insights on Covid’s impact on the consumer and how banks and credit unions should be preparing for the post Covid future. Here are some recent thoughts:
How did banks and credit unions respond to Covid
Kiran Analytics recently conducted a banker survey and found that banks and credit unions used 3 strategies to cope with the pandemic.
Branch Closures | 50/50
Half closed 10 percent or less of branches; half closed 11 percent to 30 precent
Reduced Hours | 2/3
Two-thirds of open branches have reduced their hours
Drive-ups | 80%
80% of branches with drive-up windows shifted all interactions to the drive-up
As for the future of the branch, 3 trends anticipated as the branches reopen.
Where are banks and credit unions investing
The pandemic is also accelerating what was already happening to in the industry. Bank and CU customers need appointments, but they are also getting accustomed to automated banking with minimal or zero human engagement. Investments are being made to adjust to our client’s and institution’s new reality.
Have you invested in any technology in the past 2 months as a result of the impact of coronavirus?
What investments are you considering making in the next 6 months?
Consumer are comfortable with using ATMs and branches
Alexander Babbage publishes a quarterly pulse survey covering over 4,000 US consumers.
Their insight is spot on regarding comfort level of consumers in the pandemic environment. After take-out orders and grocery shopping, using an ATM was in the top 3. Consumers are more comfortable using an ATM or retail branch than going to the gym.
Here is how are some of the industry experts looking at the post Covid future:
Adrenaline created a detailed Roadmap to Reopening the branches. It is designed with to help institutions from preparation to implementation.
https://www.adrenalineagency.com/post-covid-branch-readiness/
In addition, Adrenaline recently launch a dedicated website for banks and credit unions with podcasts, ask the expert, news, data and an outside view.
SLD conducted a survey of 2,000 consumers in April 2020 regarding channel preference, usage and Covid strategies. The key insight was while more impersonal methods of banking (mobile and digital) are the most used today, the phone channel is expected to increase in usage as the pandemic lengthens.
https://www.sld.com/white-papers/covid19-and-retail-bankings-new-reality-report/
Article Sources
- https://www.alexanderbabbage.com/babbagepulse/
- June 2020 Future Branches: Covid, its impact on your digital transformation timeline and the path forward. 50% Banks, 50% CUs
