Banking, Finance, and Insurance + COVID-19

Interested in some insights on the Banking industry during and caused by COVID-19? Creatives On Call has kept an eye on this industry and would love to unpack some of our findings. Additionally, we work with a plethora of creative professionals that specialize in the many specific areas of this specific industry who could help to hit the target audience for your business. Reach out, we’d love to chat. 

In recent posts, we’ve taken a look at how the pandemic has impacted various industries, how they are managing, and what it means for us as consumers and businesses.

This week, we share our findings on the banking, finance, and insurance industries to see what changes have been driven by COVID-19 and where consumers and companies can step in to help. Creatives On Call has put together a high-level overview of these industries and what we can expect to see in the near future.

Banking

COVID-19 has affected every industry. Has its impact accelerated the trends that were already on the rise? This is the case with the banking industry.

The banking industry has seen a growing trend in shifting to digital and mobile banking over the last several years. This year, in our research, evaluating the best mobile banking apps for UX, we found that 96% of people surveyed preferred mobile banking to a traditional branch or ATM banking.

With the surge of consumers adopting the shift to digital banking before COVID-19, is the future of banking digital? If so, what does this mean for traditional banks?

During stay-at-home orders, every branch location shut down. As a result, many banks saw an increase in digital and mobile banking, including an 84% increase in mobile check deposits in May for Citigroup, causing many traditional banks to consider closing branch locations to further reduce operating costs.

Partnering with Statista, Forbes conducted a study to measure the best banks in over two dozen countries. Proving digital-first banking is taking over, the survey results showed online-only banks Discover, Capital One, and Chime ranked higher than big names like JP Morgan Chase and Citigroup. Further, digital-only banks such as Ally and Chime can compete with more prominent names by offering higher interest rates and fewer fees than many traditional banks.

As a top strategic priority in the last two years for retail banks, The Financial Brand's Digital Banking Report Research survey reveals that financial services organizations focus is on improving their digital customer experience.

As the banking industry continues to evolve, traditional banks need to invest in their technology, evaluate their mobile UX, and continue to partner with FinTechs to bring them into the digital banking era.

Finance

The World Bank is calling for the “deepest global recession in decades” due to COVID-19. With millions of Americans on unemployment, the U.S. economy hasn’t been hit this hard since the Great Depression. According to the World Economic Forum, the U.S. GDP has fallen to 39.2% annualized rate, the largest decline since 1947.

Productivity came to a halt in April, and now though U.S. activity has resumed, it’s left companies with limited working capital and cash flow disruptions. Companies need to keep a close eye on their cash reserves and liquidity position to survive during a recession. Scenario planning and evaluating short term cash needs are essential.

Banks can step in to provide thought leadership to companies in crisis mode. They can lend their expertise and services in planning and cash conservation methods. And small businesses can look to banks to automate their accounts receivables process to improve cash flow and reduce outstanding invoices.

Purchasing and supporting local and domestic companies is crucial for our economic recovery. Cash is king, and on the brink of a recession, it’s imperative to keep it flowing for everyone to succeed.

Insurance

The insurance industry helps manage risk and soften losses during times of economic turmoil. Insurance touches a wide variety of sectors, home, health, life, travel, auto, and business.

The virus has impacted all of the different sectors of insurance. Reuters reports insurance claims grew with COVID-19.

Insurers are having to adapt quickly to meet the demands of inquires and claims. Life insurers face the most challenges right now, monitoring mortality rates, and being impacted by the markets.

Like many other employers, insurers are grappling with an increase in workload and a new remote workforce. With more people working remotely to man call centers, claims and support services, insurance companies have to lean into cloud technology.

Digital workflows and increased bandwidth are required to keep up with demands. IT companies can help fill in the gaps to support their remote workforce during this time and provide them with tools for increased capacity and protection against cyber attacks.

Insurance companies need to be in constant communication to help their customers and provide clarity on coverage. Like every business, they have to move quickly, where they might not have been as agile in the past. Consumers should be patient with insurers as they help to assist policyholders with their questions and claims.

Powered by Banks & Technology

COVID-19 has accelerated reliance on technology and introduced digital-first services. Banks and insurance companies have to rethink their strategies to serve customers and become more nimble to react to market and lifestyle changes.

Consumers should give companies grace as they sort through these new challenges brought on by the pandemic. Banks and technology companies can support their clients with advanced services and welcome new partnership opportunities. If everyone works together, we can recover and learn from this experience, being better prepared for the future.

This is a time for marketers to step up to the challenge and get creative in meeting current demands and behavior changes. Creatives On Call call support your business through this. Contact us here.  We have Marketing professionals ready to start in areas including:

• Strategy & Advisory

• Design and Production

• Content Creation & Management

• Customer Engagement & Experience

• Learning & Knowledge Management

• Digital Technology & Transformation

Learn more here.