Capgemini Research Institute has come up with a study on COVID-19 and the financial services consumer analyzing on how this crisis changed consumer behavior in the financial sector – from channel preference to investment choices? How do people think the traditional banks and insurers have handled the crisis?
Capgemini Research Institute spoke with more than 11,200 consumers in early April 2020 from 11 countries including India, USA, UK and China and found that pandemic has hastened the shift towards digital payments, increased digital channel adoption, spurred consumer interest in savings and safer investments, and driven customer loyalty towards those organizations that are handling this crisis well.
The key India findings from the report “COVID-19 and the financial services consumer: Supporting customers and driving engagement through the pandemic and beyond” including comparison with global counterparts are below:
The shift towards digital payments in India is particularly striking when we consider how consumer behavior is evolving among segments – such as older consumers – that have traditionally preferred cash for transactions.
80% of the older consumers in India between the age group of 56-60 years show the highest usage of digital payment channels in the next 6 months. This was followed by the age group of 36-45 years at 83%. The global average for the increase in digital payment channels in the next 6 months between the age group of 56-60 years and 36-45 years stood at 43 % and 48% respectively.
Interestingly the report highlights that 80% of the Indian consumers who are older than 66 years and above mentioned that they will increasingly adopt digital payment channels in the next 6 months compared to a global average of 35%.
The study highlights that the usage of digital payments amongst Indian consumers in the current scenario stood highest at 75%, followed by China (63%) and Italy (49%). The global average stood at 45%.
Also, in the next 6 months, the usage of digital payments amongst Indian consumers will be highest (78%), followed by China (63%) and Italy (50%). The global average on increase in usage of digital payments in the next 6 months stood at 46%
India has been ranked highest in the use of digital touchpoints in the next 6-9 months; with strong growth in voice assistants and chatbots as emerging channels of interaction for banking and insurance segment
The impact of COVID-19 on the use of digital touchpoints amongst Indian banking consumers has seen a significant surge from the pre-COVID19 period to the current period and its expected use in the next 6-9 months. According to the study, 57% of the Indian consumers were interacting on mobile app pre-COVID 19, increasing to 67% in the current scenario; and 74% of Indian consumers will prefer interacting over the mobile app in the next 6-9 months. The global average on the mobile app as a digital touchpoint stood during the pre-COVID19 period (47%), current preference (52%), and expected use in the next 6-9 months 55%.
The study further mentions that 40% of the Indian consumers were using voice assistants and chatbots pre-COVID 19 as one of the preferred digital touchpoints for banking, and this will see a surge to 52% currently, and a further increase of 59% consumers preferring to use voice assistants and chatbots over next 6-9 months. This was the highest amongst the countries surveyed.
A similar trend has been witnessed in the insurance segment with 42 % of the Indian consumers using voice assistants and chatbots pre-COVID 19, seeing a surge to 50% currently, and a further increase to 57% consumers who will use voice assistants and chatbots in next 6-9 months for theirs. The usage of voice assistants and chatbots as a preferred digital touchpoint especially in the Insurance segment was highest in India as compared to the other countries surveyed.