Market Insight

Evaluating the impact of COVID-19 on retail banking technology

April 09, 2020  | Subscribers Only

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The business impact of the COVID-19 pandemic will be significant for retail banks. While banking remains open as a key sector, the broader economic shock of a lockdown is driving hyperinflation in both business and consumer loan delinquencies, with operating income and profitability set to be severely depressed for at least the rest of this year. Concurrently, nonroutine customer support requirements have escalated, while workforce strength is impeded by isolation requirements. As with the response seen during the financial crisis, technology spending for 2020 will no doubt be impacted by immediate cost control measures, as banks seek to conserve capital, manage liquidity, and mitigate damage to profitability. However, COVID-19 will conversely accelerate digital transformation, driving laggard customers to use digital channels while forcing the workforce to shift to modern working practices.

Research by Market
Transformative Technologies
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