The global COVID-19 outbreak has created unexpected disruption, forcing UK banks and customers to change the way we live, work and interact.
Consumers who were already struggling with finances could be worse off because of COVID-19—75 percent of individuals do not have savings to cover three months of living expenses, 20 percent of the adult population are already over-indebted and 50 percent of the population lack confidence in their financial decision making.
At the same time, the closure of office premises has shifted many employees to remote working, social distancing has increased digital engagement, restricted mobility has led to a boom in e-commerce and “stay at home” policies have given rise to new propositions.
The road to the "new normal"
To lead customers through and beyond this crisis, and to emerge in a position of strength, UK banks should resist the temptation to revert to the old ways of working. Now is an opportunity for banks to build trust with customers while doubling down on the strategic investments that accelerate their progress to the future of banking—this will not only protect short term business health but will also provide the foundation for competitively advantaged growth.
We believe this can be done across the Now, the Next and the New Normal horizons in three targeted areas.
The future of UK banking after COVID-19
In the coming months, UK banks will play a pivotal role in moderating the economic damage caused by this crisis. While it is encouraging to see early response measures deployed at pace, COVID-19 also presents an opportunity for banks to accelerate their journey towards the “new normal”.
It is a long game, but with a clear plan, banks can emerge as leaders. The future bank will be purpose-driven, value-generating and operationally innovative. As your business partner, we stand ready to provide whatever support you may need.