Covid's Impact On Banks

This report from YouGov just popped into my emails and I thought it was pretty interesting…

It looks at the percentage of people who say they will avoid bank branches in the future thanks to coronavirus, and then the percentage of people who will choose to use a digital service wherever possible.

56% of people in the US would choose to use a digital service like online banking wherever possible, 67% of people in GB, but this increases to a whopping 80% for people in India & Mexico.

I wonder why places like India and Mexico are more inclined to use digital banking services? Any ideas?

For India, I guess, it’s in part because of India’s demographics. Younger people are more likely to use digital banking services.

Also, widespread adoption of digital payment tools like UPI has contributed for an increase in people’s confidence on digital banking. The adoption was accelerated by the availability of cheaper data plans.

Really interesting! Whatsapp is huge in India as well isn’t it?

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WhatsApp is definitely huge but anecdotally I am yet to see widespread usage WhatsApp’s peer to peer payment feature. PhonePe and Google Pay seem to be doing much better based on official figures as well.

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