07 Oct 2020
Posted in Banking
Post-COVID-19 consumers will remain anxious going forward, says GlobalData
The outlook of consumers around the world is improving, but significant concern remains that will depress consumer credit demand and risk appetite well into the post-pandemic recession, according to GlobalData.
Andrew Haslip, Head of Wealth Management at GlobalData, comments: “GlobalData tracked consumers around the world during the main lockdown periods, and found that consumers’ view of the health crisis in each market studied* steadily improved from the end of March to the end of May as consumers, even in the hardest-hit markets, largely adapted to the new conditions.
“However, in all countries, the vast majority of respondents are still expressing significant concern regarding the pandemic – even when their own country had successfully managed to flatten the curve. Compared to the months of lockdown, June saw little change in concern about the pandemic and fairly low issues with the restrictions on lifestyle and activity that social distancing has necessitated.”
Concern over the state of the economy and the state of personal finances is pronounced, and will not abate until consumers are confident the pandemic is beaten. This bodes ill for consumer confidence, with knock effects for consumption credit and risk appetite. Lenders and investment managers will have to contend with this risk aversion over the rest of 2020 and into 2021, providing features and products that address the lingering unease.
Haslip continues: “Economic uncertainty, more than anything is what will shape consumers’ views and behaviors, depressing demand for financial services and products over the next 12 to 18 months.”
* Countries included in the study: Australia, China, Brazil, Germany, India, Italy, South Africa, Sweden, UAE, UK, US