Recessionary Consumers in Financial Services

List of Figures

Figure 1: Consumer confidence takes many quarters to recover after the initial plunge

Figure 2: Improving views on the virus doesnot mean concern goes away

Figure 3: Anxiety around the economy dominates consumer thinking and results in low consumer sentiment

Figure 4: Consumers value budgeting and money management functionality but it is rarely top of mind

Figure 5: Change – particularly negative change – drives consumer engagement with their finances

Figure 6: Expectation of change drives consumerengagement with their finances, as seen during the global financial crisis

Figure 7: Investment product holding rises in line with level of affluence across the world

Figure 8: The global financial crisis had a significant impact on customer loyalty and risk appetite

Figure 9: Barclays’ structured product offering appeals to risk-averse investors

Figure 10: Quirin Privatbank addresses investor uncertainty through its webinar and podcast series

Figure 11: Younger investors are notably more open to new investment ideas

Figure 12: Millennials have been eager to capitalize on a market rebound

Figure 13: Younger consumers are more likely to pay increased attention to financial literature in challenging investment times

Figure 14: A need for diversification is driving demand for fund products

Figure 15: Growth in the value ofcard spending will be slow for much of the 2020-21 period

Figure 16: Cash will be squeezed in all economies, accelerating a trend already in play

Figure 17: Consumer credit does decline in times of crisis and recession, but the trend is erratic

Figure 18: In the first quarter of 2020, Australian consumers had started cutting back on major purchases in anticipation of a formal recession

Figure 19: Current account switching has declined significantly in the UK due to COVID-19

Figure 20: After an initial spike, refinance collapsedalong with broader consumer confidence

Figure 21: Consumers have typically valued convenience and transparency in their banking partners

Figure 22: Neobanks were making headway in deposits but lag when it comes to credit

Figure 23: Banks have much more competition as financial advisors and wealth managers

Figure 24: Investor retention requires clear and effective communications

Figure 25: Repairing trust will be critical in the financial advice industry as the global financial crisis showed

Figure 26: E-commerce has received a big boost in consumer awareness and use

Figure 27: A drop in cash usage will reduce the deployment of ATMs and increase POS terminal adoption

Figure 28: Only the Middle East and Africa will see enduring growth in ATMs

Figure 29: General banking activity has trended digital,with mobile banking on the rise

Figure 30: Digital channels dominate key relationship-building activities with customers

Figure 31: COVID-19 has had a significant impact on channel preferences

Figure 32: Some markets are yet to transition from payment cards to mobile wallets

Figure 33: Some markets are yet to adopt contactless while others have leapfrogged to mobile

Figure 34: Younger consumers are more likely to offshore parts of their wealth