KMPG has conducted a survey with 12 thousand 334 participants from 12 countries about their “new reality”. Consumers, who have adopted the ease of digitalization, will increase their interaction with digitally savvy and fast-paced companies. Due to the financial challenges of Covid-19, value for money is the most important factor for consumers, with trust being the second most important factor

The effects of COVID-19 continue to be felt around the globe and organizations will need to anticipate and prepare for the changes in their consumer’s needs, behaviors and preferences. Consumers who are financially constrained due to the pandemic but more advanced in their use of digital technologies and more thoughtful and selective in their decision-making are keen to see COVID-19 as an opportunity to reset values in the world. A survey conducted by KPMG in 12 countries with 12 thousand 334 people identifies focus areas for organizations to fight against the challenges of the new reality in terms of their decision-making processes and new plans.

Kerem Vardar, Financial Services Sector Leader at KPMG Turkey, commented on the findings of the survey. “The economic impact of COVID-19 will influence behaviors for some more time. Although trust is not a new concept, it has gained a different meaning during Covid-19.  For the first time, consumers have seen organizations put the well-being of their customers and their employees ahead of profit. On the other hand, with the temporary closure of branches across the world during COVID-19 has brought a lasting change in how consumers will interact with their banks. Most of the consumers will continue to use website and app channels more, especially for interactions relating to purchasing high-value products or savings accounts,” he said.

Key findings of the survey include:  

The new consumer embraces the ease brought by the digital channels. Consumers who prefer digitally savvy companies, also list trust in brands as first priority. Younger consumers are concerned about a company’s environmental and social practices.
The majority of customers are now comfortable using online channels. They are more active in online shopping, contactless delivery and online shopping.

Younger consumers below the age of 45 are more likely to turn towards those channels they use most to communicate with their friends and families

Overall, there is a threefold increase of consumers claiming they will use social channels as their main means of communicating with organizations in the new reality post-COVID-19.
Consumers believe that they will use cards and digital wallet options more than cash for future purchases.

Digital banks are the main beneficiaries

When buying from banks, value for money is the most important factor for consumers with 46 percent. Personal safety (45%), trust in the brand (45%), and customer experience (41%) are other important factors for consumers.

Services that make them feel that they get value for their money and prices (interest rates) are still big determinants of bank selections.

Ease of access (personal safety) is a priority for consumers alongside better functionality on websites and apps. Proactive communications with regards to the effect of COVID-19 on their service offering is another factor affecting customer choices.
The research shows a net improvement in trust for own bank (+15%), with virtually all consumers saying they trust their bank at least as much as before COVID-19 (96 percent).
One in 10 consumers are considering switching banks as a result of COVID-19, and of this group, four in 10 are more likely to move to digital banks.

Trust remains strong in the insurance market

Trust in insurance companies appears not to have been damaged.  However, a third of consumers request proactive communications on the effect of COVID-19 on the service offered and want to understand how exactly their policies have been affected and what they are covered for and what they are not.

Efficient processing of claims should be the number one priority for insurance companies according to consumers (39%). Innovative products follow as second.

COVID-19 has driven a number of insurance consumers (41%) to review at least one current policy. 27% acquired life insurance policies and 26% considered acquiring an insurance policy.
When the participants were asked “Thinking about the next time you choose a policy, which of the following do you think will be most important in your selection?”, 51% have responded that ‘Price’ would be the most important one. 42% stated that personalized products and services would be the most important factors, while 39% said they would prefer policies that are payable in case of future pandemics