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at a glance 17

Consumers will proceed their journey with ‘digital’ brands

KMPG has conducted a survey with 12 thousand 334 partic-
ipants from 12 countries about their “new reality”. Consum-
ers, who have adopted the ease of digitalization, will increase
their interaction with digitally savvy and fast-paced compa-
nies. 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 preferenc-
es. Consumers who are financially constrained due to the pan-
demic 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 ence (41%) are other important factors for consumers.
with 12 thousand 334 people identifies focus areas for or-
ganizations to fight against the challenges of the new reality • Services that make them feel that they get value for their
in terms of their decision-making processes and new plans. money and prices (interest rates) are still big determinants of
bank selections.
Kerem Vardar, Financial Services Sector Leader at KPMG
Turkey, commented on the findings of the survey. “The eco- • Ease of access (personal safety) is a priority for consumers
nomic impact of COVID-19 will influence behaviors for some alongside better functionality on websites and apps. Proac-
more time. Although trust is not a new concept, it has gained tive communications with regards to the effect of COVID-19
a different meaning during Covid-19. For the first time, con- on their service offering is another factor affecting customer
sumers have seen organizations put the well-being of their choices.
customers and their employees ahead of profit. On the oth-
er hand, with the temporary closure of branches across the • The research shows a net improvement in trust for own
world during COVID-19 has brought a lasting change in how bank (+15%), with virtually all consumers saying they trust
consumers will interact with their banks. Most of the con- their bank at least as much as before COVID-19 (96 percent).
sumers will continue to use website and app channels more,
especially for interactions relating to purchasing high-value • One in 10 consumers are considering switching banks as a
products or savings accounts,” he said. result of COVID-19, and of this group, four in 10 are more
likely to move to digital banks.
Key findings of the survey include:
Trust remains strong in the insurance market
• The new consumer embraces the ease brought by the digital • Trust in insurance companies appears not to have been
channels. Consumers who prefer digitally savvy companies, damaged. However, a third of consumers request proactive
also list trust in brands as first priority. Younger consumers communications on the effect of COVID-19 on the service of-
are concerned about a company’s environmental and social fered and want to understand how exactly their policies have
practices. been affected and what they are covered for and what they
are not.
• The majority of customers are now comfortable using on-
line channels. They are more active in online shopping, con- • Efficient processing of claims should be the number one
tactless delivery and online shopping. priority for insurance companies according to consumers
(39%). Innovative products follow as second.
• Younger consumers below the age of 45 are more likely to
turn towards those channels they use most to communicate • COVID-19 has driven a number of insurance consumers
with their friends and families (41%) to review at least one current policy. 27% acquired
life insurance policies and 26% considered acquiring an in-
• Overall, there is a threefold increase of consumers claiming surance policy.
they will use social channels as their main means of communi-
cating with organizations in the new reality post-COVID-19. • When the participants were asked “Thinking about the next
• Consumers believe that they will use cards and digital wal- time you choose a policy, which of the following do you think
let options more than cash for future purchases. will be most important in your selection?”, 51% have re-
Digital banks are the main beneficiaries sponded that ‘Price’ would be the most important one. 42%
stated that personalized products and services would be the
• When buying from banks, value for money is the most im- most important factors, while 39% said they would prefer
portant factor for consumers with 46 percent. Personal safe- policies that are payable in case of future pandemics
ty (45%), trust in the brand (45%), and customer experi-