Science & Technology

Which countries will suffer most from coronacrisis

GlobalData’s COVID-19 Banking Severity Impact Index examines the level of secured and unsecured debt and emergency savings that self-employers possess

COVID-19

Which countries will suffer most from coronacrisis. Source: pixabay.com

The level of COVID-19 lockdown and number of cases shifts Spain and Italy to the top of GlobalData’s COVID-19 Banking Severity Impact Index.

Besides, the percentage of the self-employed population and those having savings of up to $15,000 make Spain score the highest, followed by Italy and Germany.

According to the report, banks will stay open during even the most severe lockdowns. Although, they should use this as a chance to push through digital transformation to stay in touch with customers.

At the same time, many banks won’t be able to handle higher numbers of telephone banking customers, thus leading to long waiting times for customers.

The report highlighted there will be a significantly high number of vulnerable personal and business banking customers worldwide during the next few months. Since they will need to contact their banks, only the banks with a strong digital presence will be best-placed to help and support their customers amid the crisis.

The main reason many customers don’t try a new task online is that they have never had to. COVID-19 will force more people online and force them to do a broader range of tasks. This is a clear opportunity to win over holdouts with superior digital experience and turn off long-standing physical services with limited reputational damage
Sean Harrison, Lead Retail Banking Analyst at GlobalData

We’ve reported that changes in consumer behavior might lead to e-payments boom. This way, online, cashless, and mobile transactions would see long-term growth since people change their spending behavior to avoid contact with the disease.

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