Managing Director & Senior Partner
The pandemic has proven viral in all respects, propelling changes in banking within three months that would normally take three years to achieve. But while institutions may have been thrust into this transformation, those that harness this fast-forward moment can take sales, service and business resiliency to new levels—at a scale and pace capable of unlocking profitable growth for years to come.
BCG’s 2020 Retail Banking Excellence Benchmark (REBEX), which surveyed 17,600 banking customers in 30 countries including Canada, confirms that the pandemic has created a singular moment for banks. Canadian customers have gone digital and they are not coming back. Trends that were gathering momentum before the crisis have now solidified.
The following three illustrate just how much the retail banking landscape is transforming.
These findings are good news. They mean behavioral changes long anticipated by banks have materialized. They confirm that digital channels offer an unprecedented platform to meet customers’ banking needs. And they show that banks can work fast when they need to.
For Canadian banks that want to claim strong advantage now and in the postcrisis period, here are the no-regret actions to take.
Recent history shows that there is advantage in adversity. In the last four downturns, companies that took decisive action in making sweeping internal changes drove sales growth and margin markedly higher. But only one in seven businesses typically seize the opportunity. Which choice will your bank make? Seize advantage or shy from it?
Banks that are ready to say “yes” will prioritize the above moves and create a new and faster operating rhythm. That rhythm will allow them to fast forward into the new era of retail banking and take business and customer performance to new heights.
BCG’s Retail Banking Excellence Benchmark (REBEX) team conducted Pulse surveys of 17,600 retail banking customers across 30 countries including Canada between mid-May and mid-June 2020, n=381 for Canada to measure the COVID-19 impact on retail banking consumer behavior globally. REBEX is BCG’s comprehensive end-to-end decision support tool for retail banking which combines proprietary peer-based benchmarking with consumer insights from 70,000+ consumers in more than 25 countries. REBEX also offers deep dives in areas key to bank performance like cost, digital adoption, network performance and many others.
For more details on our REBEX product, please contact the authors.
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