All crises entail risks. In the case of this pandemic, we also suffer personal misfortunes, a terrible burden we will have to live with. Until we manage to find a cure for the virus, the only certainty when trying to anticipate the future is that changes will occur and that it will be essential to adapt to them. Let us focus on the opportunities they bring to make the most of them.
In a recent McKinsey survey, more than 90% of business leaders consulted believe that COVID-19 will bring new forms of communication with their customers, but barely 20% admit to being prepared to face this. However, three out of four believe that significant growth opportunities are opening up. Innovation and adaptability thus become the two priorities for companies going forward. Two characteristics that have always been the hallmark of banks.
The pandemic is a global crisis that has required exceptional responses of enormous magnitude. These responses, however, have been limited by the different room for maneuver available to authorities and companies, which may condition the magnitude of the initial recovery and its strength over time. These inequalities are more evident between developing and developed countries, despite the fact that the latter have also provided a significant health response, supported families and businesses, and taken measures to stabilize financial markets. Some of the emergency solutions that have been applied generally have worked so well that they will be incorporated into the new normal that we are still designing together. One of them is the provision of digital services, which accelerates the trend toward digital transformation that society was already experiencing.
As the IMF states: “digitalization has been the lifeline to protect the most vulnerable sectors.” COVID-19 has caused a mandatory, rapid, and intense migration from analog to digital technologies across all economies and sectors. In this way, digital solutions have helped alleviate the difficulties of families and businesses and increase the effectiveness of traditional macro policies. Looking ahead, the supranational institution calls on authorities in developing countries to accelerate digital financial inclusion (“the inclusion revolution”) to combat social exclusion and lead to greater growth and prosperity. In developed countries where digital inclusion is high, it has been fundamental to overcome loneliness during the state of emergency, to keep us informed, to access goods and services, both private and public, and also to make remote work possible in numerous activities.
The health crisis has been a true test of the degree of digitalization of Spanish society. In rural areas affected by aging and depopulation, the trend toward digitalization has accelerated during lockdown, making it easier for our elderly to access all types of services, some as essential as medical video consultations, medicine dispensaries, and access to administrative procedures. The Spanish banking sector has functioned perfectly during the crisis, guaranteeing access to digital financial services thanks to the effort made in the past to lead digital financial transformation in Europe.
Customers increasingly demand greater financial digitalization to access products and services from their devices at the time that suits them best. A trend that will only intensify in the future given the enormous benefits it entails. Experience becomes key when demanding digital communication with their bank. In the case of payment services, for example, customers must have all possible options, including cash. And in this way they can freely choose the one they consider most appropriate. The habit of paying with cash contrasts with the security and ease of paying through mobile or card. More than half of Spaniards already regularly use payment methods other than cash to make their payments. And this percentage rises to 80% in the case of the population under 35 years of age.
José Luis Martínez, Spokesperson for the Spanish Banking Association
