The pandemic may be receding, but its effects on consumer banking aren’t
- Covid has changed the consumer’s relationship with cash, savings, and digital banking.
- It’s becoming increasingly likely that these changes will far outlive the pandemic.
Over the last 18 months, it’s become fairly obvious that the pandemic has caused major changes in how consumers perceive and interact with cash, savings, and digital banking tools. What’s perhaps been less obvious is how long-lasting these changes will be, and whether they will outlive the pandemic.
New research shows that even as people around the world get vaccinated and return to in-person activities, the pandemic-induced changes in their financial behaviors continue to persist, and in most cases grow even stronger.
A recent study conducted by Chase examined consumer behaviors among over 2,000 men and women between the ages of 18 and 57+, with a particular focus on digital banking tools, cash usage, contactless payment methods, savings habits, and the demand for personalized banking services.
Cash continues to lose its hold
Even as the pandemic recedes, cash still seems to be losing popularity, and not just due to Covid-related health concerns. 13% of both Baby Boomers and Gen Z admitted they wouldn’t feel comfortable making cash-based transactions again, even after the pandemic is over.
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