Covid-19 has brought about some major changes to how the economy runs today. A study by Capgemini Research Institute provides some insight on how this global outbreak will change the consumer behaviour in financial sector.
Around 11,200 consumers in early April 2020 from 11 different countries which includes India,USA and China were interviewed. And what they found was that people are now shifting toward digital transactions at a much faster pace.
In India, they noticed some major changes across various segments. 80 per cent of older consumers in India between the ages of 56-60 years show some of the highest use case of digital payment channels in the next six months. The 36-45 years age group showed 83 per cent. The global average for an increase in digital transactions in the next 6 months for the same, stood at 43 per cent and 48 per cent respectively. India ranks highest in using digital payments.
57% of Indian consumers used mobile apps pre-covid-19, which has increased to 67 percent, and now this is expected to rise to 74 percent in 6-9 months from now. There was also a surge in the use voice assistant and chatbots.
The study found that 85 per cent of Indian consumers would like to save more in the next 6-9 months as compared to 80 per cent in present and 72 per cent before the pandemic broke out.
Also, it was observed that 77 per cent of the Indian customers preferred to have their savings in safe instruments increased rather than invest in stock market or any high-risk financial products for that matter, in the next the 6-9 months. Currently it stands at 73 per cent and before Covid-19 broke out, it was at 66 per cent.
Compared to its global counterparts, insurance coverage demand is growing and also the highest in India. It was observed that 80 per cent of the consumers wanted an increase in Life insurance coverage & in the next 6-9 months it is expected to rise to 83 per cent. In the pre-Covid period, it was at 70 per cent.
Health Insurance saw a similar scenario wherein 80 per cent of the customers wanted an increase in Health insurance. In the next 6-9 months it is expected to rise to from 84 per cent; in the pre-Covid period it was at 71 per cent.
