u.s.a.: the new normal 2020 consumer banking during a

U.S.A.: The New Normal 2020 –Consumer Banking during a Global Pandemic

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September 2020

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R F i G R O U P – U S A : T H E N E W N O R M A L

5

Agenda

1. Research Methodology

2. The New Normal: Consumer Banking during a Global Pandemic

• Consumer Sentiment

• Current Financial situation

• Consumer actions as a result of COVID-19

• Recent changes to income as a result of COVID-19

• Anticipated changes to income because of COVID-19

• Level of concern about personal finances

• How banks can help during the COVID-19 pandemic




6

Methodology

• Fieldwork for the H1 2020 US Priority & Retail Banking Council survey council was conducted online in early 2020:

• In total 2,001 consumers were interviewed in March & April of 2020 (03/13 to 04/05)

• Note: The first U.S. case of the COVID-19 virus was reported on January 20th in an American citizen traveling from Wuhan, China, to his home in Washington state.1 The 100th case of COVID-19 was reported on March 2nd.2 By March 10th, there were 1,000 reported cases.3

• Respondents form a nationally representative sample which is then boosted to ensure an even split between the Mass Market and

Mass Affluent segments. The nationally representative sample has been used wherever the total market is reported. When

reporting on the affluent market the boost has been included.

• Local market affluence criteria has been used in this report as follows:

• Mass Market: (n=1,001) [$100,000 or less in household asset]

• Mass Affluent: (n=1,000) [$100,000+ in household asset]

Note: 1 The New England Journal of Medicine, 2 CNN, 3 The New York Times


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The New Normal

• Consumer Sentiment

• Current Financial situation

• Consumer actions as a result of COVID-19

• How banks can help during the COVID-19 pandemic

• The guidance and support provided by primary banks during pandemic




8

Consumer actions as a result of COVID-19In accordance with recommendations put forward by the World Health Organisation, those over 65+ tend to show greater levels of social distancing.

Base: Retail banking customers (H1 2020: 18-24: n=189, 25-34: n=235, 35-44: n=228, 45-54: n=239, 55-64: n=190, 65+: n=319, Total: n=1,400)Note: ↑ - Significantly higher than other segments ↓ - Significantly lower than other segments

64%59%

54%49%

30% 26%

0%

20%

40%

60%

80%

100%

I sought to minimise

contact with large

crowds/gatherings

I have placed greater

importance on personal

hygiene

I tried to avoid eating or

dining out

I tried to reduce in-store

shopping

I have stockpiled food and

other essential items

I had to make new

arrangements in relation

to employment

What are some of the ways the pandemic has impacted your life over the past 6 months?

By Age18-24 25-34 35-44 45-54 55-64 65+ Total

24%17% 16% 16%

5%11%

0%

20%

40%

60%

80%

100%

I tried to minimise usage

of public transport

services

I sought to postpone or

change my travel plans

I have started wearing a

face mask

I tried to minimise usage

of private hire vehicle

services

I sought additional

insurance coverage

None of the above




10%

11%

11%

9%

10%

8%

8%

6%

7%

7%

6%

4%

12%

13%

11%

10%

10%

8%

7%

5%

6%

6%

6%

4%

19%

12%

11%

11%

10%

6%

4%

8%

4%

5%

4%

4%

2%

42%

36%

33%

31%

30%

22%

20%

19%

18%

17%

16%

12%

3%

0% 10% 20% 30% 40% 50%

Provide you with reassurance that your bank is stable and your money is secure

Additional assistance on other non-banking related needs

Credit card discounts

Greater flexibility on loans repayments

Provisional reduction in investment fees

Reduce borrowing costs by temporarily discounting interest rates

Provide reassurance that payment holidays won't negatively impact credit rating

Provide you with a mortgage holiday

Complimentary insurance (i.e. benefits/payouts for quarantine/hospital)

Bank account bonuses to cushion the economic downturn

Financial planning/advisory/managing personal financial risk

Proactively contact you to discuss your investments

Other

How can banks help you to cope better with such a pandemic?

Third most important Second most important Most important Total

9

How banks can help during the COVID-19 pandemicRetail banking customers want reassurance from their banks about the security of their money and the stability of the bank.

Base: Retail banking customers (H1 2020: Total: n=1400)




10

Satisfaction with MFIs response during pandemicOn average, two-thirds of American retail banking customers are extremely satisfied with the measures taken by their main financial institution during the pandemic.

Base: Retail banking customers who are aware of relevant measures taken by MFI (H1 2020: Bank of America: n=306, Wells Fargo: n=186, Chase: n=121, Capital One: n=51, PNC Bank: n=38, Citigroup: n=34, U.S. Bank: n=26*, BB&T: n=30, USAA: n=36, HSBC: n=36, Total: n=1,019)Note: ↑ - Significantly higher than other segments ↓ - Significantly lower than other segments

2% 4% 6% 2% 3%2%4% 2%

3% 6% 2%6%

10%4%

8% 11% 3% 19%13%

6% 3%

8%

17%

16%20%

16%16% 21%

8% 17%

8% 17%

16%

73%65% 69%

75% 71% 71% 73% 70%

86%81%

71%

78% 78% 69% 77% 59% 76% 59% 70% 86% 92% 73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bank of

America

Wells Fargo Chase Capital One PNC Bank Citigroup U.S. Bank BB&T USAA HSBC Total

On a scale of 0-10, how satisfied are you with measures taken by

your main bank in helping you cope with the pandemic?

Consumers who are aware of relevant measures taken by MFI – By Main Financial Institution

Extremely dissatisfied (0-2) Dissatisfied (3-4) Unsure (5) Satisfied (6-7) Extremely satisfied (8+/10) Aware of any relevant measures taken by MFI



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