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The acceleration of residential digitization.
In the retail sector, ING analysts expect widespread use of digital financial technologies. Many simply have no choice now but to use digital channels in banking, from video chat calls to secure document sharing to digital contracts or touch payments, to minimize the number of contacts. Video identification, for example, could quickly become widespread, ING analysts believe. In the medium term, this could accelerate the tendency to abandon the accounts.
Focus on financial inclusion.
The epidemic has also drawn attention to social inequalities, think of Singapore, which was a model country in the fight against the coronavirus, and the virus suddenly began to spread in a strong wave among migrant workers living in modest conditions in a divided society. Stories like this and the like again draw attention to those living in extreme poverty and those who have no connection to the financial system.
Attitudes towards data sharing are changing
Until now, regulators and the public have been concerned about the protection of personal data, however, to stem the epidemic, several governments are also using mobile phone location data and other personal data in defense, which is proving to be very Useful. This can change attitudes towards data management at the social level. Also, since credit risks and debtor ratings have become a more difficult task, and many still need quick financial help, the debtor ratings, which have also been received with disgust and use external data, may be possible. , are more accepted.
Greater government involvement
Governments and central banks have turned to drastic means of banking around the world, especially loans, where they encourage loans with cheap resources and state guarantees, and improve the financial situation of debtors with repayment moratoriums. Even in the best case scenario, it could take years for the state to withdraw from the broader financial and economic spheres, and once the mess is gone, a reinterpretation of the state-market division of labor will be necessary. .
Less exposure to the outside
Both state and market participants will seek less complex supply chains after the epidemic subsides, they will want to achieve less exposure and foreign dependency, because the coronavirus epidemic has shown that the fragility of these chains is crystal clear. At the same time, due to the widespread operation of the home office, governments have also recognized the importance of developing fast network infrastructure (5G) and the importance of digital platforms in the life of a society.
The financial sector has become a large cross-border business in the world, from IT to financial activities and supervision. International, or often global, interdependence will be regulated even more strictly by supervisors. The share of great technology in finance also falls in this area.
cyber security
Also, the widespread use of telecommuting has highlighted the problem that connecting home and corporate networks is not an easy task from an IT security perspective, and can open up many vulnerabilities, just think about the risks of blackmail or data leak virus . Currently, hackers are likely to infiltrate vulnerabilities and wait for them to monetize later. Because of all this, international cyber defense action may be necessary.
How does the coronavirus epidemic rewrite finances? Is digitization increasing? Who will be the winner and loser of the walk? Top banking and insurance executives will discuss all of this at our ONLINE conference on May 6. Sign up here!
Cover image source: Getty Images.
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