TECH BUYER Apr 2020 - Tech Buyer Presentation - Doc # US46204020
COVID-19 Impact on Banking in the United States
By: Steven D’AlfonsoResearch Director, Compliance, Fraud and Risk Analytics Strategies, Marc DeCastroResearch Director, Consumer Banking, Aaron PressResearch Director, Worldwide Payment Strategies, Jerry SilvaProgram Vice President, James WesterResearch Director, Worldwide Blockchain Strategies
This IDC Tech Buyer Presentation offers initial analysis on the impact of the COVID-19 pandemic on the U.S. banking industry. The presentation uses data collected over the past 30 days on consumer perceptions, behaviors, and expectations through IDC Insights' Cross-Industry Consumer Response to COVID-19, March 2020. In addition, the presentation highlights IDC's initial estimates of the impact of the pandemic on overall IT spending in 2020 across all industries (see IDC Blackbook Live Edition, March 2020). IT spend specific to banking will be released over the next few weeks.
The COVID-19 crisis has hit other industries like travel and retail particularly hard, harder than the financial services industries. But banks are being challenged by everything from moving to remote working environments for its contact center professionals to a shift in payments from physical to online to an explosion of new loan applications and to a difficult loan receivables environment that may stretch capital reserves depending on the duration of this event. The impact to the U.S. economy represents an uncertainty that is leading to a restrained appetite to use discretionary budgets to fund forward-looking projects, limiting spend to maintenance and tactical initiatives to overcome today's predicament.
"The economic crisis of 2008 in one sense helped banks weather events like the COVID-19 pandemic by improving the institution's ability to manage risk and capital requirements," says Jerry Silva, research vice president, IDC Financial Insights. "But the pandemic has created wholly new circumstances that are challenging the banks that have resisted transformation efforts to date. Banks in the best place to survive and thrive during this crisis are those that have adopted technologies like AI, mobility, and cloud to improve scalability and resiliency."
IDC Financial Insights: Consumer Banking Engagement Strategies , IDC Financial Insights: Worldwide Banking Digital Transformation Strategies , IDC Financial Insights: Worldwide Compliance, Fraud and Risk Analytics Strategies , Worldwide Blockchain Strategies , Worldwide Payment Strategies