Emmalyn Shaw says banking will look a lot different in five years thanks to Covid-19

Emmalyn Shaw says banking will look a lot different in five years thanks to Covid-19
Image: Courtesy Emmalyn Shaw
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It took a global pandemic and stay-at-home orders for 1.5 billion people worldwide, but something is finally occurring to us: The future we thought we expected may not be the one we get.

We know that things will change; how they’ll change is a mystery. To envision a future altered by coronavirus, Quartz asked dozens of experts for their best predictions on how the world will be different in five years.

Below is an answer from Emmalyn Shaw, a managing partner at Flourish, a venture firm. She has held previous positions at Oak Investment Partners and Morgan Stanley.

In many cases, the Covid-19 pandemic has accelerated the use and adoption of digital payments and retail financial services. We’re seeing consumers move away from incumbent financial institutions in favor of challenger players that offer a faster pace of innovation, superior customer experience, and better affordability of service—particularly as we move toward a “no touch” economy.

In fact, Capgemini found that 36% of consumers turned to a new financial services provider during the Covid crisis and plan to stick with that provider in the future. These numbers are markedly higher among consumers ages 18 to 45. With fintechs chipping away at traditional banks, brand loyalty is under pressure.

This indicates that five years from now, banking will look very different, especially as these fintechs continue to broaden their services, forge meaningful partnerships, and recruit more profitable customers.

To read more New Normal answers, click here.