Impact of COVID-19 on UK Banks; How Banks Reshape Consumer Banking Behaviour during Pandemic
2. Literature Review
2.1. Impacts of COVID-19 on the Banking Sector
2.2. Different Strategies Adopted across the Global Banking Institutions
3.1. Data Collection and Instrument
3.2. Sampling and Sample Size
3.3. Data Analysis
- Theme One: Business Continuity Plan for Survival;
- Theme Two: Internal Operational Changes;
- Theme Three: Customer Relationship Management.
4.1. Survey Results
4.1.1. Theme One: Business Continuity Plan for Survival
4.1.2. Theme Two: Internal Operational Changes
4.1.3. Theme Three: Customer Relationship Management
4.2. Interviews’ Results
4.2.1. Theme One: Business Continuity Plan for Survival
4.2.2. Theme Two: Internal Operational Changes
4.2.3. Theme Three: Customer Relationship Management
6. Conclusions and Recommendations
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
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|Bank Adopted Maintained Branch Distribution and Client Service Operations without Interruption||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank was quick at responding to the social distancing guidelines||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has closed some of the branch temporarily||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank used IT development teams to automate routine work||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has shifted some employees from non-critical work to essential operations||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has developed, documented, and communicated a plan to process physical mail||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has adopted temporary customer relief with no credit impact for auto, mortgage, card, and small business loan clients||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has introduced branding campaign to manage customer perception||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|Bank has created a new brand image during COVID-19||Barclay’s PLC (%)||Royal Bank of Scotland (%)||HSBC (%)|
|The Strategy||HSBC||Royal Bank of Scotland||Barclay’s Bank|
|The banks have attempted to maintain the branch operation as part of the business continuity.||“We ensured that branch services are available for walk-in clients without any disruption.”||“Due to lockdown, physical interaction was not allowed, but branch service was important for the bank, so we did not close our branch and made sure that clients can visit the branch but only for important things.”||“The real challenge was to continue the branch because due to lockdown, there was a restriction on the physical interaction.”|
|Social distancing guidelines||“To continue the branch operation, we had to adopt social distancing, and therefore the bank created social distancing policy and other SOP to be followed.”||“We adopted social distancing to continue the branch operations because without that, we could not have opened the branch.”||“We adopted strict social distancing and SOP and ensured that clients and employees in the branch wear a mask and maintain social distancing.”|
|The Strategy||HSBC||Royal Bank of Scotland||Barclay’s Bank|
|New marketing and branding strategies to create a new brand image||“Yes, we did try to inform our potential clients that our branches are open and that we are following SOPs and that we are responsible.”||“It was nothing new, but the bank ensured that the clients know that the branches of the bank are open and that they can still reach us via different means.”||“Yes, we had focused that the clients know that we are working normally following the social distancing. It was important during a pandemic.”|
|Changing working and visiting hours.||“Yes, we did make the changes in visiting hours. We shortened the duration of clients to visit the branch, but there was no change in the working hours.”||“No, there was no change in the visiting or working hours. Due to social distancing, we were already slow in entertaining clients so that we couldn’t reduce the visiting hours.”||“No, it was not needed because we had already managed the work. Everything was under control.”|
|The Strategy||HSBC||Royal Bank of Scotland||Barclay’s Bank|
|Relief of customers on their loan repayments||“We have only given relief to clients who have contacted us and requested for an extension.”||“Not really. We have only allowed business clients with a reasonable reason for the delay in the loan repayment.”||“Yes, we have allowed some of the clients late repayment because we understand that this is the situation in which there is a decline in the economic activity.”|
|Adopting a digital process for timely customer service||“Yes, we tried that most of the clients’ requests are met on the digital system because it is convenient.”||“Yes, although we already had a digital system to manage the client’s request, during a pandemic, we mainly relied on the digital process.”||“We have forced our clients to use our website or app for submitting their queries. We have a digital process for processing such requests.”|
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Darwish, N.A.; Bayyoud, M. Impact of COVID-19 on UK Banks; How Banks Reshape Consumer Banking Behaviour during Pandemic. COVID 2023, 3, 131-143. https://doi.org/10.3390/covid3020008
Darwish NA, Bayyoud M. Impact of COVID-19 on UK Banks; How Banks Reshape Consumer Banking Behaviour during Pandemic. COVID. 2023; 3(2):131-143. https://doi.org/10.3390/covid3020008Chicago/Turabian Style
Darwish, Nidal A., and Mohammed Bayyoud. 2023. "Impact of COVID-19 on UK Banks; How Banks Reshape Consumer Banking Behaviour during Pandemic" COVID 3, no. 2: 131-143. https://doi.org/10.3390/covid3020008