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Rabat – Supported by the COVID-19 dynamics, the adoption of digital banking doubled during the pandemic, according to Mckinsey & Company‘s annual banking review.
The report, titled “The great divergence,” details that the number of digitally active consumers rose by 5.6% in 2020, in comparison with a 3.3% increase recorded between 2015 and 2019.
The ratio of digital product sales to all product sales also increased significantly by 6.4% in 2020, in comparison with a 2.7% rise in 2015-2019.
The pandemic offered the perfect opportunity for digital players to consolidate their presence in financial services, according to the report.
In 2020, more than 50% of the 1.9 trillion capital trending in stock markets went to firms operating in digital financial services.
Even as the world seems to be on a back-to-normalcy trajectory, digital banking remains at all times high, the report found.
While this trend pre-dates COVID-19 in advanced economies, the pandemic caused even less digitally-savvy customers to turn to digital services. According to the report, this shift gained momentum as banks diversified the pole of their digital services to sustain business transactions even with branches closed.
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Mckinsey & Company’s annual review also commented on the recovery of the global banking sector, stating that the rate of recovery surpassed initial expectations including in the Middle East and Africa.
The global economy is faring better than economists had primarily anticipated, with markets, businesses, and consumers showing resilience across the globe.
This unexpected fast recovery is in part thanks to government economic stimulus paychecks, the report showed. Estimated by Mckinsey at 29% of global GDP, governments’ support for COVID-19 is eight times more than the stimulus packages governments provided following the 2008 global financial crisis set at 3.3% of global GDP.
Banks have escaped the worst, but the outlook remains contingent on macro economic policies, interest rates, and government support.
