The survey also shows that among older people, Indians are more likely to make the switch to digital payments after the pandemic.
Usage of digital payments in the post-Covid period is set to be the highest among Indians at 75%, followed by China at 63% and Italy at 19%, according to an 11-country survey conducted by Capgemini on financial services consumer behaviour. The survey also shows that among older people, Indians are more likely to make the switch to digital payments after the pandemic.
Capgemini’s survey was conducted among consumers in China, France, Germany, India, Italy, the Netherlands, Norway, Spain, Sweden, the UK and the US in early April.
“The uptake in digital payments has been around for some time. What was striking was that about 80% of the older consumers in the age bracket of 56 years plus have switched to digital payments, which is way higher than global benchmarks,” said Sudhir Pai, chief technology officer for the consulting firm’s global financial services business.
“There are certain events that trigger a shift in behaviour. Covid-19 has forced people to self-isolate, which is making people unlearn old methods and move to the new world,” said Pai.
Other findings of the survey are that 85% of the Indian consumers prefer to save more in 6-9 months as compared to 80% in the current period and 72% before Covid-19. India also topped demand for insurance coverage with 83% consumers opting for an increase in life insurance coverage in the six-nine months from 80% currently, and 70% in the pre-Covid period.
According to Pai, working remotely is going to increase. “Most of our clients are talking about looking at the new normal state. But it is not going to an extreme where everything is going into a remote mode. There is going to be a transition where essential services will remain face-to-face and personal. In banking, every country has reached out to us for developing a contactless approach, whether it is for onboarding customers or any other transaction,” he said.
According to the study, Indians interacting on mobile apps increased to 67% from 57% in the pre-Covid period, and 74% Indian consumers will prefer interacting over a mobile app in the next 6-9 months. The global average on a mobile app as a digital touchpoint stood at 47% during the pre-Covid period, 52% in the current phase and 55% in the next 6-9 months.
The study further mentions that 40% of Indians were using voice assistants and chatbots pre-Covid as a preferred digital touchpoint for banking, this surges to 52% currently, and will further increase to 59% over the next 6-9 months. This was the highest among the countries surveyed.