An unexpected crisis by-product: consumer trust
After the financial crisis of 2008, public sentiment about big banks was hardly positive. But new data suggests the pandemic has had the opposite effect when it comes to consumer trust.
Since the start of 2020, deposits have risen 8 percent (or $1 trillion), according to The Federal Reserve, despite backlash over the implementation of the Paycheck Protection Program. These missteps have not seemingly resulted in consumer apprehension and only reiterated banks as the cornerstone of stability and safety.
On the other hand, fintechs, the once-celebrated anti-establishment heroes of the financial crisis, have been arguably sidelined through coronavirus. Moven, one of the country’s first challenger banks, was forced to shut its doors in April, with dozens of similar establishments furloughing employees.
“Eventually, of course, the crisis will end. And when that time comes, the rhetoric from tech firms will return,” writes Rob Blackwell, Chief Content Officer of American Banker. “They’ll market a faster, improved way to do banking. But they are likely to find a less receptive audience than before.