It was challenging to stay away from difficult financial talks in 2020. People across the world were concerned about their financial health in the face of widespread uncertainty due to the epidemic. Budgeting, contactless payment, and everything in between were topics of discussion. In this article, we’ll rely on current consumer behavior data to discuss the most important developments in financial services for 2021. Let’s get started!
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Growing Talks on Budgeting and Other Things
Budgeting is essential for financial stability since it ensures that you can pay for typical expenditures such as rent, tuition, student loans, credit card bills, and entertainment, as well as others such as a home loan. But, precisely, what is budgeting? It’s a proactive approach to financial organization. Budgeting guarantees that you don’t spend more than you earn, enabling you to prepare for both short- and long-term expenditures. It’s a simple, effective method for individuals with various incomes and expenses to keep their finances in line.
Budgeting was the most often mentioned subject among self-described financial experts, with 14k mentions over the nine-month study period. These comments centered on assisting individuals in adjusting their financial arrangements as a result of the epidemic.
Similarly, loans were the second most popular subject (5k mentions) in financial experts’ spending discussions. Grace periods, home mortgage loans, and student loans were all mentioned. Once again, the epidemic was an important topic.
A Rise in Discussion About Insurance
The chances are that when you hear the term “insurance,” you don’t feel all excited inside. Insurance companies were a significant source of good mood for the financial sector in 2020, however. According to our research, the insurance industry had the essential proportion of favorable comments out of all the sub-sectors in our 2021 Customer Experience Report’s financial services category. We overheard individuals discussing their insurance plans, giving advice, and joking about insurance ads throughout this discussion.
Between January 1, 2020, and December 31, 2020, we discovered 15 million references of insurance coverage in our previously stated Financial Services report for 2021, which is statistically higher when compared to the number of contacts in the prior years we examined. Given that the year 2020 was characterized by a pandemic, it is not unexpected to see an upsurge in discussion regarding health insurance problems.
People were more open to talking about pet insurance this year since it was the year of the pet. The number of individuals talking about this kind of insurance increased by 154 percent in 2020 compared to the typical number of people speaking about it in 2017, 2018, and 2019, attributed to more people purchasing pets during lockdowns.
Rising Tensions as Customer Support Worsens
According to our Customer Experience Report for 2021, poor customer service and excessive time on hold were two of the most common causes of unfavorable discussion (mentioned above).
This may be due to an increase in the number of individuals forced to communicate with their bank via digital or over-the-phone channels rather than visiting a branch when limits were tight in 2020.
As financial tensions continue to rise in 2021, financial service companies should pay greater attention to the areas where major consumer pain points continue to manifest themselves. Taking steps to address these problems may result in the creation of much-needed competitive advantages.
Going Contactless Becomes a Priority
Not only did Covid-19 increase the number of individuals who buy online, but it also accelerated the release of long-awaited forecasts from experts about the changing nature of consumer payment systems.
More than simply, payment options are available when shopping using contactless technology. Retailers began experimenting with different technologies to allow customers to try on clothing and shoes without physically visiting the store due to the loss of in-store shopping opportunities.
Innovations in the retail sector have made every attempt to minimize the possibility of physical touch, resulting in an online purchase that is as similar as possible to the in-store experience. Will these virtual alternatives, which range from putting on glasses at home to getting a virtual makeover, be used on a long-term basis? According to Google Trends data, it seems to have, which shows a steady rise in searches for the phrase “virtual try-on” since the epidemic was proclaimed.
As the globe slowly starts to reopen in 2021, we may expect to witness an increase in spending and a decrease in the amount of time spent talking about financial difficulties. Consumer behavior was permanently changed as a result of the epidemic. What we value, how we consume, and where we spend our money will all change in the future.
Businesses that investigate and comprehend these changes may take immediate action to enhance product and service development, use more effective marketing strategies, increase customer loyalty, and position themselves for what comes next.
Meta title: Trends in Financial Decisions in 2021
meta desc: It was challenging to avoid precarious economic discussions in 2020. People across the world were concerned about their financial well-being as a consequence of the epidemic. But how has 2021 changed that?
