Impact of COVID-19 on UK Banks; How Banks Reshape Consumer Banking Behaviour during Pandemic

Abstract

Due to COVID-19 and prolonged lockdown, banks in the UK have reported impact on their operational activities and financial aspects. To deal with the impact of the COVID-19 pandemic, banks have adopted different strategies that reshape consumer banking behaviour during the COVID-19 pandemic. This study evaluates the impact of COVID-19 on three banks in the UK, including HSBC, Royal Bank of Scotland, and Barclays Bank. A mixed research approach was adopted where a closed-ended survey with 30 employees (10 employees from each bank) were chosen to participate in the survey. Interviews are conducted with three managers of the banks. The study findings show that banks adopted social distancing to ensure that their brand operations were not affected. The banks did not consider shutting down the branches for cutting the cost. However, there has been a shift from a manual to a digital process for client queries to improve efficiency. The banks also created the brand image of operating during the pandemic.