In just a few months, companies have been forced to look at remote work in an entirely new way in response to the effects of the COVID-19 pandemic. Before the pandemic, the ability to work from home was offered as an attractive perk to accommodate particular employee needs. This view has changed.
As more and more communities began to shelter in place during the coronavirus outbreak's initial days, a new perspective on the importance of remote work took shape—one that considers remote work a lasting means to operate and conduct business.
Accepting the new normal
As the dust settles on the first half of 2020, the impacts of rapid change across industries are becoming clearer. Upward-trending demand for digital banking solutions is an obvious development of importance for financial institutions.
Another expected effect that will touch FIs is a continued rise in remote work. Citing benefits including fewer disruptions and increased flexibility, many finance leaders are embracing remote work. In fact, a Gartner survey of finance leaders shows 74% of respondents are planning to make a permanent shift toward increased remote work after the COVID-19 outbreak.
What does this change mean for FIs?
The Financial Brand and other industry participants have laid out a number of developments that FIs may expect as remote working becomes a growing fixture. They include both positive and possibly negative possibilities:
- A downward trend in real estate demand
A convergence of reduced demand for large commercial real estate properties, vacated commercial spaces, and fewer new commercial building projects may decrease opportunities for revenue. On the positive side, this same trend could result in cost savings for FIs. - Commute-free workdays may mean fewer auto loans
As workers shift to at-home work models, cars may last longer, softening another FI revenue model. As these expenditures lessen, though, opportunities to market other types of loans (such as home loans or vacation loans) may arise. - Account holder growth may be impacted
Increased remote work could mean less relocation (a major driver in new account opening.) On the flipside of this dynamic, FIs may lose fewer account holders and enjoy opportunities to deepen their existing relationships.
No matter what materializes, the consequences of expanded work-from-home policies will make it necessary for organizations to respond in new and sometimes unexpected ways that may have long-term impacts on the way they do business.
Discover a comprehensive list of possible effects FIs may see as remote work increases in this recent article from Financial Brand.
Additional resources
The following Q2 blog entries share more useful information on work-from-home topics:
