“It is widely expected that interest rates will rise again on Thursday, and the fallout has been talked about extensively.
“There is little doubt that tough times are ahead, and the combination of rising inflation, interest rates and other global economic influences will impact customers and consumers. In this uniquely challenging environment, household finances will be squeezed and budgeting behaviours and payments choices will need to adapt accordingly. There will likely be a focus on banking channels, for instance in branch or mobile banking, and how products and services can support customers as they navigate through this the best they can.
“For many, the pressures of interest rate rises and inflation are being felt for the first time. At 9%, UK inflation is at a 40-year high, the highest in the G7. This is also the first sustained interest rate rise environment since the acceleration of digitalisation of products and services, posing new difficulties to those in society who are underbanked or less accustomed to new technologies. Digital generations are seeing economic challenges through a new lens and many customers will need support through the coming months of uncertainty.
“The challenge and opportunity for Financial Institutions is to manage their own increasing costs, and to importantly support customers through a period of unease, creating loyalty and trust for brighter times.”
Louise Coles, Senior Director, Banking, UK & Ireland at Diebold Nixdorf