Marketing during a global crisis in an emerging market: a study of the response to the COVID-19 pandemic in the retail banking sector

Abstract

This article investigates the challenges and opportunities for banks during the unexpected global crisis of the coronavirus pandemic and how they have developed innovative marketing strategies to retain existing customers while attracting new ones. It features a meticulous synthesis of primary and secondary data. Specifically, 24 semi-structured interviews and 1 focus group discussion were conducted, on the perspectives of both customers and banks. These were supported by data from Bloomberg and other secondary data. This article establishes that the COVID-19 pandemic has provided unique opportunities for banks to retain existing customers while attracting new ones. It highlights various activities that have helped banks improve their brand image, growth, profitability, and sustainability during the disaster. It identifies the critical elements of sustainability during the pandemic from the banks’ perspectives. It also demonstrates different customer expectations, including further reduction of interest rates on loans, extending loan repayment periods and implementing a COVID-19 sensitization campaign among the public. The study offers novel insights on the topic by demonstrating that there are inherent opportunities in such a global crisis, despite the associated challenges. In such a situation, banks must reposition their strategies to survive the crisis while supporting and attracting existing and prospective customers.