Changing Trends in the Shadow of Covid

With Covid-19, it would not be wrong to say that while humanity is experiencing an event that will take place once every 100 years, this pandemic has caught our way of doing business and in particular the financial sector in an age of change.
In general, with the introduction of the internet and its applications in all areas of our lives, the change in the banking and insurance sectors in the last 20 years in parallel with the changes in education, medicine, automotive, and industry can be considered as indicators of our habits that will change after the pandemic. For example, while the concept of online education has been seen as an alternative to in-class training until today, it has turned into a channel where all education services are offered with today's changing dynamics. Again, remote diagnosis techniques and autonomous vehicles, personalization in medicine and automotive, and the opportunities to make financial transactions with non-branch channels, which have been in our lives for a long time, prepare humanity for a new era after the pandemic.

We should not see the process we are going through as an unfortunate event that only corresponds to our generation. This pandemic was also a piece of good evidence in that it showed us that things that could happen with little probability could well happen and could happen in the future. So, when we consider the situation in terms of the financial sector, risk managers in the banking and insurance sectors will also consider the points that they used to have the possibility or did not take into account in the following processes, such as credit ratings or automobile insurance, health, and life insurance premiums, which affect our lives. They will be in the behavior of including in products. However, it should not be thought that this behavior will necessarily drive prices up. In fact, this will reflect on our lives in a way that will change the perception of risk and the way we do business. For example, in an environment where consumption habits change, the scoring of the loan demand to be shaped according to new needs will not be done as before. Again, while the number of drivers who want to have automobile insurance will decrease in a geographical location  where fewer people use cars than in the past, insurance products covering different needs such as natural disasters and depreciation expenses will emerge. Finally, considering the medical world, for example, who wants to buy a policy for a genetic disorder in an environment where a number of genetic defects can be treated? Therefore, we can say that in the post-Covid-19 period, new financial products and complementary applications covering different possibilities and needs will become widespread instead of classical approaches of finance. This will allow more individuals to enter the financial system at a lower cost compared to today, with changing production channels and consumption habits.

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