The impact of Covid-19 on Belgian banks, the case of Belfius

Abstract

The global Covid 19 crisis that emerged in 2019 has had numerous repercussions on the economic and financial markets and social environment. A solution was put in place by governments: containment; businesses, institutions, schools and activities had to close their doors and offer remote alternatives.

This led to the emergence of the digital signature in banking. Although the online signature existed before Covid, the need to carry out transactions remotely has increased its use.

However, this is not the only consequence of the pandemic. We are studying the opportunities arising from this containment in the Belgian banking sector. The impacts generated by the distancing measures are studied using an in-depth quantitative and qualitative analysis of the Belfius bank. This research highlights the rise of digitalization in the banking sector. Banking applications are now the norm. It also shows that fewer customers are visiting Belfius agencies.

Environmental and social issues were at the heart of the discussions, particularly during containment. ESG criteria have consolidated this trend by applying corporate standards. Environmental, social and governance factors assess the sustainability and social responsibility of companies and banks. The limits to the use of these standards are set out.

We then check whether the lessons learned from this approach can be applied to the entire Belgian banking sector.