Financiers To The Looming Economic Recovery
A year ago, as the Coronavirus pandemic spread, the world entered lockdowns and the economy to ground to a halt. To keep businesses going and households current on their bills, policymakers leaned on banks like never before. The banking system became the crucial cog in which stimulus was filtered into the economy as a bridge to get to the other side of the pandemic.
Lenders were able to raise record amounts of debt and equity for businesses building emergency stockpiles of cash, and they were integral in the distribution of stimulus payments and other economic relief. Mobile banking technologies helped consumers handle their finances from home, and financial markets displayed unwavering confidence in banks. With vaccines now being distributed worldwide, banks stand on the frontlines of an extraordinary success.
The global economy is staged for a big comeback, led by the United States, where gross domestic product is expected to surge 5%-plus. Unemployment rates are quickly falling—the U.S. economy added nearly one million jobs last month—and job openings sit at record levels. Consumers inoculated from the virus are increasing their spending. Meanwhile, stock markets and real estate transactions continue to hit new record highs. Lenders will soon release reserves they set aside during the dark days of the pandemic, and forecasts of their profits are trending higher alongside interest rates and the economy.
“Within days of realizing that Covid-19 was a global pandemic that would virtually close down large parts of the world’s economies, the U.S. government moved with unprecedented speed,” JPMorgan CEO Jamie Dimon recently reflected in his annual letter to investors. “Fortunately, banks were part of the solution – unlike in the Great Recession.”
The tremendous performance of banks is reflected in Forbes’ third annual list of the World’s Best Banks, which we publish in partnership with market research firm Statista.
Click here for full coverage of The World’s Best Banks.
Statista surveyed more than 43,000 customers in 28 countries around the globe for their opinions on their current and former banking relationships. Banks were rated on an overall recommendation and satisfaction, as well as five subdimensions (trust, terms and conditions, customer services, digital services and financial advice). Between 5 and 75 banks were identified as top banks in each country, based on the total evaluations collected, the number of banks in the specific country and the scores achieved.
This year’s list includes a record number of award winners, reflecting consumers’ increasing confidence in their banks. Some 500 banks worldwide were awarded by consumers as among the World’s Best Banks. The United States led the way with 75 banks receiving awards, followed by Japan at 50 banks. We added five new countries to our study—Taiwan, United Arab Emirates, New Zealand, Saudi Arabia and Singapore—bringing total markets addressed by the list to 28.
The big trend on this year’s list is the continued rise of digital banks, which are gaining ground in customers’ eyes in Asia, Europe, Latin America and the United States.
N26, a Berlin-based digital bank founded in 2013, was the top-performing bank worldwide according to our survey. It won awards in five countries, tying Citibank in overall awards, and placed as the top-ranked bank in Austria and Italy. The lender, which saw customers increase 40% to 7 million in 2020, placed #2 in France, #4 in Spain, and #13 in its home market of Germany.
Like many digital banks, N26 deploys new technological infrastructure and efficient operations to pass on savings to customers in the form of reduced fees and other costs. N26 does not charge fees for minimum account balances or account maintenance, and even avoids…
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