McKinsey COVID-19 impact Morocco wave 3

McKinsey & Company 3
Most consumers view the current economy as weak/neutral, but outlook
is improving as only 1/3 expect further weakening in the next 3 months
FINANCIAL DECISION MAKER SENTIMENT PULSE FROME JUNE 16, 2020
30
23 25
68
73 72
2 4 2Top-2 box
(strong)
Apr 14
Middle-2 box
(neutral)
May 12
Bottom-2 box
(weak)
Jun 16
51
43
30
29
32
36
20 25
34
Apr 14 Jun 16May 12
Current state of the economy1,
Percent of respondents
Economy expectations in 3 mos2,
Length of economic impact3,
1. Q: How would you rate the current state of the economy?
2. Q: Looking ahead three months from now, do you expect the economy to be…?
3. Q: In your opinion how long will the economic impact from coronavirus (COVID-19) last?
9
18
31
25
10
3
4
3-5 yrs
Around 1 yr
<3 mos
2-3 yrs
~6 mos
1-2 yrs
>5 yrs
Source: McKinsey Financial Insights Pulse Survey, N = 493, Sampled to match Morocco gen pop 18+ years; Margin of error for wave-over-wave changes is +/- 6
percentage points for all financial decision makers, and larger for sub-audiences; Morocco survey 6/16/2020

Most consumers describe their current financial situation as weak, but ¾
expect it to remain the same or improve in the next 3 months
33
27 27
46
49 46
19 21 23
2 3 4
May 12Apr 14
Strong
Somewhat strong
Somewhat weak
Weak
Jun 16
Describe your current financial situation1
In the next 3 months, your financial situation will2…
18 14
7
29
30
17
38
33
38
14
19
33
Become slightly better
Become substantially better 4
Become substantially worse
Apr 14
1
May 12
Remain the same
Become slightly worse
Jun 16
4
1. Q: How would you describe your current personal financial situation?
2. Q: In the next 3 months, what do think is most likely to happen to your personal financial situation? It will …

Similarly, over 2/3rds of consumers report decreased income and
savings over the past month
66 71 67
32 26 29
Apr 14
2 3
May 12 Jun 16
4
51 54 48
21
23 27
28 23 24
Jun 16Apr 14 May 12
72 76 73
21 18 18
7 6 9
Apr 14 Jun 16May 12
Household income Household spendingHousehold savings
Increase
About the same
Decrease
How has COVID-19 affected the following over the past month?1
1. How has the coronavirus (COVID-19) situation affected the following over the past month? | Your (household) income, amount of income put away as savings, overall household spending

Over half of consumers are concerned or somewhat concerned
about job security and have 4 months or fewer of savings to live off
Overall job security concerns1
1. Q: How concerned are you about your job security given the Corona virus (COVID-19) impact?
2.Q: If your household experienced loss of your job, how many months would you be able to live off your savings, without making any changes to your current standard of living?
6 5 5
32 31
39
28 36
30
35 28 26
Apr 14 May 12
Top-2 box
(concerned)
Middle box
(somewhat
concerned)
Bottom-2 box
(not concerned)
NA /
don’t know
Jun 16
How long can you live off of your current savings?2
36 31 31
36
40 34
14 11
12
6
6
7
9 12 15
2-4 months
Apr 14 Jun 16
<1 month
May 12
1 yr+
9-12 months
5-8 months

Bank performance is below expectations for 28% of consumers
Bank performance vs. consumer expectations1
1. Q: How is your bank meeting your expectations during the Coronavirus crisis in serving your needs?
2. Net impact calculated top two box minus bottom two box
8
19
19 23
61 55 56
11
9
11
4 9 5
Apr 14
4
Performing somewhat above my expectations
May 12
Performing much above my expectations
Performing per my expectations
Performing somewhat below my expectations
Performing much below my expectations
Jun 16
5
-12%
Net impact2

Many consumers expect to increase use of digital and mobile
banking services even after the crisis ends
Once “normal life” resumes after COVID-19…1
1. Q: Once “normal life” resumes after the Coronavirus / Covid-19 crisis, do you expect to use the following bank services more often, less often, or the same as you were using before the
crisis? Please check one answer for each channel.
-11
-12
-22
-30
-24
-37
35
31
22
19
14
10
Online banking,
e.g., paying bills online
Phone call with your
bank advisor or branch staff
Visiting a branch for
making a transaction
Mobile banking,
e.g., using a mobile app
Will use less
Mobile payment, e.g., Jibi, Inwi money
Video chat with your
bank advisor or branch staff
Will use more
+24%
+19%
-
-11%
-10%
-27%
Net change

Consumers would like their banks to improve websites and
waive late fees
Desired support from banks during economic uncertainty; Top 3 box rank1,
1. Q: How would you like your banks to support you during this period of economic uncertainty?
44
36
30
30
26
21
20
18
45
38
37
32
11
43
43
34
31
23
24
16
8
Reduce minimum payments on my credit cards
Improve website further to allow seamless online
transactions for all banking activities
Educate me on using the variety of mobile/online tools
available for transacting/interacting with the bank
Waive late fees on my credit card/loan payments
Allow me to skip loan/mortgage repayment for one month
Introduce/Expand web-based customer service
through live video chat
Introduce/Expand web-based customer service through live video chat
Introduce check cashing service using home delivery
19
14
15
Jun 16
May 12
Apr 14

Consumers report decreased usage of most payment types over the
past month, though some are using more cash
1. Q: Over the past month, how have you changed your use of the following?
Over the past month, changes in usage of the
following financial vehicles1
16
12 9
5 20
33
5
11
13
-52 -50 -51 -57
-43
-32
-55 -50 -48
ChecksGeneral purpose
credit card
Debit card Store credit card Mobile
payment, e.g.,
Jibi, Inwi money
Cash Gift card/prepaid
card
Contactless
payment
Other electronic
payments
Increased usage
Decreased usage
-36% -39% -42% -53% -23% -50% -39% -35%
Net change
+1%

About half of financial decision makers are optimistic about
economic recovery after COVID-19
Financial decision maker confidence level on economic conditions after the COVID-19 situation1
8 4 8
41 45 40
51 51 52
May 12Apr 14 Jun 16
1. Q: How is your overall confidence level on economic conditions after the COVID-19 situation? Rated from 1 Very optimistic to 6 very pessimistic
Unsure: The economy will be impacted
for 6-12 months or longer and will
stagnate or show slow growth thereafter
Pessimistic: COVID-19 will have a long
lasting impact on the economy and show
regression / fall into lengthy recession
Optimistic: The economy will rebound
within 2-3 months and grow just as
strong or stronger than before COVID-19

Disclaimer
McKinsey does not provide legal, medical or other regulated advice or
guarantee results. These materials reflect general insight and best practice
based on information currently available and do not contain all of the
information needed to determine a future course of action. Such information
has not been generated or independently verified by McKinsey and is
inherently uncertain and subject to change. McKinsey has no obligation to
update these materials and makes no representation or warranty and
expressly disclaims any liability with respect thereto.

McKinsey COVID-19 impact Morocco wave 3

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