Digital Banking Lockdown Drives Industry-Wide Transformation

The COVID-19 pandemic has accelerated the digital banking lockdown, forcing the industry to transform at an unprecedented pace. This rapid shift has led to a significant increase in online banking adoption, with 70% of customers using digital channels for banking services.

The digital banking lockdown has also led to a decrease in branch usage, with some banks reporting a 90% drop in foot traffic. This shift has forced banks to rethink their branch strategies, with many adopting a "branch of the future" concept that focuses on customer experience and community engagement.

As a result of this transformation, digital banking has become the new norm, with 60% of customers preferring to bank online or through mobile apps. This shift has also led to an increase in mobile banking adoption, with 40% of customers using mobile banking services.

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The COVID-19 pandemic has accelerated the transformation of digital banking, with a surge in online and mobile banking activity.

A 200 percent increase in new mobile banking registrations was noted by Fidelity National Information Services in early April 2020, and a 85 percent jump in mobile banking traffic. This trend continued even after lockdowns ended, with many customers opting to avoid their local branches.

Forty-seven percent of consumers surveyed by Accenture stated a preference for using a mobile application or website to open a new bank account, while 37 percent preferred using a desktop or laptop.

The pandemic has also driven a significant increase in contactless payments, with a 40 percent jump worldwide since the start of the pandemic.

More than 50% of people living in the United States began using mobile wallets like Google Pay or other contactless payment methods since the start of the pandemic.

Banks in Africa have also accelerated their digitization efforts, with 80% of African banks now offering mobile banking apps and almost all the rest planning to roll them out in the near future.

The suspension of digital transaction charges has encouraged the process, with the most popular reasons given by banks for promoting digital services being to provide a better service and to increase bank revenues.

Banks that persuade more customers into the digital space are able to cut costs, with digitization reducing the cost of back office functions through automation.

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Protecting the customer experience is crucial in digital banking.

Banks need to enhance their online and mobile banking capabilities to meet customers' needs.

A flawless customer experience can be achieved through quality assurance (QA) testing, which acts as a safety net against digital bugs or anomalies.

QA testing is vital for the success of any digital product, including online and mobile banking platforms.

This ensures that customers have a frictionless experience, which is essential in today's rapidly changing retail banking industry.

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The pandemic has accelerated the shift to online and mobile banking, with a 200 percent increase in new mobile banking registrations in early April 2020, and an 85 percent jump in mobile banking traffic.

Many customers continue to avoid using their local branches, with 50 percent of consumers interacting with their bank through a mobile app or website at least once a week in 2020, compared to about just 32 percent in 2018.

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This surge in online and mobile banking is unlikely to come to an end, as 47 percent of consumers surveyed by Accenture stated a preference for using a mobile application or website to open a new bank account.

In fact, the pandemic has also led to a significant increase in contactless payments, jumping 40 percent worldwide since the start of the pandemic.

More than 50% of people living in the United States began using mobile wallets like Google Pay or other contactless payment methods since the start of the pandemic.

This shift towards online and mobile banking is not limited to one region, as 42 percent of consumers in France are using contactless payments more since the beginning of the pandemic.

African banks are also embracing digital technology, with 80% of them now offering mobile banking apps and almost all the rest planning to roll them out in the near future.

The pandemic has encouraged more people to bank online or via mobile phone, and banks have supported this trend to continue providing much-needed banking services.

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In today's digital age, consumers expect a more personalized experience from the companies they do business with. Retail banks can improve customer satisfaction by offering tailored services and products.

Consumers are willing to share their personal data in exchange for more personalized services. This is evident in the fact that 94 percent of banks fail to offer customers highly personalized services.

Presenting customers with only the most relevant products and services can help retail banks win over more customers. In fact, nearly 40 percent of customers will leave a website and purchase from a competitor if they're overwhelmed by too many options.

By investing in online and mobile banking features that deliver personalized products and services, retail banks can better connect customers with the right offer for their needs. This approach can lead to increased customer satisfaction and loyalty.

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In the face of the pandemic, cyberattacks on banks and financial institutions skyrocketed by 238 percent between February and April. This alarming increase has led companies to take a proactive approach to security.

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Banks and financial institutions are revisiting their AML and KYC procedures to strengthen their defenses. A. Selemonaitė emphasizes that implementing new safeguards will benefit market players long after the crisis has passed, equipping them to handle evolving digital threats.

By adding an extra layer of security, companies like ConnectPay are launching payment verification apps to combat pandemic-related threats.

Protecting the customer experience is crucial in today's rapidly changing retail banking industry. Digital transformation plans are accelerating to better meet customers' needs.

To provide an excellent customer experience, banks need to enhance their online and mobile banking capabilities. This includes executing quality assurance (QA) testing to guarantee a flawless and unrivaled customer experience.

QA testing is a safety net that protects banks from the consequences of digital bugs or anomalies in their online and mobile banking platforms. In many ways, QA tests act as a crucial layer of protection.

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To succeed in digital banking, banks must execute QA testing to ensure their platforms deliver a seamless customer experience. This is essential for building trust and loyalty with customers.

The retail banking industry is changing rapidly, and banks must adapt to meet customers' evolving needs. By prioritizing QA testing, banks can stay ahead of the curve and provide a superior customer experience.

Banks and other Financial Institutions (FIs) have been a major target for scammers since the start of the pandemic, with cyberattacks spiking an astonishing 238 percent between February and April.

Companies are now facing the situation head-on, revisiting AML and KYC procedures and implementing new safeguards.

Putting more safeguards in place will benefit market players long after the crisis has blown over, as they will be better equipped to deal with constantly evolving digital threats.

ConnectPay has launched a payment verification app, adding an extra layer of security to its system to combat pandemic-related threats.

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Technology and innovation have played a crucial role in helping banks and credit unions adapt to the pandemic. Many institutions have accelerated their technology upgrades, moving from in-branch interactions to remote channels like online, telephone, and ATM banking.

Smaller financial institutions have had to find the right balance between physical and digital solutions to ensure customers receive the same level of service. This can be challenging, especially when branches are closed or observing limited hours and services.

The growth of digital payments is another area where technology has made a significant impact. The e-comm boom and the World Health Organization's encouragement of cashless payments have stimulated the growth of e-payments. Sweden's central bank has even signed an agreement to gain access to the EU TIPS platform for instant payments.

In Africa, 80% of banks now offer banking apps, and almost all the rest plan to roll them out in the near future. Banks are embracing digital technology to provide better services and increase revenues, with 80% seeing fintech and challenger banks as partners for growth or directly investing in them.

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The growth of digital payments is a remarkable trend that's been accelerated by the pandemic. The e-comm boom has led to a significant increase in digital payments, with many countries following Sweden's lead in adopting instant payment platforms.

Sweden's central bank signed an agreement to access the EU TIPS platform, which will serve as the basis for the country's own instant payment platform. This proactive approach has allowed Sweden to be better equipped to meet the growing demand for faster and more convenient services.

As a result of the pandemic, people are looking for greater options and flexibility in their payment methods. Companies are responding by integrating more payment methods into their systems, such as the Merchant API that was integrated to cater to clients' needs for greater options amidst quarantine.

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Building advanced chatbots is crucial for banks to provide 24/7 customer service and alleviate pressure on customer service representatives.

As more bank branches close, customer service centers are having to accommodate a growing number of customers, making it difficult to provide the same level of service customers were accustomed to prior to the pandemic.

Banks should continue to invest in building better chatbots that can assist customers with more complex requests, such as getting information on mortgages or opening a line of credit.

By abandoning the one size fits all approach, banks can use highly specialized chatbots that are more capable of responding to customers' specific questions or needs, making it easier for retail banks to help and convert potential or existing customers.

Smaller financial institutions may struggle to find the right balance of physical and digital solutions, but building advanced chatbots can be a key part of their digital strategy.

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Data is at the heart of digitization, and banks must ensure customers using remote channels have a positive experience during and beyond the crisis.

Some banks have been challenged by a surge in customer queries, leading to delays in customers being able to contact their bank. Customer insight, such as through call center demand analytics, should feed into banks' plans to increase response times and better serve customers.

Banks can use data to identify areas for improvement in the customer journey and enhance the experience during and post-crisis. Using chatbots or redeploying branch staff to boost contact center capacity can help increase response times and better serve customers.

Digital banking services are generally easy to use for anyone with experience of online or mobile services, which may lead to a long-term increase in digital banking users.

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Data at the core of digitization is crucial for banks to thrive in a lockdown environment. Banks with better digital capabilities will benefit over those struggling to cope with banking in the lockdown.

Customers are being forced to use digital channels, and those with slow, cumbersome, or overly complicated systems may be viewed unfavorably. Banks must ensure customers using remote channels have a positive experience.

Customer insight, such as through call center demand analytics, should feed into banks' plans to increase response times and better serve customers. This can be achieved by using chatbots or redeploying branch staff to boost contact center capacity.

Some have predicted that the operational cost savings from using chatbots in banking will reach $7.3 billion globally by 2023. This highlights the potential benefits of leveraging technology to improve customer service.

Maintaining connectivity for customers is key, especially with branches largely unavailable. Banks are using apps, emails, and website messages to speak directly to individuals, which is a great way to stay connected.

Banks should use the crisis to identify areas where the current customer journey can be improved to enhance the experience during and post-crisis.

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African banks have made significant strides in digitization, with 80% now offering mobile banking apps and almost all the rest planning to roll them out soon.

The Covid-19 pandemic has accelerated this trend, with banks promoting digital services to provide a better experience and increase revenue.

Digitization reduces back office costs through automation, allowing banks to cut costs and invest in growth.

In fact, 80% of African banks see fintech and challenger banks as partners for growth or invest directly in them.

The pandemic has also led to an increase in online and mobile banking, with a 200% increase in new mobile banking registrations and an 85% jump in mobile banking traffic.

Even as lockdowns ended, online and mobile banking continued to surge, with 50% of consumers interacting with their bank through a mobile app or website at least once a week in 2020.

The use of contactless payments has also jumped 40% worldwide since the start of the pandemic, with more than 50% of people in the United States using mobile wallets like Google Pay.

Banks are now focusing on integrating physical and digital banking provision, recognizing the need for a balance between customer access and digital transformation.

The future of banking looks set to be increasingly digital, with customers preferring to use online and mobile banking apps to manage their finances and open new accounts.