COVID-19 pandemic has drastically changed our businesses, industries and communities unimaginably. The daily unfolding situation has forced everyone of us to learn and adopt the ways to respond to the ongoing crisis. However, disruption in the banking sector has caused a massive transformation in the way consumers do banking.
Banks have invested a good amount in digitizing their operations and have become more adaptable than others to respond to COVID-19-led transformations. As people start settling with the “new normal” trend. It seems that digital banking is well on its way to worldwide adoption.
And this burgeoning trend is soon going to create a massive demand for branchless banking services. That is why you should start offering branchless banking services by making a branchless banking solution for your business.
In this blog, we will discuss with you in detail how digitalisation will be a growth catalyst for the banking industry. So let’s dive right into the details without wasting much time.
Reimagining digital banking post-COVID-19 pandemic
Staying productive and maintaining continuity becomes the top-post priority for a majority of banks in this digital era. And after the COVID-19 pandemic, this priority became an immense need for the banks as there is a huge transformation because of the need to avoid direct touch.
And that is why banks have opted for a pragmatic approach by digitizing their operations. However, digitalization is not the only thing that banks are seeking for, there are some more reasons also as to why traditional banks should go for a digital banking solution:
Acceleration towards the ‘contactless’ trends
More and more banks are turning towards the digital turf because of the COVID-19 pandemic to have an edge over competition. Therefore, the banking industry is tapping into the variety of digital services via mobile banking, open banking, and WhatsApp banking.
Talking about the growth of the above mentioned segments, we can say that all these segments have a massive potential. According to a survey by Business Insider, approximately 89% of participants have said that they use mobile banking actively. As per Statista, the open banking users are expected to reach 132.2 million (approx.) by 2024. Besides this, approximately 49% of banks have an omni-channel strategy as per Banking Hub.
Apart from these, WhatsApp has also decided to enter into the banking sector. According to Finances Online, WhatsApp has 2 billion+ users (approx.) as of 2021 that makes it a best choice for banking.
Strengthening customer relationships via digital tools
Consumers leaving and selecting a new bank is a growing trend post-pandemic. This signals the need for banks to get further long-term resources and relationship building with their customers.
An industry built on just human connection at branches, banks and credit unions are facing the challenge of keeping consumers engaged in an age of digital banking and social distancing. Part of retaining consumers in this changing environment is providing excellent tools, resources and services as part of the customer experience.
Adoption of cyber security tools
In the times of pandemic, digital payments took a great peak as customers are looking for ways to avoid direct touch. Nowadays, banks are using innovative tools to provide a secure payment experience to the customers. And one of the highly used methods for securing payments is cardless ATM withdrawals.
Apart from this, there are also some other methods that you can use to secure payments. Besides this, banks have started integrating biometric authentication and AI enabled verification into their mobile banking solution for a secure payment experience.
Shifts in customer experience
Digitalisation of banking is reshaping the customer experience by moving towards a mainstream channel. COVID-19 is likely to revamp high-impact digital journeys in the banking sector, such as customer onboarding and product origination, to deliver a truly outstanding digital experience to their customers.
This has opened up the floodgates towards digital banking to customer segments that are not so tech savvy compared to the other segments. Nowadays, banks are onboarding almost every age of customers, starting from millennials to the older generation.
Harness the power of micro loans
Micro-loans are like a boon for the unbanked population who don’t own a bank account but have a smartphone. The reason behind this is that micro-loans grant individuals the money to expand a small business or to cover up a few surging costs.
Finance service providers can use micro-lending to offer such services that have an amazing growth potential to attract investors. In this way, they can highlight the usage of the information of potential borrowers to assess their creditworthiness.
Digital banking is on the cusp of a huge transformation nowadays. It is the best example of convenient banking experience. Consumers across the globe are already loving this new, fast, and convenient form of banking. Besides this, the enormous growth in the telecommunications sector laid a roadmap for the growth of the banking industry.
Furthermore, digital banking’s future seems bright as the emerging FinTech unicorns are making a foray into the digital finance markets. And the reason behind this is the customers’ increasing demand for easier access to banking services. However, banks have to act now with improved tech skills and digital services to meet increasing consumer expectations.