How the Covid-19 Pandemic Has Accelerated Digitization in the Banking Sector

Long before the pandemic hit, the need for systems built around digital banking and innovation was evident. And as technology keeps on advancing, so do customers’ expectations from banking. Most people want quick and personalized services. FinTech firms have already shown us the possibilities of digitalization, and that all lenders must have a digital plan. Since Coronavirus disrupted our world, there’s been a 72% increase in FinTech app usage in Europe.

Banks are now trying to assure investors they can create a sound digital system for customers and also reduce costs and maintain operational resilience. While it’s hard to analyze the effects of the pandemic so quickly, we can see some changes already happening.

There’s a Digital Revolution, But Will It Last Forever?

During lockdowns, banks effectively switched to online models. The transformation has been incredible as banks have moved almost all their customer interactions online. Most people now expect their banking methods to change permanently due to the pandemic.

Banks are preparing for a digitalized future, and Covid-19 has shown us what is possible. But most customers have not embraced a more long-term transition, especially baby boomers. They need more convincing to fully adopt digital banking.

How Quickly Can Banks Adapt?

There is no use checking what your customers are complaining about if you can’t change it fast. Banks should have compliance teams that act fast and also put up controls to reduce conduct and compliance risk.

They should have the ability to identify any bumps quickly and smooth them over. This will enhance the banking experience for customers and help banks avoid damaging their reputations. Banks can also enhance their online systems by customizing experiences. They should provide online banking communication, self-selection navigation, user-friendly features, and comprehensive FAQ content. This ensures there’s less need for call staff.

Banks Should Digitize Data

Banks with simplified and advanced digital systems will succeed more than their peers who don’t. Customers have now gotten used to digital platforms and aren’t happy with cumbersome, slow, or complicated systems. Those using digital banking must have a great experience during the crisis and beyond.

Banks should be using this time to analyze the data obtained from their digital platforms. Most banks have seen a rise in customer queries because most customers are unable to contact their banks on time. They should look at call center analytics to increase their response times and serve customers better. For instance, they can redeploy branch staff or use chatbots to boost call center capacity. A research study predicted that banking chatbots will save banks $7.3 billion by the year 2023.

Some digitally savvy customers are complaining that digital banking services are unable to handle their complex and urgent needs. For example, when many want to access fast loans, they have to type phrases like “loan offices near me” on search engines. Therefore, banks must use the crisis to learn how customer experiences can be improved during and after Covid-19.

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