Digital revolution and new trends


Coronavirus has become an excellent test mode for mobile banking

How the epidemic has changed banks: the digital revolution and new trends. Photo: SHRM Blog

Long-term digital banking is not a new phenomenon, but due to the coronovirus epidemic, nearly all segments of the population migrated online for the first time, even by patrons of advanced age, who did not accept any digitalisation for years. Have done The sudden increase in mobile traffic in the United States completely overloaded the online platforms of America’s largest banks.

According to Fidelity National Information Services (FIS), which works with the top 50 largest banks in the world, the number of new registrations in mobile banking increased by 200% and traffic increased by 85% in early April.

The Ukrainians also adopted a global stance and began a massive transition to online – even before the beginning of March. So, according to PrivatBank data, the number of Privat24 application downloads among Android smartphone users increased only five-fold in March.

Most of the demand is linked to the balance check process – the average user used to check the account status once a week, but after the epidemic started, the process was repeated several times a day. You might think that after the quarantine is lifted, a complete restoration of the traditional banking system will return everything to its place – but it is not so simple.

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How the epidemic has changed banks: the digital revolution and new trends. Photo: Undercurrent

It seems that the online transition is still protected. In a recent survey conducted by fintech company Novantas, only 40% of respondents said they expected to continue using bank branches after COVID. In Ukraine, requests for digitization of banking services are among the highest in Europe.

The MasterCard survey also recorded Ukrainians’ growing interest in teaching digital technologies: 59% of users said they were now mastering online banking. People’s participation in the digital services segment has increased before our eyes, but most importantly, people liked the new concept.

Generally, only large banks with reliable reputation strengthen their position during a crisis. But this time it became a completely different situation – the epidemic prompted many people to open accounts in more and more accessible banks, which facilitated maximum digitization and remote interaction with accounts. In addition, many traditional banks are engaged in training customers to make changes in the online environment.

The fact that people started using online banking for the most common operations, such as purchasing food and home appliances, may also be considered symbolic. Pandemic has become an excellent testing mode for mobile banking. After trying a more convenient online tool, it is difficult for the user to revert to an outdated system inconvenient.

Thus, a new trend has emerged in the banking environment, which concerns everyone – focusing on remote servicing. People are only interested in online deposits, online lending and remote identification. Now, to keep up with the demand, banks are reducing the number of branches and introducing new technological solutions.

Read: National Bank transfers one of the online services: how it will work


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