The Covid-19 pandemic changed life beyond recognition by challenging humanity’s over-reliance on face-to-face interactions.
Society had to collectively look for new solutions to survive in the new normal.
Today, meetings are virtual, shopping is online, restaurant deliveries are the order of the day, and technology has taken center stage in many industries.
The banking industry was forced to change overnight to cater to the needs of the changing business world.
As bank lobbies closed and people became wary of physical currencies, banking services moved online.
The gradual move to remote banking and contactless payments accelerated almost overnight as people adapted to movement restrictions.
But as global vaccinations bring our world to a new normal, here’s how the Covid-19 pandemic has changed banking.
Day-to-Day Banking Has Forever Changed
Covid-19 restrictions forced everyone to embrace online banking.
Routine activities such as balance checks, money transfers, paying bills, and credit-card applications had already gone digital, but Covid-19 made them more habitual.
Research by seniorslist.com found that 77% of aged people used online banking for the first time during the pandemic, while younger generations accessed services more via apps or web browsers.
And with banks moving other essential services online, day-to-day banking will never be the same again.
Branch-based services like PIN resetting, title loan applications, loan term amendments, and filing forms are all online, and consumers are liking it.
In fact, 45% of respondents in a study said they had permanently changed their banking behaviors.
Some preferred drive-thru lanes, using call-centers, and online or mobile banking.
Going Digital the Right Way
Covid-19 hastened the acceptance of the already existing digital payments.
And with more business happening online, banks are focusing more ongoing digital the right way.
They are simplifying digital processes and enhancing support to ease the customer’s experience.
There is more emphasis on the user experience, and many banks have redesigned their mobile and online applications, removing frictions.
Banks are also engaging customers more on social platforms and marketing on these platforms to inform people about the online services available and their benefits.
They are also personalizing customer experiences to improve brand loyalty.
Renewed Focus on Sustainable Finance
Covid-19 moved the focus on sustainable finance beyond the usual environmental efforts by financial institutions.
Banks rose to the occasion to support governments and NGOs to reduce the impact of covid-19 on low-income households, to boost healthcare, and to support the many small businesses whose existence was uncertain after the pandemic.
71% of consumers have expressed satisfaction with the finance sector’s sustainable efforts during the pandemic.
Financial institutions will continue to be a positive force as society rebounds health-wise and economically.
The Future
Covid-19 restrictions hastened the move to digital services in all industries.
Even after the pandemic, businesses and people won’t go back to their former way of doing things and neither will financial institutions.
Many consumers have confirmed in surveys that they like how things are now, so it’s upon the banking industry to invest more in digital banking, leverage new technologies, and embrace digital transformations.
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