The COVID-19 pandemic has forced a major transformation in the way businesses in every sector operate. And it is obvious that the digital banking industry would not stay immune to the same. Based on our experience, we can safely say that digital banking is poised to experience some sweeping changes – changes that would be challenging to deal with for the banks, but ones which will lead to a much greater customer preference for digital banking. The following are the major changes that could be expected in digital banking:
Digital Banking Experience – a key differentiator
It wasn’t like digital banking was not growing before March 2020, but after the lockdown had to be enforced due to the spread of COVID, almost the entire banking activity from the customer end has shifted to digital mode. As such, digital banking will no longer remain as just another mode of transacting – it will emerge as the point of differentiation between different banks. How convenient, how easy, and how pleasant the digital banking experience is for the end-user will be a key determinant of a bank’s brand image.
Evolution of digital banking – from a servicing channel to a customer engagement avenue
Every customer who was once accustomed to physically visiting bank branches and has now learnt how to transact digitally is bound to prefer the latter. Simply because it is more convenient, hassle-free, and it reduces human interaction, given the pandemic induced health concerns. As a result, banks will now have to look at designing their websites and smartphone applications with customer engagement as the key focus. The key challenge then would be how to promote different banking products to customers over digital platforms without making it intrusive. This would see banks trying to tap into the large reserves of customer data to try and create personalized engagement experiences for their customers.
Fin-tech to evolve to the next level
Having to handle a much higher consumer base on digital platforms would make it necessary for banks to increase their server capacities, and use technologies that are scalable, more secure, and smart. And therefore, the need to enhance user experience on digital banking platforms would mean banks will attempt to make a far greater utilization of technologies such as Blockchain, cloud platforms, Artificial Intelligence and Machine Learning, and so on. Thus, there are bound to be far greater investments in the development of cutting-edge financial technology.
Back in 2016, demonetization had given a major impetus to digital banking. But COVID-19 is an altogether different proposition, where customers are compelled to use digital banking. With most people still averse to venturing out without it being absolutely necessary so (and justifiably so), digital banking is going to be perhaps the only option for the most part for carrying out transactions. And while this holds major opportunities for players in the digital banking space, the challenge is to reap the opportunities that circumstances have generated.
It is in rising up to this challenge that Evolvus Solutions has demonstrated expertise in. Over the years, we have served 30+ banking clients spanning across 9 countries in developing streamlined payment systems which have cumulatively recorded over 40 million payment transactions. And to help our existing as well as prospective clients adapt their digital banking infrastructure for the new normal, we are all geared up.