Consumer acceptance, along with the use of online and digital banking alternatives, is on the rise ever since the global health crisis began. Some new researches show that the long-term beneficiaries who are following this trend are those financial institutions that already undergone digital transformation.
Fremont, CA: The COVID-19 pandemic has pushed the retail banking industry to embrace a digital-first mindset. Consumers are forced to utilize online or mobile banking alternatives or stand in long lines at drive-up teller’s window; the adoption of non-branch banking solutions has increased substantially. The financial institutions that were leaders of digital transformation have profited from this behavioral shift, while “fast follower” or “laggard” institutions have also had to play catch up.
Unless consumers choose to branch out again, organizations with the strongest digital solution will be in the ideal position to satisfy consumers who are still looking for some digital options. These digital transformation leaders will be given the best option to minimize distribution costs as economic stress continues to pressurize the financial industry.
One of the recent research conducted by J.D. Power highlights states that this ongoing trend was predicted to transpire years ago, but it occurred now due to the sudden shift in the industry. It occurred for less than three months, while it was already being fuelled by years of behavioral shift that will reverberate in the industry forever. Some of the key findings of the 2020 Retail Banking Satisfaction Study are:
• More than one-third of retail banking consumers plan to maximize the use of online and mobile banking services post COVID-19. This calculated percentage is expected to rise as it is proportional to the duration of the crisis.
• Mobile check deposit and P2P payments will be the critical digital banking functions that will be affected the most.
• The youngest range of consumers will probably increase the use of digital banking.
• Online banking customers who are not used to mobile banking will more likely begin using mobile services over branch-only consumers.
• Large financial institutions will have greater penetration of high engagement amongst digital customers than regional or midsize banks.
• Midsize banks will have a significantly lower online and mobile banking satisfaction index in comparison with the larger banks.
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