As of 30th June, more than 500,000 people worldwide have died of the COVID-19 pandemic, and more than 1 million have been infected. The seriousness of the pandemic can be seen from the fact that it has managed to bring the entire world to its knees. The times in which we are living is unprecedented in terms of economic losses. Superpower countries like the USA have even declared it a national emergency in mid-march and all outdoor activities and travel came to a complete standstill. The work of keeping ourselves and our families safe is the paramount concern of every individual, and till effective vaccines are developed, the situation will just be what it is now.
While scientists and public health officials are finding the answers to the important questions raised by this pandemic, we all need to do our part in keeping the community safe. One factor that can help us in this regard is to restrict our physical presence in conducting transactions that can be done online. One such area is banking, and let’s see why online banking is becoming important in today’s COVID-19 situation.
Online banking is a safety measure
According to a study conducted by Lightico in the US (March 15, 2020), 82% of customers in the US are concerned about going to the bank and 73% are running most of their errands from their homes. While it is true that many customers will find it difficult to transition completely to a digital world of banking, however, many banks are nowadays starting to implement different programs to help their customers learn digital banking. Also, many banks are improving their digital platforms to help everyone use it in the best way possible.
The COVID-19 situation has forced banks to provide alternative ways of banking for the benefit of its employees and customers. Since the Centers for Disease Control and Prevention has advised people to maintain social distancing, it is not possible for people to visit banks and stand in long queues. At the same time, it is also impossible to manage such a crowd of people and ensure that they follow all the security and safety protocols. A robust digital banking system is the key to all these problems, and now more than ever. Banks are also reducing their demands for customers to print, sign, or scan papers to allow paperless transactions.
This online platform not only helps to implement safety norms but also helps banks keep their profit-margins positive, reassure anxious customers and continue business as usual without interruptions. In fact, many people are calling the year 2020 as the year of neo banking. Neobanks is also called Fintech firms which providing banking solutions without having a single physical branch, and it has grown by 50.6% between 2016 and 2020. This article explains in detail about neobanks.
Banks are educating people to improve their use of digital banking
The biggest concern for the banks in this pandemic was the elderly group which was the most vulnerable group, and the group who uses the digital channels the least. More than encouragement and motivation, these people need resources and technical support to switch to online banking. The common reasons why the elderly have difficulty using online banking is the ease of access, reduced motor skills, the willingness to change, and the disdain of modern technology. Banking institutions are ramping up their technologies to introduce digital channels that take care of all these issues. This is one of the paramount reasons why online banking is changing the business scene in this COVID-19 pandemic.
The results are showing positive as seen by a statement published by the Federal Bureau of Investigation in June 2020. It said that mobile banking usage has surged by 50% since the beginning of 2020, which is a positive sign. Many banks are taking this change positively by introducing digital onboarding to their customers and a streamlined and simplified user experience to help the ones who feel technologically challenged. Even many trading houses have introduced simplified stock trading to help people go higher up their businesses. The time has passed when banking apps were more about just checking your balance. These days you can engage with your bank and perform complex transactions, all at your fingertips, and all of this has been possible because of the relentless efforts of the banks to improve their customer engagement.
We are living in a time of digital revolutions and the biggest sector to be benefitted from this would be the banking sector. In the post-COVID-19 world, we will all fondly remember the role banking institutions have played in our life and made it simpler when things were tight around us.
