Pandemic effects a shift in ‘Digital Banking’

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The shift is taking place possibly for good in the way of banking and a majority adopting digital and other channels to reduce their dependence on brick-and-mortar branches. The digital heads of banks and non-banking companies said that they see a redefinition of the purpose of branch banking. 

The transaction percentage of 95 percent of the movement out of branches post-COVID. Unless there is a great need for customers to visit branches. The fast adoption of WhatsApp banking and conversational banking bots.

All conversational channels, a voice that can be conversation have a significant shift. The company head stated that even after the shift out from COVID-19, there would be a habit to continue. The bank expects cuts in the size of branches as the most transaction are moving outside, leaving only the bigger ones to take place inside branches.

 The role, shape, and size of the transactions will see significant change. COVID-19 has accelerated digital adoption. When ATMs came, people said tellers and branches will go; when e-banking came, the people said the same about the branches. There will be more and more face time, quality conversations in the branches. Even the insurances sector, which has traditionally been a people-centered business, has seen a dramatic shift in the way it does business. 

The insurance has been a traditional way of business, with agents meeting people as trust has to be built. COVID-19 has changed the mindset. The company started emphasizing onboarding customers using a tab, it has helped to move seamlessly.

 The digital enablement of traditional channels has happened as it is all about adaptation and changing the mind-set. In the next year, digital sales may move to 80% of traditional sales. 

The experts are saying that micro, small, and medium enterprises will see the biggest shift from cash to digital.

Banks are working with non-banks like accounting platforms, inventory, and supply chain management platform to get data to build either credit underwriting or transaction processing or reconciliation. Branch banking is visible in fintech companies are cautiously optimistic impact on the pandemic may impact their business. The physical touchpoint change is getting the algorithm to adapt is what will be the key for the next six months.  

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