Digital Banking in Covid-19

by Xiaohe Zhu

 Banks has used to be believed that digital transformation is a kind of customer preference as something evolved suddenly. However, this point of view has been changed by the Covid19 pandemic. Contact-free solutions are promoting banks to make digital transformation. 

  The novel coronavirus has forced business and economy into lockdown. It has compelled banks to reconsider their process of their business and make good use of technology to ensure their operations. Digital bank is a good platform to allow clients to do their process more easily and more effectively without going to the bank in person.  

  Under the trend of digital popularity, many banks starting their digital banking innovation. Russian bank Tinkoff has offered a service named Surviving Quarantine, which provide discounts and subscriptions for film, fitness and online courses to their clients. This kind of digital finance service has achieved success due to the Covid-19. Tinkoff reported that there are 1 million clients has registered their accounts in the first three months of this year. Moreover, Standard Chartered has paid more attention to customers’ safety and security, which ensure the productive of the digital bank (Wright, 2020).  

  With the increased demand of digital products and services, banks have been moved to invested more in technology and updated their products. United Bank for Africa shows that they have update their APP so that their clients can do more on their mobile phone at home. With the improvement of mobile APP and internet banking, most finance transactions can be completed through digital banking. Callistus Obetta, group executive, tech and services at FirstBank, says that more than 85% of customers would like to use digital bank to transactions and it is important for the platform to keep safe and stable, because the digital banking is not only related to their customers’ business, but also as the platform for their employees who working remotely (Nwadike, 2020). 

  According to McKinsey & Company, before the pandemic, 60% of customers used the digital bank tools in 2019. Moreover, due to quarantined customers used digital banking, Apple Pay’s active accounts increased tenfold. These data show that Covid-19 has brought unprecedented opportunities to the development of digital banking. 

As the digital banking clients increased, more and more companies are committing to developing their own digital banking system and online payment system. Google reports that they will offer digital checking to their US clients in 2021. Amazon and Facebook also are trying to use this way to attract more customers. And according to McKinsey survey, Amazon is the most reliable company, which is 65% of customers would like to choose Amazon to meet their finical needs (Gross & Elana, 2020). 

 

 

References: 

Gross, E. L. (2020) ‘Google Pay Partners With Six More Banks With Digital Banking On The Rise’, Forbes.com, p. N.PAG. Available at: http://search.ebscohost.com.queens.ezp1.qub.ac.uk/login.aspx?direct=true&db=buh&AN=144902899&site=eds-live&scope=site (Accessed: 16 October 2020). 

 

Wright, G. (2020) ‘Covid Raises The Digital Ante: The global health crisis is forcing banks to accelerate digital transformation. Customers are responding’, Global Finance, 34(8), pp. 22–24. Available at: http://search.ebscohost.com.queens.ezp1.qub.ac.uk/login.aspx?direct=true&db=buh&AN=145743067&site=eds-live&scope=site (Accessed: 16 October 2020). 

 

Nwadike, M. (2020) ‘Covid-19 sparks digital banking rush’, African Business, (475), pp. 44–45. Available at: http://search.ebscohost.com.queens.ezp1.qub.ac.uk/login.aspx?direct=true&db=buh&AN=144393654&site=eds-live&scope=site (Accessed: 16 October 2020).