The COVID-19 pandemic has changed people and their lives permanently. This is obvious in every metric and all markets. Consumer behaviors are not the same as pre-pandemic times. This is true in the banking sector as well. As a direct result of the pandemic, the volume of digital transactions has increased drastically.
Banks have been in a slow process of digital transformation. But that has been dramatically accelerated during the pandemic due to evolving customer needs. The customers are slowly causing cash and checks to become obsolete and banks are rushing to adapt their services accordingly. The customer behavior in banking has been changed in many ways.
Bahaa Abdul Hussein looks into some of them as below:
Day-to-day Banking Experience
Due to enforced social distancing during the pandemic customers were reluctant to leave their homes. As a result they shifted to transactions online or through mobile apps. The banks have by now created the necessary infrastructure to support these changes. But they are now trying to understand the customers needs in terms of the quality of the virtual interaction and environment. New innovations are needed to provide a satisfactory customer experience in this virtual domain.
Transaction Flexibility
Because the customers are now used to the digital interphase while making transactions, they are looking for quicker and more flexible options. Convenience becomes a necessity once security of a transaction has been guaranteed. So banks are shifting to subscription based systems which offer more flexibility including biometrics. Similarly, transactions at ATMs are also evolving with customers starting to appreciate contactless alternatives.
Rise Of Digital Payments
Digital transactions are not new. More and more people have been opting for it over time. But the pandemic has supercharged the process. Many people now prefer non-contact digital transactions. The banks have managed to stay on top of the sudden surge in digital transactions. But in the future the resulting upgrades in the infrastructure will make it more resilient.
Serving Yourself
All retailers provided cashless transactions during the pandemic. Self-checkout and self-shopping devices became common and customers became used to it. Now ATMs and banking kiosks are evolving in a similar direction as customers primed for self-service. It also forced banks to consistently innovate in their digital service.
Banking Responsibly
The changes in customer behavior due to the pandemic include changes in purchasing decisions. As the banks attempted to change with the needs of the customer, ethics and services became more profitable. So, the banks adopted more ethical and transparent modes of service.
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