Shift To Online Due To Coronavirus Pandemic Is likely To Stick
Lockdowns and stay-at-home measures from governments around the globe prevented people from conducting face-to-face transactions. People relied on the internet for almost everything.
Food and other necessities are ordered online though available gadgets like mobile phones, tablets, and laptops. Financial transactions relied on online software and platforms. People, regardless of age, shifted to online banking because it is the only option.
Online banking created outages
CNBC reported that the sudden increase in online and mobile traffic created outages, and some of the online platforms affected include U.S. Bank, PNC, Fifth Third Bank, Bank of America, T.D. Bank, and BB&T.
Fidelity National Information Services (FIS), works with 50 top banks in the world, revealed the 200% increase in new mobile banking registrations and 58 percent in mobile banking traffic last month. The coronavirus pandemic caused long waiting times in banking call centers, as branches closed, because of the significant increase in calls.
Brandon Larson, managing director at Novantas, said that they see hiccups related to the increase in demand from the coronavirus across a lot of the industry. Novantas, a fintech company, gathers big data from bank customers, deposits and markets, and analyze data using machine learning.
It was revealed that Americans checking balance once a week started checking a few times a day. The traffic causes problems when the capacity is raised to 20 times more than the average volume. The director said that the forced digital capabilities and ability put an increased emphasis on digital banking.
Many believe that the online banking trend will remain even after the pandemic. Some banks started to resume operations after their states decided to lift their novel coronavirus preventive measures. Experts believe that the shift to online will remain after the coronavirus crisis ends.
According to a survey from Novantas, following their first use, people start to adopt mobile banking access. FIS division executive Maria Schuld adds that the firm is expecting a surge of users in the United States.
As the coronavirus pandemic forces majority of the country in lockdown, people are starting to turn into mobile banking and mobile financial options. Moreover, the firm believes that even after the lockdown is lifted, people will continue to use mobile banking platforms.
Digital brings opportunity
Aside from the traffic, banks are also concerned about the rising account logins, remote deposits, and online account opening. Jamie Warder, digital banking head at Key Bank, claimed that they see double-digit month-over-month growth in online usage. He said that there’d been a migration over time with more happening digitally, and they’ve seen more increase during the pandemic.
Mr. Warder said that they are also looking to digitize home-equity loans, but they don’t have a way to do it digitally. He revealed that they plan to focus on that area.
The rising demand for online banking services opens a window of opportunity for software developers. There is a demand from banks for new software that could resolve the issues brought by the pandemic. Some banks are interested in software that could connect clients to a bank teller in real-time.
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