June 18, 2020

Cov-19 Response: Banks will have to rise to new digital expectations

Face-to-face-only banking customers are becoming the exception. Only 46% of consumers are expected to go back to “banking as usual”.

“Customer behaviour has changed permanently in the wake of the CV-19 crisis and banks will have to rise to new digital expectations”, Teodor Blidarus, Founder and CEO of FintechOS said during a webinar on how COVID-19 is shaping the banking of the future.

”Finance Forum: How COVID-19 is shaping the banking of the future” was organized by The French Chamber of Great Britain, one of the most active business networks in the UK. It was co-hosted by Nigel Mogen, EMEIA Banking & Capital Markets Leader for Financial Services, EY and John Peachey, Managing Director – CFO Global Markets, HSBC Bank Plc (moderator).

All panelists – you can find their main ideas below – agreed that Covid-19 is a massive accelerant to many of the transformation themes and that we will see more collaboration between banks and fintechs.

Webinar highlights: 

Teodor Blidarus, FintechOS:

  • End-to-end customer experience goes through a top-down transformation
  • We need a customer-centric view approach and change the way we do banking and harvest data
  • Lending is becoming critical when we talk about legacy systems
  • The most sought-after role is digital product manager. It is not a traditional one, it requires digital savviness
  • The way we interact and surface financial services will change. There is no way back.
  • The market is going to evolve. Startups will focus more or less on niches. We will see more collaboration and ecosystems.

 

Nigel Mogen, EMEIA Banking & Capital Markets Leader for Financial Services at EY

  • Getting back to normal will require consumer confidence, but consumers are concerned about their financial position.
  • Banks quickly mobilised support to customers (more than half a million support loans in the UK alone). This was despite workforce reductions, reduced capacity and a significant increase in call centre volumes.
  • Covid-19 is a massive accelerant to many of the transformation themes that were already being progressed
  • We will see ups and downs in the following months. There is a common determination to work together – governments and banks. Overall, I am kind of optimistic.
  • Banks have been affected by Covid-19. The incumbents are challenging banks. We will see more collaboration between banks and fintechs.

WATCH the recorded session here.

Business context

  • Globally, the evidence shows that face-to-face-only banking customers are becoming the exception.
  • The share of digital and hybrid banking customers has jumped over the past few years: in 2015, they made up 65% of all customers; the figure hit 88% in 2019.
  • In Western Europe, the trend is just as clear. (BCG, 2019, Global Retail Banking 2019: The Race for Relevance and Scale)
  • According to J.D. Power, quoted by The Financial Brand, only 46% of consumers will go back to “banking as usual”, while there’ll be a 20% increase in mobile and 17% rise in online banking.

 

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This debate is part of a series of thought leadership pieces on digital transformation. FintechOS has been talking to leading companies from incumbents and start-ups, to accelerators and consultants, to get to the heart of this topic. 

  

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