How pandemic increased share of consumers preferring online banking

The global financial sector is in the midst of a transformation as digital players continue to win customer support

online banking

How pandemic increased the share of consumers preferring online banking. Source: pixabay.com

Capgemini and Efma have conducted research revealing that 57% of consumers are currently preferring internet banking, compared to 49% before the pandemic. Besides, 55% started using banking mobile apps more, compared with 47% earlier.

The report also suggests that banks need to evolve into platform-based models to boost the growth and innovation needed to stay competitive.

Consumers expect a seamless digital experience from their financial providers, as they’ve grown accustomed to BigTechs2 in other parts of their lives. Traditional banks are being challenged to meet these expectations given that digitally native new entrants focus on customer experience from day one. Banks that invest now in modernizing their core technology and evolve it to a platform-based experience will simultaneously delight customers and grow profitably
Anirban Bose, CEO of Capgemini’s Financial Services and Group Executive Board Member 

According to data, 80% of bank executives cited cybersecurity and privacy concerns as the primary barriers to moving to a platform system. At the same time, 68% and 73% stated about outdated data management and identifying the right partners, respectively.

Meanwhile, 66% of bank executives say it takes 1-2 years to innovate and launch a new concept when working alone. Nevertheless, 58% reported it takes less than a year to launch a product in collaboration with fintech partners.

In fact, 72% of them named regulatory and compliance issues and poor IT compatibility as barriers to effective collaboration.

We’ve reported that the number of cyberattacks on healthcare systems will be rising since the hospitals are shifting to digitalization and remote patient care.

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