A recent study has found that online banking has had a substantial boost in the COVID-19 pandemic. As most banks have closed during this time, the existing trend that had been taking hold has been accelerated, as more consumers have moved to digital banking services.
This is something that’s already been happening in the last two decades. For example, one study in 2019 found that only 20% of consumers would choose a bank over a digital channel.
Now, according to the digital banking study by US-based analytics firm FICO, more consumers than ever have embraced the wide range of digital banking tools available to them.
Furthermore, there has been a sharp increase in people opening accounts online rather than going to a branch. And, more people have opened up to the idea of biometric procedures like face scanning or fingerprints to protect their identity and ensure account privacy.
Expectations are changing
Another key finding of the survey was that, because of this shift towards online banking services, consumer expectations of these services are rising.
As more banking customers rely on digital banking features, they have started to expect much better service with a seamless and uninterrupted experience. This is the case both when opening accounts digitally and when accessing their accounts using a mobile app or website.
Additionally, many users are unhappy when asked to use additional channels. The study found that around 25% of respondents will stop using a particular bank if they are asked to visit a branch, send documents by post, or scan documents and send them by email.
These tasks are sometimes required to confirm the user’s identity. But, it is often seen as an inconvenience that many users would rather avoid, especially if a competitor is offering a better customer experience or more straightforward service.
Liz Lasher, vice president of FICO, noted, “Consumers’ expectations have shifted, placing a higher priority on having a seamless and engaging digital experience.”