How the coronavirus pandemic accelerated the future of digital banking?
Crises have always been a catalyst for business innovation. History remembers prominent examples of successful companies being born in the hardest time of economic depression – from century-old mastodons like General Electric (launched in 1892) and IBM (launched in 1911) to massive startups like WhatsApp, Groupon, Instagram and Uber (and many more) founded during the 2008 Financial Crisis.
Although being known as conservative and resistant to challenges, the banking industry didn’t remain immune to such business model disruptions. The last global economic distress, combined with exponential technological advancement and millennial start-up mindset, fueled the appearance of the first pure digital-only players. Tech companies like PayPal, N26, Revolut and Chime (to name a few) not only entered the banking scene – they took the innovation one step further by putting the customer experience in the hearth of their agile operations.
The COVID-19 pandemic speeded up the trend by shifting overnight the global market sentiment to favor these new digital business models that are better-suited to the new order of social distancing. With only partially digitized functions and operations, Banks have to play a catch-up role in this pursue for delivering the best customer experience. To address the challenge and take their business model to the next level, banks must evolve and do so quickly. This article explores some short to medium term strategies on how to address best the evolved customer needs while improving operational efficiency on the path to the next New normal.