The pandemic is accelerating the use of online banking, with both individual consumers and business leaders agreeing the changes appear permanent.
A survey by Citizens Bank shows 50% of consumers and 76% of businesses said that the COVID-19 pandemic has changed the way they interact with their financial institution.
And 66% of consumers and 73% of businesses feel that these changes will be permanent, the survey showed.
“We’ve seen our digital channel go up 25% and the pandemic has just accelerated it further,” said Beth Johnson, chief experience officer at Citizens Bank. She added people are becoming “more comfortable” with online banking.
That’s forcing banks to update online portals and what Johnson said are “omni-channel” features that include videos, mobile and phone features.
The survey hits as businesses are looking to adjust to the social distancing forced by the coronavirus pandemic. It also means bank tellers and branch offices will be forced to change how they serve customers.
And, said UMass Amherst economics professor emeritus David Kotz, it could also mean “fewer jobs in banking.”
“People are driving less and can do banking faster online,” Kotz added. “It’s the front-line people who could lose their jobs.”
Yet, the nationwide survey of 1,091 consumers and 252 business leaders also found that while the pandemic is pushing everyone toward digital banking, “human interaction” is essential when it comes to getting financial advice or for complex transactions.
“The COVID-19 pandemic has accelerated and solidified a transition in how customers behave and interact with brands that was already well underway, posing significant questions around how companies can best serve customers going forward,” Johnson said.
“Despite the shift to digital banking,”she added, “it’s clear that personal interaction remains important to customers so financial institutions must find ways to serve them seamlessly in their channel of choice.”
That personal interaction also comes as mortgage rates hit 3.09% on Friday for a 30-year, fixed-rate loan and 2.74% for a 15-year, fixed-rate deal, according to BankRate.com.
Other loans, for home improvement or to pay off credit card debt, are all products banks are pushing to keep the doors open.
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