With COVID-19 hitting the world hard in 2020, many industries, including the banking sector, faced economic challenges and disruptions they never expected.
While the damages were severe and may take longer to recover, businesses are already trying to get back on their feet as the pandemic gets contained.
The banking sector is also in the quest for creating new sustainable measures that can enhance post-pandemic banking growth.
Here are some shifts that would reshape the banking sector post-pandemic.
Going Completely Digital
During the better parts of the pandemic, customers realized they don't need to be physically present at the bank branches to get served. At the time, most of the bank's operations switched to digital to meet the demand of stay-at-home clients.
The pandemic is getting contained and most banks are resuming normalcy. However, consumers' reliance on mobile banking isn't likely to reduce, thanks to its efficiency. Customers no longer want to experience tedious paperwork or spend time waiting in line for assistance in physical branches.
The customers enjoy faster e-payments, access to bank-related information from everywhere, and the ability to do all financial transactions on their devices. Banks benefit from operational cost optimization, efficiency increase, and better customer relationships.
As such, the digital banking demand will keep soaring past the pandemic. Therefore, traditional banking sectors need to reconsider their banking strategies to tap into the ever-growing digital market.
Addressing Security Issues in Digital Banking
The cybersecurity threat has grown tremendously with the increase in digital banking. Digitization has left loopholes for cybercriminals to attack both the banking institution and customers. With companies already losing millions of dollars to cybercriminals, there's an urgent need for the individual and commercial banking sector to up their cybersecurity measures. They must ensure customers' financial safety.
While banks may recover from phishing and data breaches, the attacks may shatter customer's trust in the banking institutions, leading to a mass exit.
Though heavy investment in cybersecurity isn't cheap, it's a must to keep customers' credentials safe. The security concern calls for banks to invest in:
• Antivirus and antimalware applications
• Integrated security
• Employees and consumer awareness
• Embracing data encryption and cloud-based data protection
• Machine learning and Big Data analysis to leverage cyber resilience
With the pandemic came the reality that the future is uncertain and unpredictable. Therefore, banks must now understand that the fear of the unknown is present in their employees' and customers' minds. Employees are worried about losing their jobs during hardships. Meanwhile, the customers are afraid their favorite bank could collapse with all of their money.
Hence, you have to do everything in your capacity to alleviate the fear. Assure them that you're in it together and can both learn to lean on each other should the worst happen.
Therefore, there's never been a better time for banks to reevaluate their leadership skills to solve the employees' and customer's worries, building a lasting relationship with them.
Focusing on Sustainability
With the pandemic comes the understanding that things can change pretty fast. Without sustainable living, we may face problems worse than COVID-19 in the future.
Post-pandemic banking is a chance to shift towards adopting solutions that work in the future. Being socially and environmentally aware comes at the forefront of the sustainability plan. Besides, today's customers already expect companies to understand their unique needs and expectations. And one of the customer's greatest expectations is seeing their company promote sustainable living through transitioning to a low-carbon economy and so on.
Let's Move Towards Post-Pandemic Banking Together
At Commercial Bank of California, we value relationships. We partner in your success and your struggles. Your vision and goals for post-pandemic banking are our vision and goals. So we choose to listen to you during these trying times and help you achieve your dreams. Talk to us and we shall hear.