Mobile banking up 20% during COVID outbreak: banks to accelerate digital transformation to meet consumer demand

Mobile banking up 20% during COVID outbreak: banks to accelerate digital transformation to meet consumer demand

Social distancing, stay-at-home orders, and lockdowns during the current health crisis have restricted the movements of more than 3 billion people worldwide, almost half of the world’s population - and banks are affected, even in places where they are allowed to remain open.

In the UK for instance, banks including TSB report closing ~20% of their branches due to staffing shortages, and more have limited their hours.

In the US, banks like Chase and Bank of America are reporting extremely high call volumes, and are encouraging customers to use their mobile apps as much as possible.

Data from China showed a 20% increase in mobile banking in February
Source: McKinsey

McKinsey’s March 2020 article analyzed where Chinese banks saw success, and recommends all banks urgently boost digital capabilities to meet consumer demand and keep customers engaged and informed while they are stuck at home:

Across the board we’re seeing digital transformation accelerate at a crazy pace as companies adapt to this new normal. Dean Nicolls, VP of Global Marketing for identity verification solution Jumio, wrote in Forbes that his team is seeing “significant upticks in banking, financial services and online gaming over the last few weeks”

Digital engagement is booming since March, with “significant upticks in banking, financial services and online gaming over the last few weeks” Source: Forbes

Changes in behavior that would normally take years or decades to crystallize are happening overnight, and present an opportunity for banks and other industries to get innovative in the way they think about the digital customer.

At Brigr we wrote earlier this year about ways telcos can leverage the growing ecosystem of emerging tech startups in AI and virtualization to meet evolving consumer demands, including in key use cases like mobile banking.

In the US, the share of Millenials using mobile banking was already anticipated to be 77.6% by 2022 and we anticipate this number to rise even further. For telcos, this should put solutions to enable mobile banking high on their priority list for digital transformation.

It’s more important than ever for telcos, banks, and app developers to be agile and adaptive -- check out our blog for more trends and opportunities we’re tracking across the digital world!