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eNewsletter Spring 2020

In turbulent times, remote access for both bank’s customers and financial institutions is crucial. Services could range from opening accounts online, automated onboarding for both investors and consumers, P2P services for loans, to instant payments and contactless operations.

Digital banking is inevitably the way to achieve business continuity and customer satisfaction post-Covid-19 landscape.

According to Omdia Consulting, the Pandemic will accelerate the shift to digital for both customers and employees, in retail banking.  An increase in digital banking penetration, particularly in laggard customer segments will continue to rise. They will effectively adopt new channels, to perform operations safely. The challenge for banks is that much of the current customer support burden is being borne by the contact center and/or loan operations functions, which are being swamped with non-routine queries (such as loan modifications) that historically occurred in relatively low volumes. In the medium term (with pressure to do so in the short term), banks will need to increase the sophistication of their digital banking platforms to allow applications, automated decision making and processing of more complex requests as well as greater integration between digital self-service and physical customer engagement platform channels (e.g. webchat between employees, customer digital banking platforms). Again, this will accelerate the ongoing requirement for digital transformation, leading to greater automation and digitalisation of more complex processes across platforms. Technologies like robotic process automation (RPA) are likely to benefit and be considered by Banks to deploy for more tedious and repetitive tasks.

Technology spending is likely to be considered the best investment in such times to prepare for the aftermath. Cost Control measures need to be thought carefully as PwC also advises, following the lockdown. Many banks, particularly in the top tier segment, are undertaking large-scale digital transformation programs, often involving significant investment, measured in billions of dollars, in digital and technology programs.

According to Financial Brand, the economic fallout from the coronavirus pandemic will impact credit quality, loan demand, deposit growth, fee income and much more. It also raises two key questions for banks and credit unions: Will the accelerated migration to digital channels 'stick,' and if it doesn't, and many people return to branches, can financial institutions afford to keep them open?

How are you coping with these changes? Although unlikely, even if the crisis does not accelerate migration to digital channels, it demonstrates the importance of a consistent service experience across all channels. Banks “should view this as a stress test for their institutions’ channels, and most critically, take observations for improvement along the way.”

Banks would need to focus on business continuity, empathise with customers, manage their loans more effectively, trim cost and reset revenue honed to a successful post-Covid-19 strategy.

Visit our Banking solutions and read more on how Profile's solutions can support current and future operations for digitalisation to better promote loan management, onboarding and banking operations in retail that would safeguard your business.

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