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The pandemic has turned the world around with so many changes in the way that consumers deal with their financial life. Needless to say, online banking and the use of digital apps is here to stay.
Although online banks are convenient and safe to use, they do face some obstacles and challenges that they need to address as soon as possible.
Consequently, the clients have to stay aware of what these platforms can deliver and what to expect from online banks in the future. One thing is for sure, physical banks are not restricting their timings and access. Therefore, customers will be experiencing more virtual contact with these institutions.
The situation of financial insecurity that the pandemic created has forced customers to look for new online banking options that allow safe transfer of funds and provide sufficient money management tools.
As a result, large financial institutes can see a boose in the number of customers turning to their online portals. If they fail to provide the digital tools that the clients are on hunt for, it might lead to considerable loss of accounts and customers.
So to say, the banks now need to develop stronger relationships with their clients through reliable and seamless digital tools. This conclusion stems from the fact that at least 90% of account holders have shared that they prefer to manage their finances digitally and a majority of them agrees that online banking helps them feel more confident and secure when making payments.
Online banks are not also actively working towards encouraging savers, simplifying bank deposits, and providing some rewards to the customers who tend to stash the savings in their accounts.
For example, many banks have come forward with extraordinary interest rates that customers can earn on their savings at a monthly rate.
You can totally expect the banks to turn this into “games of savings” by utilizing a handsome amount of interest or even offering interesting payouts to some savers over time.
Online banks guarantee safe transfers such as from Chime to Cash App. However, it is still a hot topic of debate whether these platforms are actually as secure as they seem?
According to recent surveys in the US, online banking opens more doors to frauds and it is expected that there will be an increase in identity theft, social account breaches in the coming years.
Pandemic forced us into isolation, financial pressure, loss of employment, and whatnot. Under these circumstances, online entertainment has become common with more people engaging with websites and even other accounts that they don’t personally know or have no reputation to trust.
Luckily, large companies and financial institutes have evaluated the situation and they promise to solidify their consumer protection regulations. This gives us some hope that online banks would be safe from frauds and scams.
It is obvious that contactless payments, digital banking, and online transfers of money would become more common but that does not guarantee that physical branches would be any less important.
The operation at most physical banks have been disturbed but you can expect them to make a come-back once the situation settles down.
However, some analysts do believe that online banking would be enough to satisfy the needs of most clients who will be less likely to opt for a visit to the physical branch.
Well, perhaps time will tell?
We are quickly moving towards a permanent lifestyle change and going through the pandemic has accelerated the speed. It is hardly likely that the banking industry would ever go back to being what it was.
Although digital banking has always been here, the situation at hand has converted it from a bare nicety to a necessity. Now banks are thinking about enhanced digital support, self-service, interactive teller machines and innovations that don’t seem to have an end!
The reality seems to be changing at an extraordinary pace and there is no slowing down!
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