Consumers increasingly prefer online banking, but banks bet on modernization is not yet evident

In the midst of a global public health crisis, online and digital have been helping to ensure people's physical distance. The banking sector is no exception and 57% of consumers now prefer online banking, when before the pandemic this figure was 49%. The data are from the World Retail Banking Report 2020, which also reveals that banks using digital platforms consider it to be twice as easy to increase operating results, unlock new sources of revenue and improve levels of operational efficiency.

The investigation by international consultant Capgemini and the world non-profit organization European Financial Management & Marketing Association (Efma) refers to a historic transformation in the financial sector worldwide. This reality is due to new digital and non-traditional players, who are gaining market share and redefining the market rules that were established in this area.

The COVID-19 pandemic has further accelerated this movement. Analyzing the data, in addition to the increase in consumers who now prefer online banking, 55% of the primacy is mobile banking apps, against the previous 47%. In the current context, more and more private consumers prefer digital banking services.

Banks want to grow? Platform-based models should be the option of choice

The study also suggests that banks should opt for platform-based models to drive the growth and innovation they need to remain relevant and competitive. The adoption of Open X, that is, an open platform approach in which stakeholders, regardless of their size and sector of activity, work in partnership, considers it critical for banks to be successful in the long run.

Anirban Bose, CEO of Financial Services at Capgemini and Group Executive Board Member, reinforces the idea of ​​a new era for the sector and explains that consumers expect banks to provide them with a "transparent digital experience". Banks that invest now in the modernization of their basic technology and that make it evolve to a similar experience of platforms, will satisfy their customers more and better and, consequently, their businesses will be more profitable, he considers.