The Pandemic Has Reshaped How We Use Banking Services
3 October 22
Have you ever stopped and wondered how much your habits have changed after the pandemic? It changed how we work, travel, communicate, and even greet each other.
The services that we use had to adapt as well. For example, food delivery services have exploded. Also, whenever entering the premises of any enclosed business, the very first thing you see is hand sanitizer.
It is safe to say that banking services had to adapt as well. Even though many features of online banking were already in use before the coronavirus pandemic, some people were reluctant to make the switch to digital banking.
Here is the overview of the five main banking channels and how they changed and are predicted to change between the years 2020 and 2024.
1. Let’s start with the most conventional banking channel – the branches. In 2020, there was a significant drop in penetration through branches, due to government restrictions and the need for contactless service. Insider Intelligence predict a drop of US branch penetration from 70.1% in 2019 to 62.3% in 2024.
2. Moving on to ATMs, it is likely that the drop in usage of ATMs in the US won’t be nearly as significant and in some cases it may increase. This is due to the sheer number of ATMs and the limited human contact involved in using it. According to Insider Intelligence, we will see a slight increase in ATM penetration from 71.2% in 2019 to 71.9% in 2024.
3. Smartphone banking has exploded in 2020 and is likely to grow with continued development of mobile banking in the post-pandemic world.
4. Call centers had some of the largest increases in penetration in 2020 of all banking channels. It is predicted that the penetration growth will slow down but will stay above the pre-pandemic levels.
5. Lastly, digital banking. It is very likely that the growth of digital banking will taper off when coming closer and closer to the saturation levels. Nevertheless, new consumers will continue to be attracted to digital banking due to the ease of use and time saved compared to physically going to a bank branch. In 2024, Insider Intelligence forecasts an increase in penetration of around 13% when compared to 2019 levels.