How the quarantine represents a moment of reckoning for app-based banking.
As the world shuts down and we brace for our new normal, one reality still exists. We still need our money. And the way we need to access and use it now relies on digital banking more than ever.
Much has been written on how the global pandemic will accelerate global trends. Arguably, one of the ones that can be seen most prominently is the rapid rate of digital banking adoption. With social distancing obliterating our reliance on branch visits, our phones and laptops are filling the void of branch visits for loans and account openings.
Economies such as Singapore and Canada have already seen a rapid uptick in digital banking adoption. In Singapore’s case, they have even seen a rapid adoption amongst seniors. Canada is also seeing mortgage renewals being handled online. The pandemic might just end up tipping the scale, letting people become more comfortable with large transactions and loans being handled entirely in cyberspace.
One thing is for sure is that for the foreseeable future we are in the age of the death of the physical bank branch. Quarantine is keeping us inside and away from the queues at the ATM. And that in itself represents a huge departure from our previous financial existence. Undoubtedly, however, what takes place in the months to come will be a crucial plotline in the story of fintech.