Digital Banking

Post-pandemic: Will your customers be digital converts?

Customers during the pandemic have become more comfortable in a digital world, even if that was not their preference prior. Will these "digital converts" continue to bank this way or go back to a more traditional banking operation?

photo provided by iStock

June 2, 2020 by Pat Shea — Editor, NetworldMedia

When my mother turned 80, her attitude was, "At this age, I can say and do what I want," which was pretty much how she lived her life from then on. But now I watch my uncle, who is nearly 80, and a self-made businessman all of his life, who only dealt with cash and checks but now calls me up and says, "Guess what? I can download an app and just make my deposits from home."

Now you know that, and I know that, but my uncle was a man who resisted digital and mobile technology for a good portion of those 80 years. He only carried a cellphone (I should clarify, he carried a flip phone model for several years until my cousin literally hid it and gave him a smartphone in March).

Despite my career in payment processing, he would shake his head saying, "Digital banking can only lead to someone stealing your identity." And that was his position, at least it was until the pandemic.

Now, he is Mr. Digital. He advises me what apps I should use and report on and even talks about how he makes deposits and transfers funds right from his kitchen table. This was a man who never felt comfortable with a debit card and now he's tapping and swiping for everything from groceries to gas. But everywhere he goes he carries hand sanitizer and wipes, just to be, as he says, "on the safe side." He still visits the ATM at his bank branch because he likes the idea of having cash, but for the most part, he's a digital convert.

It's interesting that it took a pandemic to push my uncle into the "now" when it comes to his business and personal banking, but it also shows that when there is no option, a person will learn what is necessary to get things done. But will the change be permanent? How will our industry change post pandemic? Will your customers be digitally converted or a hybrid of traditional banking and digital?

One thing I am certain of is that banking will be focused on safety. I am getting a lot of sanitizing product releases as companies are working on new ideas to assure customers that it is safe to bank at ATMs or branches.  I saw one release on a standup temperature monitor so that both staff and customers can be checked before heading into a business. The world has changed but how will those changes affect you, your business and your staff?

Your company may not cater to people my uncle's age but what about Baby Boomers and Gen Xrs who choose both digital and traditional banking or the"digital natives" known as millennials and Generation Zrs? How will you reach them?

We have a mix of all of these age groups in my family and it's interesting that we all view banking and money differently. I constantly nag my digitally native 29 -year-old son to carry cash on him, in case of emergencies, but he often just rolls his eyes. "I have my card on me, that's all I need."  My 18-year-old Generation Z niece recently looked at her graduation check from me like she was looking at a fossil (which given our age difference that's the norm) and said, "Why don't you just Venmo me? It's so much easier." And myself and my siblings are a mix of Baby Boomers and Generation Xrs, and we tend to use both digital means and traditional banking depending on the circumstances.

I personally believe there will always be a customer for traditional banking (or for as long as us Baby Boomers and Gen Xrs are around)  but in order to preserve this industry, we also need to explore and embrace new technology and innovation to keep all aspects of the population engaged, and more importantly now, keep them safe and healthy.

What is your business doing to move forward? Have you changed your practices, purchased new equipment, changed your floor plan and operation policies? Let me know; I'm interested to hear. And so is my uncle.

About Pat Shea

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Pat Shea is the editor of ATM Marketplace. Pat has been an editor and writer in mass market and trade publishing for more than 25 years. She has won press awards for her newspaper reporting and feature writing in corporate communication publications.

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