Since the COVID-19 pandemic began last year, many banks fell victim to the impact of national lockdowns, causing them to switch their in-person interactions to ones of a digital nature. Consumers that once visited the bricks and mortar branches of their local bank had to adapt their practices and resort to online banking. Arguably, the digital age of banking was on its way. However, the pandemic significantly escalated its arrival. Now the world is gradually becoming more ‘normal’ are people resorting back to old habits and returning to in-person banking, or are they converted to the world of online banking for good?
Why is online banking the new trend?
Without a doubt, the convenience of online banking and online banking apps is a huge selling point. Accessing your bank account on your phone, tablet, or laptop has been invaluable throughout the past year. Not only this, but if you travel to an area without a bank, you can manage your transactions on the go rather than visiting your local branch. Advances in technology have meant that banks can digitize most in-person banking features.
However, it is not just existing banks that have moved their business online. Companies offering e-accounts with a solely online presence have taken advantage of the new online banking popularity. Targeting customers that would appreciate the competence of managing their banking exclusively, they promise their customers a fast, reliable, and efficient experience. Not only this, but traditional accounts are also becoming outdated as prepaid cards have started emerging. Prepaid cards are not linked to a typical bank account and operate on a more ‘pay as you go’ basis. For those that would prefer it, prepaid cards don’t have an overdraft or loan feature meaning money can get paid in and out at your control. This makes it a much safer option for those in financial turmoil because getting into debt is impossible.
Why is traditional banking still going strong?
Traditional banking remains popular with a certain percentage of the population. Many people don’t have access to technology, don’t know to use it or don’t want to use it. So for those people, online banking is redundant. Therefore, traditional banking will never become archaic as there will always be some people that require a more traditional service. As well as this, bricks and mortar banks have earned customer loyalty over time, something new online banking platforms will struggle to compete with. Their customers trust their service and have developed a strong business and customer rapport. Online banking platforms may find it hard to duplicate this longstanding customer relationship. However, as online banking increases in popularity, this may be possible.