Many financial institutions are closing branches or limiting access to their physical locations to help slow the spread of COVID-19, which can be highly disruptive for customers who depend on branches to manage their banking needs. To minimize this disruption, financial institutions must offer seamless online and mobile banking services so their customers can manage their financial needs without leaving home.

While many customers have already made the digital shift, there is still a large population who has yet to adopt digital banking. Financial institutions would be wise to engage these customers and introduce them to digital banking. After all, the move to digital is more than just a temporary fix for the global crisis. It is the future. Experts predict that a majority of customers that engage with digital services during this time will most likely not return to their old banking habits when branches re-open.

To talk more about what digital features consumers want, why digital customers are valuable for financial institutions, and some of the best practices to increase digital engagement, PaymentsJournal sat down with Jamie Armistead, Vice President and Business Line Leader – Zelle® at Early Warning Services and Sarah Grotta, Director of Debit and Alternative Products Advisory Service at Mercator Advisory Group.

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Digital Banking Services Minimize Customer Disruption

Digital banking services have been gaining traction for some time, but COVID-19 has brought a new sense of urgency for financial institutions to implement them. For example, a Lightico survey of 1,000 customers recently found that 82% of consumers are hesitant to visit bank branches amid COVID-19, and two-thirds are more likely to try a digital app or online banking service.

In general, financial institutions already have solid digital offerings, noted Armistead, but now is “really an opportunity for them to serve customers who may have been on the fence or haven’t downloaded a mobile banking app, which really highlights the importance of having a speedy, seamless interaction so initial digital interactions are positive.”

Mobile Banking Options are Important to Consumers

Digital and mobile offerings were important to consumers well before COVID-19. The following chart provided by Mercator Advisory Group depicts what consumers feel is important to have in their mobile banking experience, based on a study of more than 3,000 consumers: