CIO Talk News

COVID-19 Impact on Banking Industry

Amit Jaokar, Chief Digital Officer & Chief Information Security Officer, NKGSB Bank

The novel coronavirus (COVID-19) a ‘Human Tragedy’, upsetting over millions of people. It is also having a profound effect on the global economy. This pandemic is triggering prevalent fear and economic adversity for customers, businesses and people across the globe. The situation is changing rapidly with extensive effects.

As COVID-19 thrives and spreads its wings across globe, alternatives to in-person banking and physical banking are looking more and more attractive. Banks, consumers, and governments are pondering upon the risks of in-person banking and opting for digital channels when they have the choice.

Coronavirus challenges traditional banking habits. Increasing use of digital channels, work from home & ensuring the lights are ON is inevitable. Amidst this sudden disruption, in order to ensuring the business is not hindered; the role of security becomes super critical. Surely looking at the circumstances banks or any entities were never more vulnerable than current scenario.

How are banks coping up with this dreadful situation?

Well the answer to this will be the preparedness which banks have done before the crisis when everything was normal, those entities who have prepared well for the unforeseen situation will not only weather the storm, but also emerge stronger and will be leading the show with all services offerings at customer’s fingertips, needless to mention with keeping security aspect as a topmost priority and with no dependency on physical interference to run their business.

Future of banking industry post COVID-19

Coronavirus is fuelling the movement towards digital banking & no bank is exception to it. Technology over the years has evolved & we have seen massive transformation, it has already improved working conditions relentlessly (Way back from 90’s till date). Be it digital, RPA or expedited access to work while exponentially increasing productivity and made working from anywhere easier than ever. It is just that we notice it or realize it during tough times. Technology plays major role in transforming any business; it comes down to eventually how & when you want to leverage it.

Currently with COVID-19 crisis, banks / financial institutions are facing various Challenges. But let me assure you one thing that, whatever the eventual outcome, Banks will learn many valuable lessons about their customers, their own competences, limitations & what’s require to overcome. These things will serve them well in the years ahead.

Traditional banks that choose to learn and take lessons from digital financial institutions will find themselves more prepared to compete with challenger banks both during the coronavirus pandemic and long after it’s over.

Even after the coronavirus passes, digital solutions for banks will have an enduring relevance as the customers, who are increasingly spending time in adopting digital channels will learn by now the way to conduct banking without physical interaction & don’t get surprised if they choose Digital banking over spending time in commuting, crowded public spaces; take efforts to get the things done which they can do seamlessly on their fingertips.

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