A Growing Digital Mandate
Written by Beth Robertson, Managing Director
To say that most of us never expected anything like what has occurred during the COVID-19 pandemic is an understatement. The coronavirus has been and continues to be a significant disruptive event that is driving new behaviors for consumers and businesses. Digital channels are one area of dramatic growth encompassing everything from education to grocery shopping to banking. Witness an array of recently released national and regional banking stats detailing digital achievements:
Bank of America’s Third Quarter Earnings Presentation highlights digital engagement noting online banking logins up 9% over the prior year; more than doubled use of the bank’s best-in-class virtual assistant, Erica, and an increase of 1.9 million users since Q2; 85% of deposits completed via digital channels and nearly 1 million new users of mobile check deposit; a more than 70% year-over-year increase in Zelle transactions; and a record high number of appointments (688,000) scheduled through digital channels.
U.S. Bank also features digital growth in its Third Quarter Earnings showing that digital loan sales have risen from 36% of the total to 54% since last year; 76% of customers are considered to be digitally active, and digital transactions represent 76% of total transactions versus 67% the prior year.
Citi’s Earnings Presentation for the Third Quarter reports a 10% jump in mobile users and a 6% gain in total digital customers versus one year ago. The bank also indicates that its annual agent contact rate, defined as the number of agent handled inquiries divided by the average total number of active accounts, has fallen to .98 from 1.22 one year ago.
Huntington’s Third Quarter Earnings Presentation opens with a commitment to build “the leading, people-first, digitally-powered bank.” The bank cites active digital utilization including a 25% increase in digital logins, a 10% rise in mobile users, and a 7% gain in the total number of active digital users year-over-year.
Truist spotlights digital advancements with combined Third Quarter numbers from BB&T and SunTrust showing 21% growth in digital sales, an 8% expansion in the number of active mobile app users, and a 23% increase in mobile check deposit volume since 2019.
Citizens’ Third Quarter results report that more than 60% of all retail applications are now completed digitally, and the bank states that new transformation initiatives include further enhancement of “front-end digital capabilities to create frictionless customer experiences, drive sales.”
TD Bank cites14.3 million active digital customers in North America, a 20% increase in digital engagement since last year and more than 57% of customers now using mobile and online banking.
Online banking adoption is also rising at KeyBank where 60% of consumer clients are digitally active, and digital sales have increased 50% from a year earlier.
The change in habits is not going to abate once coronavirus fades, although, notably, all users do not expect to continue their increased digital transacting. This point alone is a call to action! Not only do providers need to meet the requirements of today’s COVID-restrained lifestyles, they also need to prepare to support the demands of tomorrow’s digital transactors. As Jane Fraser, the newly announced future CEO of Citigroup recently explained, her company needs to “invest in and enhance [its] infrastructure for a fully digital world….”
For financial service providers, the mandate is clear: digital options must enable efficient access to services and information so consumers and businesses can effectively research products, open accounts, accept and deposit payments, get account information, transfer money and make payments, update the services they use, self-service across an array of product options, and readily engage with customer support when it is needed. 2020’s coronavirus-constrained environment has shown that well-advanced digital tools and strategies have helped organizations support their customers and prospects during this difficult period. However, ongoing digital transformation will be essential to responding with agility to emerging future needs.