Changes in Consumer Behavior Towards Digital and How the FinTech Industry can Support
Businesses from different types of industries have been affected by the COVID-19 pandemic. What was as simple as operating a brick-and-mortar shop is now more difficult to do because the virus spreads indoors and through human contact. Numerous countries have had to go on lockdown, and businesses have had to rethink their models to survive through these unprecedented times. One solution that has proven itself useful is the shift to digital.
Because of the restrictions brought about by the global pandemic, the way people live their lives has changed for the long term. Working from home is now becoming the norm for some industries, and people are switching online. The shift to digital channels ranges from consuming more content online to buying products and services online. The shift to digital has seen an acceleration because of stay-at-home orders. With limited options, consumers have had to resort to shopping online.
With the rise of E-Commerce comes the wide adoption of digital payments and transfers. With the World Health Organization’s encouragement of digital payments, financial institutions all over the world answered the call — some even removing their digital banking fees for a time. Because of the pandemic, people are more likely to use digital channels for paying as it reduces their risks of contracting the virus.
Because of the surge in digital payments, other banking transactions are being done online as well. Neobanks, or even banks that offer more choices concerning online banking, are flourishing because customers are more hesitant to visit the bank for transactions. Opening an account remotely brings great convenience, transacting online via a mobile app more so.
According to research done by GO Group Digital, 24% of consumers will increase the long-term use of digital channels due to COVID-19. For digital to flourish, industries need to work hand in hand. E-Commerce sites, for example, are supported by financial institutions and the financial technology sector as they make payments more seamless.
Digital consumer behavior is here to stay, and financial technology companies like Bank-Genie can make the transition to digital a smooth one.