It is increasingly clear that the entire banking ecosystem and the way consumers interact with financial organizations have been shaken to the core as a result of COVID-19. We will look back on this period as a tipping point between the period before COVID-19 and the new normal that emerges in the post-coronavirus era.
In much of the pre-COVID-19 research conducted by the Digital Banking Report around digital transformation, customer experience, use of data and advanced analytics, innovation and technology, it was clear that industry leaders knew what needed to be done, and in many cases, how to proceed. There just was not the urgency to take action since we were in prosperous times. Everything changed with COVID-19.
In the ‘new normal’ period, we have witnessed an environment where the way work is completed, how consumers bank, how employees learn new skills and how brands are perceived are all different. The degree to which these changes take root will be driven by both business and societal dynamics as well as how long it takes to move to a new equilibrium.
In a special report, After the Virus, Cognizant’s Center for the Future of Work examines the implications of COVID-19 five years from now as it relates to work, education, entertainment, e-commerce, human engagement and the environmental agenda. Using these insights as a foundation, it is possible to build a perspective of what the banking industry must do in the days, months and years ahead to be in a better position for the future.
A World That Became Digital Overnight
Before COVID-19, the banking industry did a great deal of talking about ‘becoming digital’, but less than 15% of organizations considered themselves digital transformation leaders. In fact, during the long lasting recovery and prosperity experienced for more than a decade post financial crisis, very few organizations ‘bit the bullet’ of building a digital-ready bank.
When the coronavirus pandemic hit, everything changed … overnight. Organizations were forced into not only providing consumers digital banking alternatives, but employees as well. As Cognizant mentions, “Everything that could move online, did move online.” For those organizations that were not prepared, new business opportunities were lost, customer satisfaction suffered and employees were inefficient.
Rather than simply adjusting to a new world order, many organizations have found ways to move beyond what was thought possible in the past. A great example is how teachers, no longer held to previous universal testing standards, provided students the opportunity to explore far beyond a set curriculum … making learning fun again. In banking, more collaboration was done using video technologies, speeding up innovations that used to…