How has Coronavirus pandemic strengthened the mobile banking?

The phrase “crisis is opportunities” has become a banal statement in journalism long ago. I won’t use it as hackneyed argument, only as an obvious prerequisite for more reasonable statements.

The banking sector knows a lot about the survival during a crisis — far from everyone withstood the sector purification, but the most powerful, innovative and flexible banks that had invested in new levels of customer experience. In terms of all this, we cannot leave out of account the mobile banking. The coronavirus pandemic caused an unprecedented increase in online, which has become not just convenient, but a necessary condition for work during the quarantine. Today we’ll talk about this story on a global scale.

FinTech day in the sun

According to deVere Group analysts (quoted by Forbes), there is a 72% increase in the use of fintech apps in Europe. Put it otherwise, while many sectors of international economy try to remember the meaning of the term “world economic crisis” (and after all, many startups don’t even remember 2008, they simply didn’t exist then), fintech actively comprises tech clients, who didn’t want to use online fininstruments for a variety of reasons. Almost all analysts agree that the main long-term consequence of coronavirus is the ubiquitous online society with regard to goods and services. To paraphrase one proverb: new habits will die hard.

The fundamental adaptation to life in self-isolation affected everyone. And if Kiev is already gridlocked, as before quarantine, the streets of American and European cities are still half empty.

Crisis is crisis. But it is online now.

Coronavirus has provoked absolutely standard phenomena, but “repacked” them under new conditions. For example, crisis investment in gold has not disappeared. MarketWatch has published the Glint Pay app case, which increased 718% in one week. Banking applications in Asia and the Middle East have also reported an increasing use. The cases of double growth of users are not unique. Work, communication with friends, household chores — if it could be three separate locations before, now the apartment / house is the center of life. And many will not exchange its advantages in saving time for previous habits after it will have receded.

Mobile banking embraces even its opponents

I often talk about non-banking customers — those who cannot or do not want to use online payments. During coronavirus pandemic, they simply had no choice. According to UK market research, during the period from March 14 to April 14, due to the worldwide quarantine, about 12% of the UK adult population (6 million people) downloaded their bank’s applications for the first time. Another 200,000 Britons first downloaded their bank’s app. 22% began to use the application more often, while 5%, on the contrary, less often. 62% of the former increased their use by more than 10% from the beginning of the quarantine, and 11% use them for more than 50%. That’s just the way it is.

CEO of the international payment system LEO, the shareholder of IBOX Bank