back Back

89% of GCC consumers will prefer digital banking post Covid-19: Report

By Leandra Monteiro

July 06, 2021

  • 89
  • America
Share

GCC, digital banking, Backbase, COVID-19, ecommerceConsumer appetite for digital banking services continues to grow in the countries of the Gulf Cooperation Council (GCC), accelerated further by the COVID-19 pandemic, according to a new survey conducted by Backbase with YouGov.

89% of respondents to the survey said that they are now more likely to opt for digital banking services rather than make a physical visit to a bank branch, with consumers saying they prefer digital self-service banking solutions delivered with the same convenience as their ecommerce, entertainment, and transport solutions.

Movement restrictions or closures of bank branches in the early days of the pandemic forced consumers online, and banks responded by rapidly shifting products and services to digital platforms. The research showed that 77% of respondents say that they use digital banking services at least once a week, and 30% uses services once a day or more.

The sudden increase in digital adoption has dramatically advanced the digital transformation agendas for many banks in the region, with banking leaders recognizing online banking services as becoming critical to increasing customer retention and growing revenue streams through personalized services. Consumer expectations from digital banking has shifted from just day-to-day banking services and transactions, to also include more complex interactions, such as remote account openings or subscriptions to new products or services such as getting a loan or subscribing to insurance. However, 31% of respondents say that their bank is weak when it comes to offering seamless access to online banking services, highlighting an area where banks need to step up their performance.

According to Backbase, many banks have relied on rolling out standalone applications and self-contained systems to add new functions and services to their online banking offerings, creating fragmented systems that don’t deliver a good experience to customers. With further digital transformation ahead, financial institutions need to ensure that they have the right platform to manage future expansion.

“As the pandemic recedes, banks have the opportunity to provide enhanced customer engagement online, which will pave the way for physical branches to only deliver more complex, high-value activities. To make sure that they can capitalize on changing customer behavior, banks will need to break free from siloed technology architecture and bring engagement to the forefront of their digital operations. By adopting the single platform approach to technology that other industries have already mastered, financial institutions can be leaner and more flexible, with the ability to instantly execute new digital services while also providing enhanced customer support,” said Matthijs Eijpe, Regional Vice President Sales EMEA at Backbase.

Customer experience differentiates successful digital financial services from failures with 44% of respondents citing poor customer relations as a key influencing factor in making the decision to switch to a different bank.

“Collaboration with a partner that accelerates the shift to engagement banking and manages change across the entire digital journey enables financial institutions to focus on providing a high-quality service to customers and members. Our state-of-the-art digital banking software solution unifies data and functionality from traditional core systems and new fintech players into a seamless, digital customer experience,” continued Matthijs Eijpe.

The Backbase Engagement Banking Platform features a unified architecture with ready-to-go capabilities that enables banks to intertwine with the very fabric of people’s financial lives, ensuring every step of the user journey is enhanced by experiences. It is trusted by institutions across the world including Barclays, Bank ABC, Bank of the Philippines, BNP Paribas, Capital Bank of Jordan, Citibank, Citizens Bank, Deutsche Bank, Discovery Bank, Gulf Bank, National Bank of Bahrain, National Bank of Iraq, Kuwait International Bank, RBC, Société Générale.

Previous Article

July 06, 2021

Ultumus partners with Alveo for customers to integrate Index and ETF

Read More
Next Article

July 06, 2021

Mastercard and Gift of the Givers Foundation partner to assist communities through Priceless Cause

Read More







Advertise with us



IBSi Daily News Analysis

Fraud

June 29, 2022

89

UK has become the global hub for fraud due to an explosion of cybercrime

Read More

IBSi FinTech Journal

  • Most trusted FinTech journal since 1991
  • Digital monthly issue
  • 60+ pages of research, analysis, interviews, opinions, and rankings
  • Global coverage
Subscribe Now

Other Related News

Today

Cogent Bank launches real-time, blockchain-based payments via TassatPay

Read More

Today

NETinfo to offer its Digital Banking Platform on Microsoft Azure cloud

Read More

Today

Pendo strengthens its presence in Europe to drive the product-led movement

Read More

Related Reports

Sales League Table Report 2022

£ 1,500.00 / year

Know More
Global Digital Banking Vendor and Landscape Report Q1 2022

£ 1,500.00 / year

Know More
Wealth Management & Private Banking Systems Report Q1 2022

£ 1,500.00 / year

Know More
Global Transaction Banking Vendors and Landscape Report Q1 2022

£ 1,500.00 / year

Know More
Treasury and Capital Markets Systems Report 2021

£ 1,500.00 / year

Know More

IBSi Sales League Table

The industry acknowledged barometer of global banking technology vendor performance!
Get your copy now!
close-link
Get your copy now! IBSi Sales League Table 2022