Tech in Banking Part I: Digital Adoption Driving Structural Changes at Traditional Banks
Insights from our experts
This article was adapted from a webinar hosted on April 14, 2021. Click here
to view the original event.
It’s no secret that the pandemic has changed the way customers interact with and access financial services, pushing
consumers away from physical locations and into digital channels. 97% of those who responded to our polling question agreed or strongly agreed that the increased digital adoption among consumers, since the pandemic began, is permanent. As a result of this shift, many financial institutions see embracing the technological shift as a key way to drive earnings growth amid a challenging operating environment. Despite the shift during 2020, the branch isn't completely dead to us, but the ways banks interact with their customers have changed considerably. 77% of those who responded, think branch footprints are far less important but still believe the branch does still offer some relevance. As a result, banks will still selectively add branches when they want to go to new geographies. We also polled our audience about the outlook for M&A activity during the remainder of 2021. Most think it is looking up. Over 65% of those who responded foresee activity returning to pre-pandemic levels, 22% of that group also thought it could exceed pre-pandemic levels.