Digital banking channels are enjoying supercharged momentum as a result of the coronavirus pandemic. US consumers’ banking behavior will continue to evolve through 2024, spurring banks to satisfy customer demands in both legacy and digital channels.
U.S. Bank tests hybrid branches to complement digital channels: With digital banking becoming dominant, the bank’s new branches eschew routine banking services and instead dedicate employees to assisting with complex products.
Digital trust—the confidence that bank customers have in their providers’ digital channels—is a precious commodity for banks. As competitive and cybersecurity threats abound, trust will be their advantage to lose.
The pandemic is pushing consumers into digital banking channels, upping pressure on small and midsized banks to deliver value-added services and digital user experiences. They have to find ways of doing so on limited tech budgets to stay competitive.
BofA digital engagement surges: The US-based bank disclosed that users are turning to digital channels more frequently, even as adoption slows. With adoption now approaching saturation, engagement will become the next frontier for banks.
An aggressive branch-opening strategy runs contrary to recent waves of branch closures by other major US banks as well as shifting bankingchannel trends. The number of branches in the US slipped by 5.1% between 2017 and 2020—a loss of more than 4,400 branches, per data from National Community Investment Coalition cited by Forbes.