COVID-19 pandemic accelerates transition to new digital banking platforms
By Andrea Deckert
BridgeTower Media Newswires
NEW?YORK — Interest in in-person banking had already been declining in recent years and those in the industry expect the restrictions imposed by COVID-19 to shift more people to online banking services even after things go back to normal.
They stress, however, the need to continue to have branches to provide in-person interactions and say plans are underway to strike a balance between the two ways people can bank.
Martin Birmingham, president and CEO of Five Star Bank, says digital access — in areas that range from banking to shopping — has increased during the COVID-19 outbreak.
“Digital access and accessibility have been of great importance for our customers and associates during this time,” Birmingham says.
Five Star operates more than 50 branches, and most are now open for drive-up service or by appointment, but there has been a marked increase in the number of customers using online banking options.
The increase in use of online banking services has been seen during the COVID-19 outbreak, but it had also been steadily increasing before it, Birmingham notes.
The bank had already been responding to that increased usage and had been working on a strategy to transition to a new digital banking platform. The COVID-19 pandemic expedited that transition, he says.
Five Star first conducted a survey to gauge customer support for rolling out the new platform at this time, which includes a new digital application, a new look for desktop users and additional online services for personal and business banking.
The customer response has been positive, and Birmingham is pleased with the progress.
Under the new digital platform, Five Star customers are able to access their account information, conduct transactions and be provided more on-the-go access to Five Star Bank digital banking from their computer, tablet or mobile device.
Those new online offerings include a dashboard that allows customers to establish a direct connection to their monthly bills and make payments in one place, as well as CardSwap, a tool to update the payment method on many subscription services.
There are also online financial tools to help with budgeting. Upcoming options will also be available including SendMoney, which allows customers to send money to others.
The digital platform also offers interactive tutorials and an online user guide to help customers with the transition.
Five Star is also looking at ways it does business post COVID-19 with an emphasis on social distancing and safety measures for both customers and employees, he says.
“It is more critical than ever for a local community bank to fulfill its role and take care of its customers, the community and our associates,” Birmingham says.
He notes that Five Star will continue to transition to the new normal. And while there will continue to be an emphasis on, and increased popularity of, online banking, there will still be a need for personal interaction at bank branches.
“We will work on ways to embrace that balance between the personal interaction at branches and the increased digital capabilities we offer,” he says.
Mary Kate Loftus, director of digital banking for M&T Bank Corp., also notes online banking is up during the COVID-19 outbreak.
M&T breaks digital banking down into three categories.
The first is enrollment, which includes those who sign up for digital banking services. The second is digital activity, which is when customers log into their accounts for things such as checking their balances or transferring money. The third is digital engagement, which is when people use digital banking as their primary source of banking.
Enrollment is up some 40 percent from the 60 days prior to the pandemic, Loftus says, and she adds that number continues to increase.
Digital engagement is also up, as is digital activity, she says, noting the bank’s Money Smart tool — which allows users to plan their budgets and track spending — has seen a 33 percent increase in usage.
M&T employees are also helping with online learning for customers, Loftus says.
Employees at the bank branches will distribute information on online options to customers who use the drive-through services and are also available to speak over the phone with customers who need further assistance. M&T also has a customer call center.
There are also online demos that allow users to complete a trial run of an online service before they complete an actual transaction.
The bank has also added some online and mobile features recently that can help with things such as recurring transactions and providing information on topics that directly relate to a customer’s needs, whether it be saving for retirement or paying down debt.
“Our goal is to make it easier for customers to manage their money and access products when and where they need them,” Loftus says.
Caytie Bowser, vice president/director, product development and management at ESL Federal Credit Union, says the credit union has seen its biggest increase in online and mobile usage among its customers during the pandemic.
She notes daily average logins increased 26 percent in April compared to March for personal online and mobile banking.
Also, when the first round of government stimulus check deposits went out in mid-April, ESL’s daily website traffic increased between 114 percent and 140 percent over the daily averages from January through early March of this year.
ESL recently added to its online and mobile offerings, as well. In April, the credit union launched online and mobile capabilities for opening personal checking and savings accounts.
The efforts are having a big impact, Bowser says, noting that over 500 accounts have been opened digitally in the past month since the service was launched.
ESL will continue to offer new digital offerings to customers, and Bowser says there are online demos and employees at the call center who can help customers with any questions they may have on using such tools.
“We will continue to provide services that enhance what customers can do online and make it easier for them,” Bowser says.
The credit union has also begun to look at what steps it will take when stay-at-home restrictions begin to lift, and Bowser believes the process of returning to a new normal will be gradual.
Moving forward, Bowser agrees there has to be a balance between in-person transactions and the growing use of digital applications.
“We will do the best we can to make sure the two complement each other,” she says.
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Andrea Deckert is a Rochester-area freelance writer.
