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UK CONSUMERS CALL ON BANKS TO INVEST IN MORE TECHNOLOGY POST-PANDEMIC

  • Since lockdown, 47 per cent of consumers now expect to be able do all their banking through an app.
  • There is set to be a permanent rise of 23% in online banking when lockdown ends.
  • Lockdown is pushing more UK consumers to consider tech-driven ways to bank: 1 in 5 said lockdown had made them more likely to embrace chatbots and 1 in 4 stated they want virtual meetings with their bank manager
  • 1 in 4 millennials started using a neobank during lockdown, while 2 in 5 millennials plan to use challenger banks following the lockdown being lifted

New research into the changing habits of 2,000 UK consumers by NTT DATA UK, a world leader in consulting and IT services, revealed the COVID-19 lockdown has shifted consumer banking habits, encouraging a surge in demand for online and app-based banking in the post-COVID-19 world.

The closure of physical bank branches pushed UK consumers towards digital channels. Since lockdown nearly half (47%) now expect to be able to do all their banking via an app. Results varied by age, with 35-44 the most likely and respondents aged 55 and over the least likely to demand app-only banking in the future. Recent Which? research highlighted that out of those concerned with banking digitally, 35 per cent were most likely to be in the 65 and over, and vulnerable adult category.

Visiting the branch, particularly given social distancing rules, is playing a declining role in how customers bank. Amongst consumers surveyed by NTT DATA, fifty-six per cent used online banking before lockdown, rising to almost eighty per cent (79%) who said they used online banking during lockdown. This figures drops back to sixty-nine per cent who said that they will continue to bank online post-lockdown, which represents a seismic twenty-three per cent rise in online banking usage by the time lockdown ends.

 

Future of banking

Looking ahead, customers seem willing to embrace new technologies in different areas of banking too. 1 in 5 people are now more likely to try chatbots to serve their banking needs, while 1 in 4 UK consumers are open to virtual meetings with their bank manager, instead of visiting their local branch.

Josep Alvarez, Head of UK Banking Practice, everis UK – an NTT DATA company – said:

“Banks need to be brave in making the case to customers about the benefits of new technology. Consumers are demanding a more agile, convenient form of banking. From chatbots supporting customer service functions, through to open banking initiatives connecting with new functionalities provided by third party Fintechs, this sector looks to be heading towards an innovative and tech-driven future.”

 

Continuous improvement 

The lockdown has been a difficult period for many banks. However, only 1 in 5 respondents said they had felt frustrated and unable to do what they wanted when banking online during the lockdown. The tumultuous economic climate has put more onus on banks to continue to deliver for their customers – even with high demand on phone lines and online channels. According to NTT DATA, customer satisfaction has remained high: less than a quarter (22%) of respondents said they had experienced frustration when it took longer to carry out banking services.

This tolerance may not continue as the world returns to normality. Customers are demanding continued improvements in the online services offered by banks. Forty per cent of UK consumers now want their bank to invest in a better online experience, with the strongest support in ages 25-34 and 35-44 respectively. Digital transformation, therefore, is not an excuse for a dip in quality.

Alvarez commented: “During the coronavirus pandemic, banks have shown remarkable flexibility in pivoting their services to meet extraordinary customer demand. Social distancing has kept branches shut and put the onus on digital ways of delivering their services. These survey results seem to endorse that approach. Now is the time for banks to innovate and invest in new ways to connect with customers and improve their experience, creating a more resilient business model to cope with future disruption – from coronavirus and beyond.”

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TECHCOMBANK AND COMPASS PLUS CELEBRATE 15 YEAR MILESTONE IN BANKING PARTNERSHIP

Since issuing the first Visa card 15 years ago using solutions provided by trusted partner Compass Plus, Techcombank, one of the top commercial joint stock banks in Vietnam, has become the country’s market leader for Visa payments volume and has received numerous prestigious awards from the international payment network.

 

Techcombank was Compass Plus’ first customer in Vietnam, and following the initial project in 2005 to issue Visa cards in the country, the partnership has continued to go from strength to strength. The bank has used Compass Plus solutions to expand its card business and banking portfolio, and has also built an in-house processing centre using its partners software.

 

Originally brought in to help grow its business and develop its offering for individuals and small to medium businesses, Techcombank selected Compass Plus as the partner that had the expertise to support both its technical and business requirements.

 

“We are proud to mark this milestone in our partnership with Compass Plus,” said PhD Hoan Dang Cong, EVP, Deputy Head of Retail Banking at Techcombank. “Over the last 15 years, we have appreciated the efforts from the strong and well-established relationship we have with our trusted partner, as well as stable card business performance and flexibility to enable business growth.”

 

“Techcombank is one of the most technologically advanced banks in the country, and we are proud to be able to say that not only are they our customer, but that we have such a positive and long-standing relationship with them,” said Igor Simonov, AVP, Business Development and Sales Manager at Compass Plus. “As the Vietnamese banking sector responds to demands for more advanced payment methods than ever in a move away from cash, we will be ready to deliver and to provide the ongoing support needed to spur further growth for banks, such as Techcombank.”

 

 

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XALQ BANK SUCCESSFULLY COMPLETES IMPLEMENTATION OF TRANZAXIS

SMALLER BANKS

As part of a strategic project to modernise its infrastructure, Xalq Bank, one of the leading banks in Azerbaijan, has launched the open development payments platform TranzAxis from Compass Plus. The flexibility of this software solution will allow the bank to expand the range of services and products provided to customers and quickly respond to market changes.

The joint project with Compass Plus, which sees the automation of back-office operations for managing cards and customer accounts, also gives Xalq Bank access to technologies and tools that will enable it to transform its card business, and promptly develop new products and services that meet customers’ needs and the realities of the financial market of Azerbaijan.

In addition, during this project, the bank automated the processing of payment card transactions, including maintaining customer data, managing charges and limits and other card data; business logic and accounting for various types of cards, including the full cycle of servicing credit cards, and also provided automated interaction with third-party systems of both the bank and its partners. In addition, the new system has revised and optimised tools for accounting and analysis of the bank’s terminal network (ATMs and POS terminals).

“Thanks to the professional support of the Compass Plus team we completed this project in the quickest time possible, despite the COVID-19 pandemic. We are sure this is just the beginning of a long-term partnership, and the capabilities of the TranzAxis software platform will provide us with a good basis for business development for many coming years,” said Nazim Ibrahimov, project manager and a member of the Executive Board of Xalq Bank.

Head of IT department of the Bank, Ali Akhundov, commented on the joint work: “This project has become part of a large-scale process of modernising the bank’s IT infrastructure, which includes updating many systems and services. Due to its flexibility, functionality and architecture, TranzAxis plays a key role in automating our retail business.”

Alexey Osipov, Executive Vice President at Compass Plus, said: “The Azerbaijan market is extremely important for us, with 7 out of 30 banks and 2 processors operating in the country already Compass Plus customers! This project has, once again, confirmed the leading position of Compass Plus in Azerbaijan, and we are delighted to partner with Xalq Bank, one of the largest players in the financial services market.”

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