KUALA LUMPUR, Nov 18 — More day-to-day banking transactions will be completed via digital channels and bank branches will become more like service lounges in the post-Covid-19 world, according to HSBC Bank Malaysia Bhd.
These are among HSBC’s predictions on how banking will look like post-Covid-19, which it listed in a statement titled “Post-Covid-19: Five Key Impacts on Everyday Banking”.
The bank said Covid-19 alone has not caused the shift to digital; in most cases, it has simply accelerated the digital evolution of the banking industry.
“The transition towards digital was inevitable for routine activities — checking balances, payments and transfers, paying a bill and even credit card applications.
“There will be more people who will bank via digital channels and their behaviour is likely to stay,” said HSBC.
However, it said that even as the pandemic fades, people will still have a psychological need for human interaction at important life moments and therefore will go to branches.
“People need to feel reassured when it comes to life events like sending a child overseas for education, managing generational wealth transfers, establishing a wealth plan, bereavement or buying a home.
“This means we can expect some return to ‘normal’ post- Covid-19 and branches will continue to make up significant proportion of this type of activity,” it said.
HSBC said it remains to be seen how far people will be willing to use video platforms as part of this interaction, which may depend on factors such as how long social distancing persists.
The third impact is to change the way branches look and feel. HSBC Malaysia said branches will become “less about rows of tellers managing daily transactions, which can now be done online, and more like service lounges.”
“Agents will be on hand to guide customers through transactions on their own devices, and space will be broken up into more casual seating areas for deeper private conversations,” the bank said.
The banking industry, it said, will also see an acceleration in regulatory collaboration on digitisation.
It noted that Covid-19 enabled regulators and banks to work together to rapidly help customers keep banking during the early outbreak of the pandemic.
“We predicted that this cooperation will accelerate further as increased digitisation persists and evolves into new areas like artificial intelligence ( AI) and machine learning,” it said.
On the fifth impact, HSBC said established banks will become more like challenger banks.
“Increased digitisation for customers will also drive increasing partnerships between banks and platforms like online retailers and social platforms, so that a person can bank where he spend or socialise.
“Separately, we are seeing new digital entrants to retail banking markets around the world, but we also predict that as digital platforms become more scalable, established international banks will begin to challenge with digitally-centric offerings both inside and outside their home markets.
“The benefit of both changes for consumers will be clear that is more choice. For the established banks it’s an opportunity to compete in new markets, segments and marketplaces,” it added. — Bernama
