COVID-19 ’ S IMPACT ON THE DIGITAL BANKING SURGE
Digital banking was always on the up , but throw in a global pandemic – where consumers are constrained to the four walls of their homes – and you ’ ll see the adoption process take an upward surge .
A 2021 Red Book Statistics report from the BIS Committee on Payments and Market Infrastructures ( CPMI ) highlighted an unprecedented rise in non-paperbased or digital credit transfers in 2020 throughout advanced economies , emerging markets and developing economies . Per the report : “ Growth in total credit transfer usage was so strong that the share of non-cash payments in total GDP sharply increased across the globe .”
This was coupled with a strong decline in cash usage , and with that , a decline in ATM withdrawal rates . CPMI ’ s report notes that in 2020 , consumers only made between 10 and 25 cash withdrawals for the entire year . What ’ s more , the total number of cash withdrawals for 2020 declined by 23 %, exceeding the 10 % decline in withdrawal value , pointing to a trend of larger cash withdrawal amounts made by consumers worldwide .
Fast-tracking a trajectory towards greater uptake of digital banking en masse , the effects of COVID-19 cannot be understated as legacy banks continue to digitise their financial services and cut back on the inhabitancy rates of ATMs and bank branches in developed markets .
certainly reduced since technology in the banking industry has surged over recent years ”, he feels “ cash is still important ” and doesn ’ t “ see that changing anytime soon ”. This is especially true in developing markets and low-income regions , where ATMs continue to play an important role in reaching the underbanked , providing an accessible link from cash to checking accounts . BPC Banking Technologies ’ Director of Business Development , Michalis Michaelides , notes that “ cash remains an important tool for consumers ” in these underserved areas .
80 July 2023