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Pioneering Intelligent Banking eBook

Scaling Digital Transformation as Retail consumers shift to digital engagement SMBs demand experience-driven

across all channels
digital interaction
Customers Evolve and FinTechs Before COVID-19 During COVID-19 During COVID-19

(February 2020)
(August 2020)
Gain Ground 49% used internet 57% prefer internet SMBs prefer using cashflow
management tools if offered by
banking
banking
their primary financial institution
The COVID-19 pandemic has sparked a major shift towards digital engagement for retail and 47% used mobile 55% prefer mobile SMBs want digital invoices
integrated with their accounting
small and medium-sized business (SMB) customers. Capgemini’s COVID-19 and financial apps for banking apps for banking software
services consumer research revealed that internet banking and bank mobile apps were
expected to jump from 49% to 57% and 47% to 55%, respectively, between February and 15% interacted with 21% prefer automated SMBs are considering a bank
voice help when
banks via
August 2020. The same digital trend is being followed by SMBs, with 43% now demanding chatbots interacting with banks change in the next 12 months
digital invoice integration and 70% preferring digital cashflow management tools.
Source: Capgemini COVID-19 consumer survey, April 2020, n=11,281

Consumers and SMBs are demanding a switch from face to inter-face.” FinTech business model enables a superior FinTechs are gaining ground
experience

of users were satisfied with FinTech offerings
At the same time, FinTechs and other new-age players have been capitalizing on their strengths
providing superior personalized experience and expanding their offerings, thus increasing their
customer base. To name just a few, NU Bank in Brazil is the first fully digital bank to support of customers discovered a new financial
WhatsApp payment platforms and allow SMBs to test its new small business bank account provider and plan to continue with them
post the crisis
solution for free. Brex in the US has partnered with SAP for expense tracking integration, and
N26 has been actively working with TransferWise to support funds transfer across 30+ Source: Capgemini COVID-19 consumer survey, April 2020,
countries as of June 2020. n=11,281

In this context, banks are shifting away from conventional touchpoints and enhancing digital
capabilities. According to Capgemini’s research conducted in July 2020, 63% of traditional
banks plan to close nearly one third of their branches permanently, while 74% are planning to
earmark 10% of their IT budget towards automated chatbots and AI automation.
Source: Capgemini Financial Services analysis, 2020
As the pandemic prompts digital interactions, banks need to accelerate their digital
transformation to remain close to their clients while improving operational efficiencies.
They can achieve this by striking a balance between building in-house, buying/acquiring, Banks shift away from conventional touchpoints and enhance digital capabilities
or collaborating, thus unveiling new experiences along the entire customer value chain.
banks plan to close nearly 1/3 of their branches permanently by June 2021

FinTechs are at the forefront of the change, from disruption to executives say they will earmark 10% of IT budget to automated chatbots and AI driven voice assistants
maturity.” (Messenger, WhatsApp etc.)

Source: Capgemini Financial Services Analysis 2020, n=19

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