Necessity and urgency have forced many to overcome their reluctance or fear of digitalization.
Banks, characterized by their capacity for innovation and adaptation to consumer needs, were able to respond with full diligence to the needs of the moment thanks to having immersed themselves years ago in digital transformation with the drive that comes from a vocation of service and the instinct for survival.
Branches ceased to be the main distribution network for banking products and services long ago. Now the customer determines when and how they want to establish their relationship with the bank, which is committed to adapting both to the most digital needs and to those of more traditional consumers. In fact, distribution channels expanded beyond the physical office so long ago that it no longer surprises us. Telephone banking, ATMs, mobile offices, and commercial agents have been commonplace for many years.
Today, according to a Mastercard study, eight out of ten Spaniards report using digital banking solutions once a month, while more than 60% use them weekly and nearly 40% daily. 73% of Spaniards use mobile applications from traditional banks and 30% only use them from 100% digital banks. Customer experience is probably behind these figures. The latest Forrester study (“The Forrester Banking Wave: Global Mobile Apps Summary 2019”) places some of our institutions’ apps at the forefront worldwide in customer satisfaction.
This is not the only study reflecting the growing use of banks’ digital channels. A report by Mitek and IDC Research España highlights that nearly 60% of Spaniards between 18 and 34 years old prefer digital interaction with their financial institutions, and Capgemini reveals that during the COVID-19 crisis, payments through digital means surged. Specifically, according to the aforementioned report, 47% of Spaniards surveyed state they increased their use of digital payments during the pandemic and 48% indicate they will continue to do so in the coming months.
This—access to useful and affordable financial services that respond to consumer needs—is called financial inclusion. In countries like Spain, where it is universal, it is not only key to society’s well-being, but in difficult times like the present it is essential to drive economic recovery. According to a recent study by the Ramón Areces Foundation on accessibility to services, financial inclusion in Spain is total, a conclusion ratified by the figures handled by the World Bank and which places us at the forefront of access to financial products and services throughout Europe.
Banks have already adapted to the new digital ecosystem demanded by their customers, with the same security guarantees as always. The arrival of new digital competitors, however, poses a challenge, not because they must compete with rivals—something always positive—but because of the uneven playing field on which they must operate. While banks operate with a regulatory and supervisory burden of public service and customer protection, the other team does not carry that weight. And this is not only a competition problem, but a potential problem for financial stability and for compliance with the guarantees required by consumers, especially in the most difficult times. Banks have been essential in mitigating the damage that the pandemic has inflicted on businesses and families, and they are prepared and convinced that they will also be essential in the post-COVID recovery.
The banking of the future is visible in the present. But the guarantee of this future is efficiency, with costs adjusted to income and with service prices that ensure the necessary investments to maintain and continuously improve them so that, in this way, banks can consolidate a new economy—more inclusive, digital, and sustainable—that we cannot afford to waste. This is what society wants and what we must all aspire to, especially businesses, the undisputed economic engine of the country. This is evidenced by the fact that consumers are increasingly demanding, and in this digital age, even impatient.
All of this requires advancing in the restructuring of our productive fabric, in its modernization and transformation. This is a challenge for businesses, which must be guided by greater social responsibility toward the environment in which they operate and by the demands of society’s dizzying digital transformation, accelerated even further by the pandemic. In the worst moments of the health crisis, the prevalence of remote services has allowed working from home, continuing with education and, above all, maintaining communication. Banks have been an effective support in those difficult times and are determined to lead the change, accelerating the green economy and prepared for recovery.
José Luis Martínez Campuzano, Spokesperson for the Spanish Banking Association
