Page 28 - Banking Finance November 2021

ARTICLE

RETAIL BANKING

POST PANDEMIC:

REPOSITIONING &

RECALIBRATING

FOR THE PRESENT

& FUTURE

Introduction delivered to customers needs re-orientation. With social
distancing norms still in force, re-orienting the digital
The COVID-19 pandemic has brought economies to a
banking approach is a primary agenda for the industry.
standstill and has provided considerable challenges to
banking and financial institutions. However, the banking
The article endeavours to analyse critical value factors
industry has shown tremendous alacrity during the ongoing
relevant to the banking industry to stay relevant now and
pandemic. To give an example, bank branches were closed
rise above in the future.
when clients stayed at home, redirecting their resources and
customers to digital channels. Banks extended loan deferrals Challenges for Retail Banks
or moratoriums to help financially distressed customers
Banks now confront additional hurdles as the new reality
weather the crisis.
begins to take shape. The pandemic has accelerated
changes already underway and sparked new ones. Owing
As the knock-out effect of the pandemic spreads, the domain
to the pandemic, the banking revenue has taken a
of retail banking juggles to reposition and recalibrate the
significant beating, and the industry's revenue pool is under
business priorities and customer expectations. The banks
pressure. Relevant reports suggest under the most
realise today that the product, process and experience
optimistic scenario; those pools are not expected to return
to pre-crisis levels until 2022.
About the author
Customers are making a move to the digital channels faster
Mukti Prakash Behera than they have earlier. Online banking and mobile banking
Faculty (Marketing) use has increased to a considerable level. These changes are
State Bank Institute of expected to last, speeding up the transition to digital media
Consumer Banking by three to four years compared to pre-crisis trends.

28 | 2021 | NOVEMBER | BANKING FINANCE