Borrow
Digital banking boom catalysed by COVID-19
A recent report from FIS has shown that Australians are rapidly moving towards digital transactions, with almost 30 per cent said to have engaged in a new banking relationship with a financial institution or non-bank service provider during the COVID-19 pandemic.

Digital banking boom catalysed by COVID-19
A recent report from FIS has shown that Australians are rapidly moving towards digital transactions, with almost 30 per cent said to have engaged in a new banking relationship with a financial institution or non-bank service provider during the COVID-19 pandemic.

The move towards new relationships has come alongside an acceleration towards digital transactions — the pandemic has encouraged 36 per cent of respondents to increase their use of QR codes when shopping in-store and 24 per cent to increase their use of contactless payments.
The trend to abandon “old ways” of banking has been characterised by the younger generations, with 52 per cent of Gen Zs and 63 per cent of young Millennials noting in a recent FIS survey that they have started a new banking relationship in the past 12 months.
The same was only true for 11 per cent of Baby Boomers.
Furthermore, 89 per cent of young Millennials interviewed own a mobile wallet, versus 35 per cent of Baby Boomers.
Ninety-nine per cent of the young Millennials who were said to have owned one have used it in the past 30 days.
Across the board, a key motivator was the desire for better benefits, with 31 per cent of respondents citing this as their key reason for entering new banking relationships.
However, the increased willingness to move towards digital banking relationships seen among younger generations was shown to also come from a position of need. Sixteen per cent of young Millennials said they are most in need of access to real-time payments immediately, with 26 per cent admitting this was at least needed within six months.
FIS said that the results of the study demonstrated how banking and non-banking institutions will need to prioritise optimal digital experiences to capitalise on an evolving market.
“Australian consumers have responded to the pandemic by seeking better banking experiences and are now prioritising digital,” said Adrian Toynton, banking solutions head at FIS.
“As competition in the banking sector intensifies — with new tech-savvy entrants winning market share and consumers quick to enter into new banking relationships — it is absolutely critical for banks to offer a compelling customer experience from the get-go.”
As the pandemic continues, it has become increasingly apparent that the trend towards digital banking and payments is here to stay — only 7 per cent of respondents indicated they were gradually returning to the “old ways” of banking.
Breaking this up demographically, FIS highlighted the importance of focusing on how younger consumers will continue to bank following the pandemic — 13 per cent of Baby Boomers said they were likely to return to conducting transactions in branches, whereas only 2 per cent of Gen Z and 4 per cent of young Millennials indicated the same.
“To retain and win new customers, banks must modernise their platforms and harness advanced technologies, including cloud and API-enabled banking, to provide a seamless, always-on experience,” said Mr Toynton.
“Banks should also keep finger on the pulse of the habits and preferences of Gen Zs and young Millennials, who are undoubtedly a crucial demographic that will determine what next-gen banking looks like moving forward.”
The changing nature of the Australian banking payments landscape has recently prompted the federal government to conduct a new review of the system at large.

Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure...Read more

Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. ...Read more

Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. ...Read more

Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. ...Read more

Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. ...Read more

Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. ...Read more

Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more

Banking
Big bank-backed start-up raises $12.75m
A landmark fundraise by Australia’s biggest banks has secured a war chest of $12.75 million to the sector’s blockchain consortium, Lygon, to bolster its research and development into helping banks...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure...Read more

Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. ...Read more

Banking
Modernisation of direct debit system suffers setback
According to the Reserve Bank (RBA), several major banks will not be able to meet the current timeline for the launch of the PayTo service. ...Read more

Banking
Australians' trust in digital providers has decreased in last five years
Australians have little trust in organisations keeping their information secure, but the financial services industry still sits atop the list. ...Read more

Banking
Commonwealth Bank chairman to retire in August
The Commonwealth Bank (CBA) board has announced a successor. ...Read more

Banking
Westpac responds to $113m penalty
The big four bank has responded to the penalty handed down last week. ...Read more

Banking
Westpac ordered to pay $113m for ‘widespread compliance failures’
Westpac has been ordered to pay penalties in the amount of $113 million for widespread compliance failures across multiple businesses, including Westpac’s banking, superannuation, wealth management ...Read more

Banking
Big bank-backed start-up raises $12.75m
A landmark fundraise by Australia’s biggest banks has secured a war chest of $12.75 million to the sector’s blockchain consortium, Lygon, to bolster its research and development into helping banks...Read more