Technology and circumstances have historically proven to be drivers for behavioral changes across industries, and financial services are no exception.
I can remember when citizens physically went to places of business to make payments — power, water, gas, you name it. They then transitioned to mail-in check payments for convenience, as most of us did.
With the integration of digital payments becoming mainstream in the 2000s, early adopters opted for online payments and emailed bank statements, though there were many consumers who refused rapid changes in technology, preferring to make payments as they always had. Gradually, however, digital payment services became commonplace, though the historical option of in-person, face-to-face transactions were always in place — and welcome.
Enter 2020 and the pandemic that changed the way all of us work, live and play. For us at America's First Federal Credit Union, we’ve seen COVID-19 affect our employees and our members — from the physical closure of our branches in the spring, to our socially distanced reopening months later, to our current sanitizing of affected locations when a positive staff case is identified.
Due to the inability to conduct in-person transactions and also to individuals’ awareness of their own health and safety, data has shown that member adoption of our established digital services has excelled when looking at pre- versus post-COVID-19 restrictions. For example:
- Online banking transactions (account-to-account transfers, payments, etc.) saw a 20% increase on average from March to August, compared to the average from November 2019 to February 2020
- ATM deposits had a 15% increase on average from March to August, compared to the average from November 2019 to February 2020
- Remote deposite capture usage increased 15% on average from March to August, compared to the average from November 2019 to February 2020
As with other financial institutions, AmFirst members are clearly using our digital payment services more than ever. And though the increase has been brought on by the COVID-19 pandemic, new users are seeing digital payment benefits that will likely keep this trend alive well into the future, as digital payments are typically faster and safer than other payment types and are flexible in nature.
Members can add any of their AmFirst cards — and most other financial institutions’ cards — into mobile wallets. Additionally, digital payments can typically be made by debit card, credit card or Automatic Clearing House (ACH) using member checking accounts and routing numbers. Online banking also allows members the ease of moving money between both internal and external accounts through functions such as funds transfers or payments.
Interestingly enough, we are also seeing an increase each month in the adoption of peer-to-peer (P2P) payments through merchants like PayPal, Venmo, Cash App and Zelle.This further shows that not only is the digital payment trend happening in our own network, but in others connected to ours as well.
As the hope continues to grow regarding the effectiveness of COVID vaccines in the near future, so will the potential for our members to return to normal. However, the normal that ensues may be the one set by our current circumstances.
For late adopters who have now switched to the ease of technology, face-to-face member interaction may forever be changed.
That is, until the next technology advancement — or worldwide crisis — surfaces.
