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Online banking for cash: Corona crisis is changing payment behavior

D.he Corona crisis is changing the way we deal with money. According to a study by the auditing and consulting company Ernst & Young (EY), many more consumers are now paying for the goods they buy with cards. One in five wants to keep this and change their payment behavior permanently. “The corona pandemic is accelerating the transformation and digitization of the finance and banking sector,” explained EY partner Robert Melnyk. 1600 consumers in Germany were interviewed for the study.

According to this, one in four pays by card more often than before the pandemic. 16 percent forego cash and carry less with them. And the fear of the Internet is also decreasing: According to the EY survey, 14 percent do their shopping more often over the Internet. Melnyk expects an even greater shift in payment traffic to the Internet. Around half of the respondents stated that they would do more banking online in the future. This will give the fintechs, who have been stealing market share from traditional banks for some time, a boost.

“The prerequisite, however, is that the providers have security under control. Consumers want their finances – and rightly – to be safe, ”said Melnyk. However, the study also showed that the vast majority of respondents initially want to remain loyal to commercial banks. Only 7 percent are ready to switch banks in the next twelve months. “The classic ones
Banking institutes still enjoy a great confidence advantage over the challengers from the fintech segment, ”said Melnyk. In order not to lose this advantage, more investments in digitization are necessary.

An even more frequent use of Internet offerings is primarily offset by security concerns: Almost half of consumers (49 percent) cite security concerns as a reason why they do not manage their finances online more often. One in four still appreciates the personal service provided by bank employees. Just under a quarter (24 percent) are simply not interested in such offers.

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