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COVID-19 drives adoption of digital banking, app solutions across Europe: Mastercard

More than two in five or 42% of Europeans reported they're banking digitally more frequently now than pre-pandemic owing to the time-saving and simplicity benefits. Around half (52%) of existing digital banking users indicate that the pandemic hasn't changed how regularly they're making financial transactions this year, while only 6% of the respondents say their online and app-based banking transactions have decreased from 2019.

Devdiscourse News Desk | Brussels | Updated: 20-11-2020 12:34 IST | Created: 20-11-2020 12:34 IST
COVID-19 drives adoption of digital banking, app solutions across Europe: Mastercard
(Representative Image) Image Credit: Pixabay

The COVID-19 pandemic and the rapid digitalization of lives under lockdown has accelerated the adoption of digital banking and app solutions across Europe, says a new study by Mastercard.

Mastercard's 2020 European Evolution of Banking study examined digital banking trends across 12 key markets in the region. The study reveals a heightened appetite for online solutions, with 62% of all respondents considering switching from physical banking to digital platforms in 2020, up from 54% in 2019 and 49% in 2017.

Of the over 9,600 Europeans surveyed, 46% said they were highly interested in new digital banking solutions, while 42% indicated interest subject to the assurance of advanced financial security measures.

More than two in five or 42% of Europeans reported they're banking digitally more frequently now than pre-pandemic owing to the time-saving and simplicity benefits. Around half (52%) of existing digital banking users indicate that the pandemic hasn't changed how regularly they're making financial transactions this year, while only 6% of the respondents say their online and app-based banking transactions have decreased from 2019.

According to the study, Eastern European markets (57%) are 13 points ahead in expressing positive interest in digital banking platforms, compared to their Western European counterparts (44%).

When it comes to the qualities of online banking and mobile payment solutions, the lockdown lifestyles have also shifted the priorities of Europeans. Digital banking users are now more focused on the high availability, lifestyle attributes and cost-effectiveness of online platforms. When selecting a digital banking solution, safety and security were the top considerations for the majority (51%).

Despite soaring adoption rates, many Europeans still trust banks and financial institutions with a significant majority (85%) believing that physical banks will exist in their country in 10 years' time.

For financial institutions delivering digital solutions, Mastercard remains the partner of choice in 2020. More than 60 digital banks across the region are partnering with Mastercard Europe and with 80% of the entire fintech and paytech sector is in partnership with the company, double since 2018.

Note: Ketchum Research and Analytics carried out the research on behalf of Mastercard while Vitreous World conducted the fieldwork.


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