The Digital Banking Solution for COVID-19 Epidemic
Table of Contents
The Digital Banking Solution: How covid-19 began?
In this article, we will evaluate covid effect on economics & banks and find The Digital Banking Solution for covid-19 epdemic. In January, 2020, scientists enrolled a cluster of family which includes 5 people with fever and respiratory symptoms in Wuhan, China.
First patient was 20-year-old woman. This patient traveled from Wuhan to Anyang to see another hospitalized relative in 10th January. She’s met second and third patient at the same day. There wasn’t any report of corona virus at this hospital. At 11th February, she had no relevant symptoms such as cough, respiratory symptoms or elevated temperature which are most significant signs of COVID- 19. But the other patients who had no other contact with Wuhan city but the 20-year-old woman continued hosting and spreading the virus. They were the first patients of corona virus but not the last.
Nowadays, in middle of March 2020, more than 200.000 people are infected and corona virus caused over 8000 people’s life. Also, it still continues to spread with an increasing accelerate. It reminds end of world style of Netflix films and became a real threat for human kind.
What kind of precautions has taken worldwide for the digital banking solution?
After January, corona virus became a real threat for human kind, social media and news started focusing on this topic more. It first started spreading in china and after spread all over the world by trading goods and staff, travelling people, etc. Italy and Iran followed china by the statistics of WHO (World Health Organization).
Many countries cancelled and sustained all their flights to these countries and many others by time. Also, many countries sustained education in all levels (from kindergarten to universities). Some countries declared curfew and some of them are still considering of it. So, it may get popular in worldwide to declare curfew.
How to prevent corona virus?
There is no specific method or cure for the virus yet. Everyone should take care of their personal cleaning such as washing hands frequently, cleaning the area frequently (doorbells, door handle, sink, etc.) They advise to wash hands for at least 20 seconds with soup and try not to go out if not necessary. Because even if it does not kill young aged people, it spreads by them.
So, to break the chain of spreading epidemic, everyone should spend time as much as possible at home. Try not to invite and accept any guests for a while and especially try not to touch your nose, mouth and eyes with your dirty hands. This is the key spreading method of the virus. Virus does not live on a surface for a long while and it is not alive. And definitely it is not smarter than human kind.
The history shows that human kind handled many of other epidemics until now with even worst technology and I sure am we will take care of this one too. It is possible to even stop spreading it right now with the cooperation of every single person in this world. Also, this corona virus has a strong impact on financial industry globally. Before we explain The Digital Banking Solution for epidemic, let’s take a look at downgrade in economics during covid-19.
Downgrade in Economics
The corona virus outbreak has led big facilities and especially banks to cut their forecast for global economy. According to March report, it downgraded its whole process about almost all economies.
According to the previous chart, including US, China, Japan and whole world’s data the forecast of 2020 is decreasing significantly. Data of World is almost 3 in the first column, and the new forecast used to increase just a little bit to the 3. But todays analysis shows that it will decrease almost under 2.5 in worldwide (Values refer GDP growth, %). Also, we can imply that the reduction of manufacturing in China will change the analysis of other countries.
Not only China has this virus now, that’s a global problem and it will harm all countries but China started facing with this epidemic disease before everyone else and it will be harmed a lot more comparing to the other countries.
One of greatest manufacturer and distributor of the world, China, has been hit hardly by the corona virus outbreak. China’s manufacturing activity limited in February, showed a record low reading of 40.3. We should also evaluate manufacturing activity in major economics before The Digital Banking Solution.
Manufacturing activity in major economics
All the sustains, precautions caused too much damage to the economy of China. It was also too popular to buy online stuff from China by Alibaba, AliExpress, etc. because it was really cheap compare to the other sources. People stopped buying goods online from China and it also affected China in a bad way.
Also, manufacturing activity slowed down. It reduced consumer spending hurt retail stores, restaurants and and others. Oil prices declined, globally reduction of oil use decreased the demand for oil to the lowest price to multi-year lows. According to low of demand in economics, if the demand for a good is decreasing; than the price for that good must also decrease. With that way, it caused to a significant decrease in oil prices all over the world. There are such more topics that virus affected and such more countries.
Current status of virus spread
Nowadays, there are at least 110 countries including Saudi Arabia and territories globally that has affected from corona virus according to the World Health Organization. Just like the other countries, Saudi Arabia has affected badly from this epidemic. The government said that they would suspend visas for Muslim people seeking to visit Mecca and Medina. Millions of Muslim visits Mecca and Medina each year in especially Ramadan (April). Also, Prophet Muhammad’s mosque, which is in the city of Medina, will not be able to reach during the epidemic. This means Millions of people won’t be able to visit these holly places in 2020 and it will affect the economy of Saudi Arabia very badly.
The government also suspended visas for the people who lives in a country that has confirmed corona virus cases. It is still not clear when to lift those restrictions and how major Hajj pilgrimage will be affected in this year. There are also many countries who has confirmed corona virus cases such as Kuwait, Iran, Iraq, Lebanon, Bahrain, Qatar, etc.
Also, as a financial news in Saudi Arabia, the government has agreed on cutting 50 billion riyals ($13.3 billion), which is less than %5 of the budget of 2020, to the areas that have the least economic and social impact, reported by state news agency (SPA) on Wednesday by Finance Minister, Mohammed Al Jadaan.
Corona virus effect on SAUDI ARABIA
Today, more than 200.000 people have been confirmed to have the new corona virus worldwide and more than 230 people have affected from the virus in Saudi Arabia. After it became a real threat to all countries, Saudi Arabia and middle east takes more precautions as world tackles. Jeddah said People in Saudi Arabia have inexcusably emptied pharmacies for face masks.
Experts are saying that wearing face masks or medical gloves hasn’t been proven to stop the spread of the virus. And also, Al-Amri said that they could be event dangerous if a person does not know how to wear and use it properly. Just like face masks, medical gloves haven’t got any scientific evidence that wearing them outside can prevent viruses and microbes to prevent. So, there is no need to use medical gloves and masks since it is not told by the experts.
Saudi Arabia have some precautions like all the other countries. To prevent the spread of the virus, bazaars and Shopping malls has closed. According to Saudi Arabia based TV, El-Ihbariyye, government of east region closed local bazaars and amusement centers and also, government of Riyadh and Jeddah closed everywhere but markets and pharmacies.
Besides the capital Riyadh…
Besides the capital Riyadh, everywhere such as restaurants, cafes (anywhere you can eat and drink) and also local parks have closed. According to the data of WHO, all patients who has infected from corona virus came from different countries such as UK, Spain, Switzerland, Turkey, France, Indonesia, Iraq, etc. They were immediately isolated from the airport and taken into quarantine according to the published statement from Saudi Press Agency.
Also, there were some other problems such as the demand of Toilet paper caused stampede. Since the corona virus became a real threat, many people rushed to the markets to stock pasta, flour, toilet paper, etc. 73 people died cause of fake alcohol‑based drinks after the information of alcohol kills microbes and viruses.
Role of SAMBA and CMA in supporting banks and the public
Samba is the third-largest bank by assets with more than $61 bn assets and CMA (Capital Markets Authority of Saudi Arabia) is a government organization applying full financial, legal and administrative independence, and has direct links with the Prime Minister. In last few days, Saudi- Capital Market Authority suspended holding assemblies of companies listed in financial market temporarily.
Until another notice, and holding them through modern technology ensures shareholders to engage in their weighing and vote on their decisions. The traders in the financial market and in support took advantage of the situation. In continuation of whole efforts being made by governments in the Kingdom to take necessary preventive measures to prevent its spread.
Effects of Epidemic on Banks
New COVID- 19 effected all industries including banks. Many banks increased their daily withdrawal limit during the epidemic. Also, many banks recommend their customers to use digital banking including ATMs, mobile banking, internet banking; all digital platforms without personally going to the branch.
Some banks also increased ATM limits to let their customer be able to withdrawal more in one time and not repeat that going for withdrawal action again and again. All banks try to convince people to stay at home as much as possible and they are trying to ensure all needs of customers are satisfied during the epidemic.
Decision of increasing daily limits caused banks to lose more money than the forecast. In another hand, some branches are closed, some workers could not work cause of the virus. It effected banks as much as all the other work place.
The Digital Banking Solution!
The term digital banking first seen in 1993 and it had been useful since then. The term digital banking means that digitization of all bank actions. This banking method prevent people to go to the branch of bank personally. It includes activities like withdrawals, money transfers, money deposits, checking/saving account management, loan management, bill pay, Account services, etc.
Consumer preferences depends of too many parameters and it can change really fast. By the needs of consumers, firms should change itself. Nowadays most effective parameter is corona virus. There is no cure for the virus yet. All people can do is try not to get in physical touch with others, keep distance with sick people and wash your hands frequently.
Also, doctors and governments recommend, at some places they force people, to stay at home and do not leave if it’s not necessary. At this point, digital banking works really great. People can pay bills without leaving home, make their transactions online and run their business at home. Many banks in all around the world had some precautions to convince people to use Digital Banking.
The Digital Banking Solution: Advantages OF Digital Banking
Digital Banking helps people to run their business at home, such as home offices, at it is really time saving. It ensures you to be able to make banking actions 7/24 without any interruption. Also, commission fees are lower in Digital Banking because process goes online. So, that reduces some cost such as paper cost.
In such crises like corona virus, Digital banking works out great! It ensures continuous service for consumers and this is the most important key of Digital Banking. By the development of technology, we are able to do many actions with only a few touches. Sure thing, it really makes our life easier.
The Digital Banking Solution: Precautions of Turkish Banks
With the small teams created by workers, Akbank ensured the continuity of their work like always. They ensured the continuity of all possible service ways such as digital, branches, etc.
For the continuity of operation process, they decided teams to work separately in small groups and claimed that they will add treasure backup systems to these actions. Akbank also said that they test digital banking systems and continuous accessibility systems frequently.
Garanti BBVA clusters its method under the titles. Ones is protecting customers and the other is protecting workers. For customers, they recommend to use Garanti BBVA Mobile and Internet banking.
They raised daily withdrawal limit to 5.000 TL per day (which was 2.500 TL) and also allowed their customers to withdrawal from other bank’s ATMs for free. To keep their customers away from branches, they started to control the number of customers inside of the bank per unit time by creating a queue outside of the bank building.
Kuveyt TURK Katilim Bankası:
Transfer and EFT fees will be 0 which made from mobile banking and internet banking. Daily withdrawal limit from ATMs increased to 5.000 TL. Also, from PTT and all other ATMs, it’s free to withdrawal money till 2.000 TL.
They recommend to use QR code to make withdrawal actions from ATMs.
They texted to their customers that they should use CEPTETEB Mobile, Internet Banking and ATMs.
Also added that they will disinfect ATMs frequently. Lastly, ATM withdrawal limit has increased to 3.000 TL.
The Digital Banking Solution for coronavirus: Digital Banking Products
Digital Banking involves high speed of process automation such as ATMs mobile and internet-based accessibility. There are a few ways to improve it.
Firstly, they can move from functional quantity to design quantity. In the era of Industry 4.0, work design is really important fact for a facility.
Secondly, they can create a multi-channel-based experience without any interruption.
Thirdly, they can provide end to end digital service. Which means that from the beginning of the bank till the end of the bank, everything must be digital. People used to keep data in papers in 1900s. Now, almost everything is digital.
Fourthly, develop mobile selling. It will increase usage of mobile services as well.
Fifthly, use statistics to fix unseen problems. In very big facilities, even very small details make lots of change when you look at the big picture.
Sixthly, they should move their customer support to the next level. In corporate facilities, they face with really big amount of customer and we always have to wait for queue to speak with a customer service assistant. With the nowadays technology, computers do many jobs for us by talking with them. Apple’s Siri is the major example for that. By just clicking to the numbers, they let customers do actions.
Seventhly, Combine Artificial Intelligent with IoT. New outbreak of digital services and advanced analytics will change customers’ banking method for forever. The new cooperation of AI and IoT can decrease not only online banking. It also decreases smartphone banking. The purpose is making customers life easier.
We’ve already seen that we can do banking to Capital One and Moven with an Alexa device from Amazon. Additionally, we began to see the power to do basic banking out loud while driving. As technology continues to advance, will there be a time when we can talk through all our banking transactions or simple VR participation? After more devices and objects are connected to the internet at home, the possibility of a better customer experience is not limited.
Lastly, they should include future-proof organization. The need for regulation around the client cannot be overstated. These were topics of industry for over years. All internal powers should focus on providing the best result for the consumer. This is a huge change for the industry that has been focusing almost exclusively on cost reductions since two thousand and eight. If it’d be well, than the result of providing the best possible digital experience for the consumer would not be not only a decrease in costs, but also an increase in revenues. This is the “experience gap” fintech companies have filled in the past few years. In a mostly limited range of services, beginners use data, analysis, digital technology and agility to deliver what the consumer wants.
Benefits of Digital Banking
Today, traditional banking services based on lending and deposit transactions are only part of banking activities. Banking because of the emergence of a information-based economics and the information and communication technology of the society services have undergone major changes in last years. Develop Banks have invested heavily in reducing customer service delivery quality and transaction costs. and ICT networks to offer a wide variety of banking products. and services.
All banks have followed innovative banking technologies and e-banking services in recent years. In this regard, in the article, Electronic banking service that emphasizes various aspects of e banking. Although e-banking is an offer Many advantages for corporate and retail customers, not for electronic banking Some difficulties and problems in terms of security and customers’ interests.
There are several alternative channels for daily banking that customers can choose based on their needs and experience. While daily internet, mobile and ATMs are preferred, weekly customers use ATMs and online channels more often than others, but branch banking is the most common option for monthly use.
Customer satisfaction and customer service delivery are important factors for banks to gain, retain and increase bank profitability. New technologies have enabled banks to serve and assist customers not only at branches, but anywhere in the world and through any distribution channel the customer chooses. With the convenience of digital channels, customers visit branches less and use online and mobile technology more frequently for their banking needs. Online and mobile banking is growing rapidly, branch importance is rapidly decreasing.
However, when it comes to banking consulting, branch banking is still preferred by customers. Although Internet and mobile do not completely replace other channels, it has recently become the dominant tool for consumers to interact with their banks.
There is no doubt that in the near future, electronic banking will definitely overcome traditional banking.
Bai Y, Yao L, Wei T, et al. Presumed Asymptomatic Carrier Transmission of COVID- 19. JAMA. Published online February 21, 2020. doi:10.1001/jama.2020.2565
Coronavirus disease 2019 (COVID- 19) Situation Report – 58, Data as reported by national authorities by 00:00 CET 18 March 2020. https://www.who.int/docs/default-source/coronaviruse/situation-reports/20200318-sitrep-58-COVID- 19.pdf?sfvrsn=20876712_2