Study reveals a significant increase in payments for bills, services and other expenses through alternative channels
Taken from Diario Libre
The COVID-19 pandemic accelerated the development and adoption of alternative digital channels in the country's financial intermediation to the point that 45.6% of multiple bank transactions are carried out through their mobile applications and websites, according to the results of the first ranking of digitization of Dominican banking 2021, published by the Superintendency of Banks (SB).
In the case of savings and loan associations, digital transactions represent 16.2%, 13% for savings and credit banks and 1.6% in the case of credit corporations.
The study reveals a significant increase in transactions carried out through alternative channels, with bill and service payments standing out, both to another entity and to the same entity, whose growth was 33%.
There was also an increase in the management of shifts and appointments (7%), activation and deactivation of cards (4%), payment of taxes (4%), management of beneficiaries (4%), generation of account statements (4%) and withdrawals at ATMs (4%).
According to the SB report, movement restrictions and fear of infection motivated users to use alternative digital channels for the first time. For example, 15% of banking customers adopted mobile applications for their regular transactions, making it the fastest-growing channel.
Similarly, 8% of users started using their financial institution's web portal, 6% the teleservice (telephone), 3% the electronic wallet, 3% banking sub-agents, while 1% embraced online banking and mobile applications for business.
Tendencies
Before the health emergency, financial intermediation entities were in the process of implementing different products, services and digital platforms that were accelerated due to the pandemic.
This is the case with savings and loan associations, 60% of which have successfully implemented online banking, reaching 80% penetration of this channel by the end of March 2021. Furthermore, 30% of these entities are working on developing mobile applications, and 40% wish to implement digital onboarding (contracting services entirely without visiting a branch).
Other entities, such as savings and loan banks, implemented online banking, mobile applications, and the banking sub-agent channel. Meanwhile, credit corporations enabled the receipt of complaints via email.
Multiple banks focused their efforts on authentication mechanisms, new functionalities through their mobile applications, and other innovations such as artificial intelligence technologies, chatbots, and biometrics.
Due to the health crisis and containment measures, Dominican financial institutions adopted contact methods such as institutional WhatsApp and implemented electronic signatures to avoid travel and expedite procedures.
