Adjusting to the New Normal Banks Set to Accelerate Digital Adoption
Adjusting to the New Normal Banks Set to Accelerate Digital Adoption

Adjusting to the New Normal: Banks Set to Accelerate Digital Adoption

Every new year brings fresh expectations, plans, and challenges for the future. Likewise, entering a new decade intensifies the momentum even more. However, 2020 will certainly be remembered as the year the entire world went unhinged.

It’s safe to say that the COVID-19 pandemic has completely transformed the way the world operates, especially with social distancing reshaping humanity and the way we used to live. Moreover, in the current landscape, every industry needs to assess the new reality and act accordingly — including the financial sector.

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Reinvention for the financial sector isn’t a choice, it’s a need

While many banks and financial institutions were already taking baby steps in digital transformation (a great example is UnionBank with their innovative digital strategies), COVID-19 has made it a requirement. After widespread bank branch closures, it is no longer possible to open business bank accounts or apply for loans in person, and many financial institutions are unable to onboard new customers remotely. The current climate has simply forced banks to digitize their operations further and faster.

To avoid catastrophic revenue losses for banks and customers alike, the financial sector has no choice but to shift to existing digital channels or make a bigger pivot to a sustainable digital strategy. This isn’t for naught as well. According to the recent Digital Around the World in April report by Hootsuite and We Are Social, the Philippines has seen the highest number of people reporting an increase in the amount of time they spend online. Almost 64% of Filipino said their time online has increased, compared to a global average of 47%. Additionally, 23% of users shared that they spend more time shopping online

Covid-19: Increased in social media use by country
Courtesy of We Are Social

What do these statistics mean for the financial sector?

Simple: digital adoption is the most effective way to succeed and thrive in the new reality. Even after community quarantine guidelines are relaxed post-COVID, the digital habits that Filipinos have picked up during the pandemic will only strengthen and they will start expecting improvements or innovations from the banks they patronize.

Remember, there will be no return to normal. The pandemic is permanently reshaping the way Filipinos live and work. The behaviors developed in this crisis — including digital adoption on a wide-scale level– will outlast the pandemic, well after restrictions on movement and activity are lifted.

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Credit scoring with telco data: the new normal

To stay competitive, banks and other financial institutions in the Philippines must respond to these behavioral changes and meet emerging customer demands. These include leveraging telco credit data scoring as a way to determine the creditworthiness of a customer.

As smartphone usage has immensely increased during the quarantine, a Telco Scoring model can effectively build a highly predictive credit score for subscribers based on their call patterns, transactions, locations, social circles, and profiles. Furthermore, it allows you to serve the unbanked and underbanked, helping you make reliable and relevant credit decisions for the untapped market — the market that may have been hit the hardest by the pandemic and need the resources to bounce back.

FinScoreis a fintech company in the Philippines that offers telco data credit scoring solutions to banks, financial institutions, credit bureaus, and technology providers. Trusted by Telecom companies, we have delivered over 2.5 million scores in the Philippines, helping the country’s financial sector increase approval rates, reduce defaults, and combat fraud.

For more information and inquiries about telco data credit scoring and digital adoption for your bank, don’t hesitate to contact us today.

FinScore is a financial technology company in the Philippines that offers a powerful credit scoring platform and fraud detection tools based on alternative data, including telco-based data. 

As the pioneer in lending and scoring of the unbanked, we continuously provide fintech services that empower financial institutions, banks, and credit bureaus with flexible platforms to help them make insightful and reliable credit decisions. Contact us today to learn more about our products and solutions for financial institutions.