Qualitative changes in commercial banking in the context of the impact of the COVID-19 pandemic
Qualitative changes in commercial banking in the context of the impact of the COVID-19 pandemic

Summary/Abstract: Research background: The COVID-19 pandemic has significantly impacted the global banking sector, leading to shifts in operational dynamics and customer interactions. This study explores the pandemic's dual impact, emphasizing the rapid transition from traditional to digital and mobile banking, and the resultant decline in physical branch banking. Purpose of the article: The main of this paper is to examine the changes in customer behaviour and bank operations, with a focus on the integration of digital and physical channels through omnichannel strategies. The research also addresses the increased credit risks, operational challenges, and regulatory hurdles banks now face, alongside the potential for digital innovation and enhanced customer engagement. Methods: At the core of this analysis is the pandemic's effect on banking distribution channels, with a marked acceleration towards digital and mobile banking, fundamentally altering the banking service landscape. The study investigates how these shifts have influenced customer behaviour and bank operations, noting the decline in traditional branch banking and the emergence of omnichannel strategies that blend digital and physical banking channels. Additionally, the paper assesses the wider implications of these changes for the banking sector, including increased credit risks, operational disruptions, and regulatory challenges, against the backdrop of opportunities for digital transformation and innovation. Findings & Value added: By synthesizing insights from academic and industry sources, the study aims to provide a comprehensive view of the banking sector's adaptation in the post-pandemic era. This includes a nuanced understanding of the evolving banking landscape and its implications for the future, offering valuable insights for banking professionals, policymakers, and academics.

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