During the COVID-19 pandemic, banks’ clients have changed their behavior overnight reflecting adaptations to restrictions and health and safety requirements. As a result, a rapid surge is been observed in the digital opening of new relationships, registration & usage of mobile payment applications, and usage of contactless payments accompanied by the reduction in physical client meetings. This has also urged the banks to evolve and transform their digital business models rapidly, with new circumstances. Now the banks are required to make the provision for a large number of credit facilities, adapt offerings in support of clients’ needs, introduce fast, flexible, and effective measures to keep operations and services stable.

The experience has helped organizations in identifying the transformational capabilities of digital channels and operational setups, as well as the need for new value creation from data and analytics. Let’s explore some of the digital innovations that can lead the banks through the current crisis.

1. Fraud Prevention

COVID-19 pandemic caused an increase in cyber frauds; however, with the help of powerful technologies, it can be minimized. Artificial intelligence (AI) with its real-time data analytics, can act as an early warning system to prevent credit card frauds. It has the capability to evaluate the probability of fraud, and upon the suspicion, enables to take immediate request for client feedback to clarify the legitimacy. Not just that to minimize the loss from fraud cases, Adaptive analytics through machine learning can be applied by continuously reintroducing client feedback into the data model.

2. Core Banking Services

Banks invest heavily to add value for clients, by applying advanced analytics to their portfolios and offering related tailored products, investments, and advisory services. To ensure better customer service, banks can evaluate a client’s feedback with the help of digital solutions. On top of that, digital solutions and data analytics can also be used to increase the relevance and efficiency of client communications and personalize financial services as per the clients’ needs.

3. Operational Efficiency

The surge in new relationships and the use of contactless payments during the pandemic had also increased the need for operational efficiency. In banking a large number of documentation packages are prepared for client meetings, so with the blend of the distinct data element and robotics process automation, the client documentation can be generated from management tools and archives at a high frequency. The operational efficiency can also be enhanced with the help of Optical Character Recognition (OCR) which allows intelligent classification of incoming emails along with embedded meta-data and delivery to a digital mailbox.

4. Regulatory Compliance

The rising frauds during pandemic had made it difficult for banks to comply with regulations. However, when it comes to compliance with legal and regulatory requirements, data analysis can be very helpful. Machine learning can detect deviations in client and transaction profiles. Additionally, when the needs of the client are large and complex, it involves a high level of operational risk like Anti-Money Laundering (AML)/Know Your Customer (KYC) checks, in such cases ML tools can be applied to identify issues and enhanced interactivity/visualization to translate data into insights. It also helps an organization in reducing risks and ensuring compliance with the regulations.

Apart from helping the banking system in serving customers efficiently, preventing fraud, and driving operational efficiency, digital innovation is essential to address the issue of remote working too. The pandemic has forced the banks to set up themselves to be digitally amended to reflect remote working, communication, and client service, which is leading to an increase in the number of remote working arrangements. Technology no doubt will assist the banks in the best possible way.

Banking is a metaphor for trust in society, now is the time for banks to demonstrate its stewardship, digital innovation can lead the banks efficiently though this unexpected disruption of a pandemic and post-pandemic economy. You can also reach out to us for exploring digital applications that can help in your banking business.

The COVID-19 situation doesn’t seem to end, and now we have to learn to live with it. Several states and cities in the US and India are going under lockdowns again to curb the disease. So, what is the most common problem that people are facing nowadays? It’s Grocery Shopping. Since the brick and mortar grocery shops are open for a few hours only, they do not allow you the flexibility to purchase anything. Also, let’s face this, people are skeptical about going out and buying the essential items they require daily. 

The Current Scenario in the USA

Apps like Amazon and Instacart are hiring people on a large scale to meet the online delivery requirements. Amazon hired 175,000 associates in April, amidst the COVID-19 crisis. 

On the other hand, Instacart, an American Grocery Delivery application, stated that their weekly sales were 20 times the usual during the pandemic’s early days. This seems right since customers wish to practice social distancing, come in contact with fewer people, and shop groceries in a contactless manner. 

Companies across the USA are now highly interested in developing Grocery Delivery Apps to put ingenious concepts into tests, and therefore meet consumer needs in a better way by keeping in mind their health and well-being. 

The Current Scenario in India

Online Grocery Delivery services are enabling all the B2B companies in India to cope with these trying times. Even though they are delivering the requirements, the issue that still persists is the delivery time. To deal with this, several companies like Uber, Swiggy, Zomato, Meesho, Paytm, Perpule, and NoBroker came up with the idea of delivering groceries. This was a massive relief for companies like Big Basket and Grofers, who faced difficulty in managing their delivery fleet due to the high requirements. 

Now, these companies got the opportunity to resolve these issues by hiring more executives and improving their supply chains. This may look like a red flag for all the new players that entered the market. But, no. It’s not. The latest grocery delivery platforms are also gaining traction across the country because of the unique features that they provide. 

Challenges that arise with Online Grocery Shopping during COVID-19

Grocery is one such essential need that we cannot ignore. Consumers face problems daily to cope with their needs during the pandemic. Even though there is a high rise in the number of companies that are coming up with the aid, there are numerous challenges they face in the grocery delivery business. 

A few of them are: 

• Lack of Supply Chain Management
• Change in Business Model from Traditional to Revenue 
• Limited Workforce/Employees
• Delayed Deliveries
• Changes in Customer Demands & Customer Behavior- Panic Buying

The Future of Grocery Delivery Apps- What can be done?

According to a report by Grand View Research, the global grocery and food market is expected to grow at 5% CAGR from 2020 to 2027. There are prospects where Grocery Delivery Apps are going to earn huge profits in the near future. Although there are some challenges, eventually, they can be resolved as per customer needs. It is evident that the COVID-19 situation has expedited the whole process, but at the end of this crisis, the grocery delivery segment will still reach 0.5% of the total retail market (via Albinder Dhindsa, Co-Founder, Grofers).

So are you curious how much does it cost to Develop On-Demand Grocery Delivery App? Hire us, for developing something similar here!