The document discusses the acceleration of digital banking due to the COVID-19 pandemic. Some key points: - Branch usage declined 35% on average over 5 years among all age groups, while digital interactions rose 15% due to temporary branch closures and fears of in-person contact. - Younger generations are more likely to use digital banking and have less brand loyalty, with millennials and Gen Z being the most likely to switch primary banks. - Banks plan to enhance customer experience through improved data analytics, customer service, mobile apps, and chatbots to better compete in the digital space. - Digital banking provides convenience but fails to build strong emotional connections like in-person banking, so banks must make digital

1. Digital Banking, Acceleration
and Challenges
April 2022

2. © 2022 Deloitte Central Mediterranean. All rights reserved.
Covid-19 Lead to a New Digital Normal
Sources: Deloitte’s 2021 Digital Banking Consumer Survey; The Deloitte Center for Financial Services Global Outlook Survey.
Across all age groups, the
share of Americans who
did not use financial
services online fell by
over 30 percent
Temporary bank branch
closures and fear of high-
contact surfaces have
pushed customers to
online or mobile banking
Mortgage, Consumer
loans and advice on
banking products
remained the most
branch loyal services
Across all age groups,
branch usage declined
on average -35 percent
over the previous five
years, and the number of
digital interactions rose
by 15 percent
The foundation of the
banking ecosystem has
greater incentive now
more than ever to
reorganize around digital
From simple payment
transactions to obtaining
advice on their finances,
all types of services
began to be used online
for the first time
ACCELERATION DUE TO COVID -19 COVID-19RESULTS IN BANKING
-24%
-34%
-44%
-48%
19%
15%
11%
13%
% CHANGE IN QUARTERLY CHANNEL
USAGE BY AGE GROUP (2015 - 2020)
Branch Digital
18-34
35-49
50-64
+65
Digital Banking, Acceleration and Challenges 2

3. © 2022 Deloitte Central Mediterranean. All rights reserved.
63%
60%
53%
42%
41%
41%
Customer Data Analytics
Customer Service
New alternative data
Upgrading mobile apps
Chatbots
In-branch technology
Enhancements banks plan to make to improve retail and
institutional customers’ banking experience
20%
28%
16%
6%
1%
Gen Z Millenials Gen X Boomers Matures
Likelihood of retail banking respondents to switch their
primary bank
Series 1
Sources: Deloitte’s 2021 Digital Banking Consumer Survey; The Deloitte Center for Financial Services Global Outlook Survey
Flight Risk Empowering Customers
Digital Interactions, while easy and convenient, fail to forge emotional
connections. Younger Generations, who tend to used digital channels the
most, typically have less brand loyalty. Digital Banking Consumer Survey
revealed millennial and Generation Z respondents were more likely to
switch their primary bank Compared to older consumers.
While branches should remain the primary channel to forge deeper relationships, making
digital banking channels, such as chatbots, more responsive and empathetic like humans,
could differentiate in crowded digital world.
In Banking, customers experience is typically owned by the lines of business, digital and
customer service functions. Marketing should work with the functions to provide insights
on the human/ emotional aspects of customer behavior and the market relevance of
those insights
A New Risk on the Horizon
Digital Banking, Acceleration and Challenges 3

4. © 2022 Deloitte Central Mediterranean. All rights reserved.
Quick and seamless onboarding
Driven by touchless technologies,
including face scanning and
document recognition, done end
to end in 3-5 minutes
Integrated management tools
Backed by dashboarding
capabilities on web and mobile
apps, giving a full view of
customers' finances
Goal-based sub-pockets
That allow customers to
organize their money as they
wish
Real-time spend notifications
As transactions occur that can
be personalized as needed
Advanced access and security
To help prevent lockouts and
aid in easy recovery via
biometric login features
01
02
03
04
05
Table Stake Digital Banking Features
Basic spend insights
offered via spend analytics
dashboards that are intuitive,
customizable, and easy to use
for personal finances
06
Digital Banking, Acceleration and Challenges 4

5. © 2022 Deloitte Central Mediterranean. All rights reserved.
Satisfaction Emotional Connection
Satisfaction is relative
Banks’ ambitions for digital experiences have
traditionally been to replicate in-person interactions,
making purchasing and servicing journeys available
online. This approach delivered an experience familiar
to what clients were used to in branches but lagging
other industries, which used digital to re-imagine the
experience.
Builds Relationships
Banks should focus on how they make their customers feel.
Banking should become more human, and banks are now
moving beyond product enablement to deliver a digital
proposition that elicits trust through intimacy, relevance,
and perceptiveness. They should focus in providing quality,
convenience and value via an exceptional digitally driven
consumer experience areas where digital service providers
like Apple, Google Amazon outperform
Customer
Customer Satisfaction vs Emotional Connection
Digital Banking, Acceleration and Challenges 5

6. © 2022 Deloitte Central Mediterranean. All rights reserved.
Banking Ecosystem
Banks
1
Fintechs
3
Bigtechs
2
Banks should try to collaborate with both.
Bigtechs have access to unique customer
date and enhanced ability to generate
insights powered by cloud and advanced
analytics.
Fintechs can be more eager to engage as
enablers to strengthen under served
segments
Fintechs have become more mature
and mainstream; they have firmly
established themselves while
growing their influence in
unforeseen ways.
Bigtechs have the unique distinction of
inspiring both awe and anxiety among
banks which complicate the decision
on when to compete and when to
collaborate
Ecosystems are Continuously Expanding
Digital Banking, Acceleration and Challenges 6

7. © 2022 Deloitte Central Mediterranean. All rights reserved.
03
01 02
Banks have a unique opportunity
to influence stickiness and
strengthen relationships
Banks should capitalize on the momentum in the
use of digital self-service channels and try to
elevate customer experience with innovative blend
of human and digital features
Younger Consumers demonstrate
preferences for both physical and
digital channels
However, they are less satisfied with their primary
banks and they are also at a higher risk of switching.
Generally, they are also more open to financial
products from digital –only banks and large
technology companies
Pandemic is still reshaping
banking preferences and
behaviours
Digital Banking – perhaps for the first time- may be
contributing to overall satisfaction with banks,
which still remains quite overall robust
Key Takeaways
Digital Banking, Acceleration and Challenges 7

8. © 2022 Deloitte Central Mediterranean. All rights reserved.
• Removal of questions of
outdated functionalities
• Question that in most
banks are default
• Merging or clarifying
questions
• Accessibility and inclusion
• Remote advisors
• Ecosystems
• E-commerce
• Investing
Sources: Deloitte’s 2021 Digital Banking Consumer Survey; The Deloitte Center for Financial Services Global Outlook Survey
POTENTIAL NEW AREAS /
FUNCTIONALITIES
POTENTIAL CHANGES TO
CURRENT
QUESTIONNAIRE
Functionalities UX
• UX Banking Playbook
• Virtual Data Room
• Global community
• International collaboration
• Collaborative design of
methodology
• Most outstanding user
flows, made better
BEST BANKING UX
PRACTICES COMPENDIUM
ACCELERATOR
FOR FINANCIAL INDUSTRY
DESIGN
2022 Digital Banking Maturity survey is launched
Digital Banking, Acceleration and Challenges 8

9. © 2022 Deloitte Central Mediterranean. All rights reserved.
Italy
Luxemburg
Netherlands
Norway
Poland
Portugal
Romania
Russia
Serbia
Slovakia
Slovenia
Spain
Germany
Greece
Hungary
Ireland
Czech Republic
France
Belgium
Bulgaria
Croatia
E U R O P E
Peru
Uruguay
Canada
Mexico
N O R T H A M E R I C A
Argentina
Chile
Colombia
S O U T H A M E R I C A
DBM2020 covered 39 countries; in 2022 we aim to go global
and include key world markets, e.g., USA, India, Brazil, China
A U S T R A L I A
Kuwait
Qatar
Saudi Arabia
United Arab Emirates
Singapore
Sweden
Switzerland
Turkey
United Kingdom
A S I A
Japan
Digital Banking, Acceleration and Challenges 9

10. © 2022 Deloitte Central Mediterranean. All rights reserved.
Will you drive the
changeor be
drivenby it?
Feel free to reach us for more information:
GeorgeGialitakis
Senior Manager
Core Business Operations
Consulting
ggialitakis@deloitte.gr
© 2022 Deloitte Central Mediterranean. All rights reserved. Digital Banking, Acceleration and Challenges 10

11. Thank you!

12. This document has been prepared by Deloitte Business Solutions Societe Anonyme of Business Consultants, Deloitte Certified Public Accountants Societe Anonyme and Deloitte
Alexander Competence Center Single Member Societe Anonyme of Business Consultants.
Deloitte Business Solutions Societe Anonyme of Business Consultants, a Greek company, registered in Greece with registered number 000665201000 and its registered office at Marousi
Attica, 3a Fragkokklisias & Granikou str., 151 25, Deloitte Certified Public Accountants Societe Anonyme, a Greek company, registered in Greece with registered number 0001223601000
and its registered office at Marousi, Attica, 3a Fragkokklisias & Granikou str., 151 25 and Deloitte Alexander Competence Center Single Member Societe Anonyme of Business
Consultants, a Greek company, registered in Greece with registered number 144724504000 and its registered office at Thessaloniki, Municipality of Pylaia - Chortiatis of Thessaloniki,
Vepe Technopolis Thessaloniki (5th and 3rd street), are one of the Deloitte Central Mediterranean S.r.l. (“DCM”) countries. DCM, a company limited by guarantee registered in Italy with
registered number 09599600963 and its registered office at Via Tortona no. 25, 20144, Milan, Italy is one of the Deloitte NSE LLP geographies. Deloitte NSE LLP is a UK limited liability
partnership and member firm of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms and their related entities (collectively, the “Deloitte organization”).
DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in
respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of any of each other. DTTL does not provide
services to clients. Please see www.deloitte.com/ about to learn more. DTTL, Deloitte NSE LLP and Deloitte Central Mediterranean S.r.l. do not provide services to clients. Please see
www.deloitte.com/about to learn more about our global network of member firms.
Deloitte is a leading global provider of audit and assurance, consulting, financial advisory, risk advisory, tax and related services. Our global network of member firms and related entities
in more than 150 countries and territories serves four out of five Fortune Global 500® companies. Learn how Deloitte’s approximately 312,000 people make an impact that matters
at www.deloitte.com.
This document and its contents are prepared solely for your use, and may not be reproduced, redistributed or passed on to any other person in whole or in part, unless otherwise
expressly agreed with you. No other party is entitled to rely on this document for any purpose whatsoever and we accept no liability to any other party, who is provided with or obtains
access or relies to this document.
© 2022 Deloitte Central Mediterranean. All rights reserved.