Digital banking isn’t new, but with the coronavirus pandemic, young and old Americans suddenly flocked to online and mobile banking en masse. The sudden uptick in online and mobile traffic even created outages. Among those affected: online platforms for U.S. Bank, PNC, Fifth Third Bank, Bank of America, T.D. Bank and BB&T.
“What we are seeing are some hiccups related to an increase in demand from Covid-19 across a lot of the industry,” said Brandon Larson, managing director at Novantas, a fintech company that uses big data and machine learning to analyze data about bank customers, deposits and markets.
Much of the demand has been associated with stimulus checks. Americans who checked their balance once a week suddenly started checking a few times a day. Networks are often prepared for two to three times in volume, but businesses run into problems when capacity is pushed to 20 times the usual volume. “It’s forced digital capabilities and capacity. It’s certainly put an increased emphasis on digital banking,” Larson said.