Globally, the COVID-19 pandemic has affected over 10 million people and claimed over 500,000 lives. The increasing numbers are an extremely dangerous trend. While there are no signs of the pandemic slowing down and a vaccine seems elusive, taking the strictest precautions seems like the only way to defeat the coronavirus. The standard precaution that has become the global norm is ‘social distancing,’ which prohibits large gatherings, crowds, meetings, etc. This move has resulted in serious implications, such as the closing down of several public facilities and businesses, viz. Gymnasiums, spas, schools, companies, etc. Essential services like hospitals, medical labs, banks, postal services, etc., are working at reduced capacity but are fully functional.
At the same time, governments are strongly discouraging citizens from getting out of their homes for work and shopping needs. “Going Digital” is the new mantra, and Work From Home (WFH) is the new normal around the world. Although countries like the United States and India are gradually easing the lockdown, people remain wary of the risk of infection and are heavily relying on digital services and artificial intelligence. This scenario, although unfortunate, presents a huge opportunity for digitization.
How Major Corporations Embraced Digitization During COVID-19
Corporate heavyweights such as Cairn Oil and Gas have fully integrated its operations with cloud computing, artificial intelligence and remote collaboration (How Digitization is helping Cairn India during Covid-19 crisis, 2020). IT giant Wipro’s chairman Rishad Premji, recently announced that his company will never go back to the old ways of working 100%; that the new normal of WFH is what the company plans to adhere to. (Will never come back to 100% work from office: Wipro’s Rishad Premji, 2020).
Keshav Murugesh, CEO- Business Process Management, WNS is certain that WFH will continue in the post-COVID-19 world as well. WNS transported almost 25 lakh desktops within a fortnight to employees’ homes to ensure business continuity and the company is leveraging the new normal.
According to the ‘2020 Remote Work From Home Cybersecurity’ report, 63% of organizations had up to 25% of employees working remotely before COVID-19. Now over 75% of their employees are working from home. (Enterprise Talk, 2020). Hence digital service providers have reason to rejoice.
Digitization in the Banking Sector: A Permanent Shift
According to the Economic Times, the ‘Leaders’ that integrate a mobile-first approach for their services will quickly see improvements in ROIs and earn their customers’ trust. “Automating processes and improving customer communication by implementing new-age digital solutions should be the way forward for banks moving on.” According to the World Economic Forum, a 2020 research survey found that 82% of consumers were concerned about visiting their bank branch and 63% showed a willingness to try digital apps for banking needs. Banks are thus making a beeline for fintech firms.
The Rise of Neobanks
Interesting trends of “neobanks” or fully online banks are making an appearance in Singapore, USA and Europe as well. According to Finder.com, by 2025, 43% of Indians will have a digital bank account and Emarketer states that the business value of AI in global banking will reach $300 billion by 2030 as 47% of worldwide companies want to work with a fintech firm.
The COVID-19 pandemic has thus provided a huge opportunity for Digitization. Moreover, in the fintech sector, banks are increasing dependency on the former for engaging and seamless customer experience. In addition, banks will reduce operation costs drastically as more employees work from home and customers rely on digital banking.
The Long-Term Opportunity: Why Digitization Is Here to Stay
The pandemic was a catalyst, not the cause. Digitization was already underway — COVID-19 simply compressed a decade of change into two years.
Countries like the United States and India have eased lockdowns, but consumer behavior has permanently shifted. People are now comfortable — and often prefer — accessing services digitally. Businesses that invested in digitization during the crisis are emerging stronger, leaner, and more competitive.
For digital service providers, fintech companies, and cloud infrastructure firms, this era represents a generational opportunity.
Frequently Asked Questions (FAQs) About Digitization
1) How did COVID-19 accelerate digitization?
COVID-19 forced businesses and governments to adopt remote work, online services, and digital infrastructure almost overnight. Social distancing and lockdowns made physical operations impossible, making digitization a survival necessity rather than a strategic choice.
2) Are neobanks safe?
Yes. Neobanks are regulated financial institutions that use advanced encryption, two-factor authentication, and AI-driven fraud detection. In many countries, deposits in neobanks are insured just like traditional banks.
3) How does AI support digitization in banking?
AI enables banks to automate customer support (chatbots), detect fraud in real-time, personalize financial products, and process loan applications faster — all of which improve efficiency and customer experience while reducing costs.
