1 out of every 2 banking transactions done through online channels

ONE out of every two banking transactions in Turkey is carried out through online channels, with mobile banking being the most preferred method, the latest study shows. The “Remote Banking in Turkey from the Customer’s Point of View” survey suggested that almost half of the customers in Turkey make all their transactions online, while the proportion of customers who go to the branch for all kinds of transactions remains at the level of only 2%. This 2% of people prefer to go to the branch to get to know the staff and get information.

Some 1,209 individuals from 12 regions were surveyed for the study, done by the London-headquartered OCR Labs, a digital ID verification business that provides frictionless customer onboarding, data security and protection against fraud, and CurioCity Research and Consultancy Services. The research was conducted to understand how the opinions of users in Turkey about the new digital services of banks have been shaped in the pandemic environment.

MOBILE TOPS

Users who prefer online-only channels in the 34-44 age group account for 48% of the category, while in the 45-55 age group, this figure rises to 52%, it showed. The most common transactions that customers do with remote banking are credit card applications, credit applications, opening a savings account, insurance applications and opening an investment account.

Some 79% of users prefer remote banking for opening and managing deposit accounts, 59% opt for it to transfer money, and 53% use mobile banking, the study showed. According to the research, mobile banking is the most preferred method, while the call center stands out as the least preferred channel in all types of transactions. In addition, the branch is the most-used channel for loan applications/transactions and pension/insurance applications.

BIG CHANGE IN 20 YEARS

Technological developments have caused fundamental changes in almost all sectors over the past 20 years, said Russ Cohn, general manager of international operations at OCR Labs, of the research.

“The banking and financial sector, which has been transformed by technology, has also benefited from these innovations, greatly increasing their efficiency and the penetration of customers globally. However, the coronavirus pandemic has created a wave of remote banking in the sector,” Cohn noted.

He underscored that the pandemic, which has made it almost mandatory to remain confined at home and use remotely accessible services, has set the stage for banks and financial institutions to improve the experience offered to their customers, as well as the opportunities provided by their products and services in a short time.

“In light of all these developments, Turkey has joined the list of countries that have made innovations in the field of digital ID authentication with the regulation that allows financial institutions to use digital authentication instead of physical processes to open personal accounts,” Cohn said.

According to the research, the proportion of customers who are aware of the regulation of the Banking Regulation and Supervision Agency (BDDK) supporting remote banking reaches 40%. The group that is aware and sees the regulations as positive is composed of mainly employees and small- and medium-sized enterprises (SMEs).

When this group is examined in detail, it is seen that 34% of white-collar workers, 36% of managers, and 33% of SME owners are satisfied with the arrangement.

Among those who are aware of the new regulation and do not support it, blue-collar employees make up the majority with 16%.

When looking at those who are not aware of the new regulation, those who do not work stand out with 73%, students with 69%, pensioners with 67%, the youngest banking customers aged 18-24 with 65% and women with 63%.