Greater use of digital services

Social distancing has accelerated the use of digital services offered by Europe’s largest banks, according to Moody’s.

The credit ratings agency looked at data published and statements made by senior management of Europe’s largest 35 banks.

Those with the best digital offerings will have a competitive advantage and be better able to scale up their businesses to support revenue post Covid-19, Moody’s said.

Social distancing has also shown the benefits of working remotely and highlighted potential cost savings that banks heavily reliant on bricks

“Distancing has also shown the benefits of working remotely”

and mortar could achieve, it added.

But it also warned the accelerated adoption of digital services will require further investments in IT infrastructure and may increase cyber risk.

Across Europe, the highest increase in digital uptake was reported by banks operating in countries with relatively low digital banking penetration, such as Spain, Cyprus Italy, Germany, Poland and Hungary.

By contrast, the pace of adoption of digital services remained “broadly steady” in Nordic countries and in the Netherlands, where digital penetration is already high.