How Covid came and left us more digital

When the pandemic hit in 2020, the trend of using online services accelerated for obvious reasons. Over three years later, those who use digital channels is accelerating.   

Australians and New Zealanders are noted as early adopters of new technology, with a report from Datrareportal indicating that 91% of Australia’s population use the internet, which is an increase of 3.4% between 2021 and 2022. The Datareportal report on digital use in New Zealand indicates that internet penetration stands at 95.9%.^{1 2} Even before the pandemic, the market for digital banking and payments in our region was thriving. But the abrupt closure of bank branches and insurance offices during lockdowns forced more people to try using apps and online platforms for the first time. 

Research in the USA by McKinsey Digital revealed three-quarters of those who used digital channels for the first time during the early days of the pandemic, planned to keep using them as business normalised. Since then, a subsequent report by McKinsey Digital indicates that digital adopters make up 90% of consumers in the banking, telco, insurance, entertainment and utilities space.³

The appeal of digital channels 

The numbers show most people prefer a digital approach. According to Anna Bligh, CEO of the Australian Banking Association (ABA) more and more Australians are moving at a faster pace than they even have, to move their banking online.  Fewer people are using in branch services, so banks are putting their resources into protecting customers online from scams, fraud and cyber attacks to keep them safe.⁴ 

In New Zealand, according to Canstar, 92% of all Kiwis do all their banking through a digital medium, with the number of Kiwis banking via a mobile app up from 10% to 61%.⁵ 

Convenience is the main appeal of these digital services – customers can check their finances, pay bills or update their details from almost anywhere, at any time. 

Responding to customers, financial service providers are reducing costs, removing complexity and unlocking efficiencies, says Bill Borden of Microsoft.⁶

Businesses are bolstering their digital offerings 

As customers move online, their financial services providers are quickly moving to meet them. Major banks and financial institutions alike are racing to offer better, faster and smarter digital services for their customers. This new digital ‘arms race’, as some are calling it, has seen financial services of all shapes and sizes increase their investment on new technologies to protect their customers.⁷ 

As we integrate what was the AIA Australia Superannuation and Investment Life Insurance business with Resolution Life, there will be opportunities to leverage the many digital adoption opportunities for our customers. This will happen in due course and we will share more information on these developments when it’s appropriate. For now, if there is anything you need from us, you have the option of communicating with us via an online enquiry form, or visiting resolutionlife.com.au where you can find forms, documents and lots of information about our products and services.