Banking's new mobile frontier

Oct. 22—ANDERSON — Nearly every facet of daily life in America has been altered in some way by the coronavirus pandemic.

From work to eating out to socializing, it's hard to think of any part of our daily routines that haven't been touched by COVID-19.

That sea change has arguably been most profound in the way consumers save, spend and move their money.

At the outset of the pandemic in April 2020, banks worldwide saw a 200% increase in new mobile banking registrations, and traffic on banking apps soared by 85%, according to Fidelity National Information Services. In the last year, online and mobile banking app usage have increased across virtually every demographic — including seniors, a group traditionally seen as being among the last to warm to new technology.

According to a pair of recent studies by Cornerstone Advisors, a banking consulting firm specializing in technology strategies, more than half of those age 75 or older who own smartphones are using their banks' mobile apps.

"We have a lot of people that now want to either do a lot of things virtually or they want to call us directly," said Migual Patterson, CEO of Lampco Federal Credit Union. "We are trying to ensure that all of our members have access to everything online that we can give them."

Local banking executives, while acknowledging that the pandemic has brought far-reaching changes to their operations, aren't ready to declare that the days of conducting business at brick-and-mortar locations are over.

"Our customers were using the drive-thrus a lot, particularly when we were in a state that our lobbies were by appointment only," said Terri Cable, the Northeast Indiana regional president at First Merchants Bank. "We had to use alternative channels, but it was funny because when everything opened back up completely, we found that people wanted to come back into the banking centers."

Patterson said that although many former banking centers around the county have closed, several that remain are transforming into full-service financial management centers.

"I think if someone comes into the bank, they're coming there for something other than just cashing a check or depositing a check," he said. "If it's there, that place needs to be almost like a service center for all things, not just a place to go and cash my check."

Balancing their offerings between traditional teller services and more technology-driven platforms has prompted many banks to take a fresh look at their employees' skill sets.

"A couple months ago we actually raised our starting pay to be more competitive in the market and to get top-level talent when they come into the banking center," said Emily Blue, who manages the First Merchants branch in downtown Anderson. "We kind of have just shifted to more cross-training ... so they're getting cross-trained on opening accounts, putting loans in, doing lines of credit."

Blue added that the size of her staff — eight employees, plus a "floating" teller who frequently helps at other branches — has remained consistent throughout the pandemic.

"I don't really think it's hurt our staffing any," she said. "I just think we're being more well-rounded bankers so that we can fit that customer's need."

Patterson, who oversees an administrative services staff as well as a branch on Anderson's south side, said that, although he's seen relatively little turnover, skills in IT and sales are becoming more prominent among the candidates applying for positions.

"Our average employee is somewhere in the 20-year range, but it definitely holds its challenges as we get to hiring folks," he said. "We want to make sure that all our employees have the right access to the current technological advancements that are out there, because it's changing a lot."

Follow Andy Knight on Twitter

@Andrew_J_Knight,

or call 765-640-4809.