Covid-19 Will Accelerate Digital Banking, Says National Bank Of Bahrain CEO

The ongoing Covid-19 pandemic and concerns about social distancing have accelerated the adoption of digital banking channels and may hasten the end of ‘traditional’ branches, according to National Bank of Bahrain CEO Jean Christophe Durand.

In an interview with Arabian Business, Durand said that in NBB’s case, the use of digital channels among its 200,000 retail customers has “increased tremendously” since the beginning of the pandemic.

“It’s not a reaction to the crisis, but I’d say it’s an acceleration of the process,” he said. “But digital strategy takes time. It does not happen overnight….you need to educate your clients, and in a way the crisis has been an accelerator of this education process.”

While Durand said that there’s still room for improvement when it comes to digital banking platforms, the immediate future will see a “balancing” as more and more people shy away from traditional branches.

“The younger generations will go straight to digital and not visit branches, and we will see part of our older clients slowly shifting,” he said. “Is there room for growth in the network? I don’t think so. Do we need them in the same way as the past? No.”

In January, NBB announced that it will take over a 78.8 percent majority stake in Bahrain Islamic Bank, after previously owning 29.06 percent.