Air raid alerts are changing banking: activity in mobile apps may have increased by 15–20%

Frequent and prolonged air raid alerts are gradually changing banking customers’ habits: more and more people are trying to carry out their everyday transactions remotely, while mobile banking apps are effectively becoming full-fledged “digital bank branches”.

In August alone, against the backdrop of massive missile and drone attacks, activity among mobile banking users may have increased by approximately 15–20%.

This was stated in a new podcast on the Finance.ua YouTube channel by Serhii Mamedov, Vice President of the Association of Ukrainian Banks and Chairperson of the Management Board of GLOBUS BANK.

“After visiting a bank branch two or three times and being caught in a prolonged air raid alert, a customer will quite naturally check whether their issue can be resolved remotely before making another trip. That is why a mobile app is effectively a full-fledged digital bank branch today,” the banker noted.

According to him, people's safety remains the top priority during air raid alerts. Therefore, services at bank branches are suspended, and both customers and employees must move to shelters.

That is why banks are increasingly moving everyday financial transactions to smartphones. Through mobile apps, customers can make payments and transfers, top up accounts, check balances, manage cards and limits, open deposits, exchange currencies and, at some banks, access certain lending products.

At the same time, the banker emphasised that the growing popularity of mobile banking also increases customers' responsibility for their own digital security. Banking apps should only be downloaded from official app stores or via links on the bank's website. Customers should avoid clicking on suspicious messages about “banking app updates” and never share their PINs, CVVs, passwords or one-time verification codes with anyone.

Customers are also advised to exercise caution when using banking services over public Wi-Fi networks, keep their smartphone operating system and banking app up to date, and protect their phones with a strong password or biometric authentication.

However, according to the expert, it is impossible to abandon the physical branch network entirely. Some transactions, including more complex business lending products, car loans, mortgages and partner programmes, still require document verification, consultations and direct communication with a bank manager.

“Banks are effectively facing a dual task: moving as many standard transactions as possible to smartphones while maintaining a strong physical branch network for products and customer needs that cannot yet be fully digitised,” Serhii Mamedov explained.

Another challenge for the banking system is preparing for winter and possible prolonged power outages. One of the key elements of financial resilience is the POWER BANKING network — a unified system of bank branches capable of providing essential services even during extended blackouts.

The network currently comprises approximately 2,400 branches across the country, around 75% of which belong to systemically important banks. Their ability to operate independently is ensured by alternative power sources, backup communication channels, cash reserves, enhanced cash collection services and staff readiness.

Most POWER BANKING branches also offer “ATM national roaming”, which allows customers to use ATMs operated by other banks participating in the network. Ahead of winter, banks need to carry out additional tests of backup communication channels, generators and other power equipment, ATM operations, cash collection, internal systems and cybersecurity measures.

The banker also urged customers not to try at all costs to complete a banking transaction or reach a bank branch during an air raid alert.

“The main rule here is extremely simple: safety first, banking transactions second. Modern technology makes it possible to postpone most financial matters or handle them remotely. A modern bank must be accessible wherever its customer happens to be: if a branch is closed due to an air raid alert, the customer can use the mobile app; if the power goes out, backup infrastructure must keep operating. The banking strategy already in place will make it possible not only to “get through the winter”, but also to actively introduce new technological solutions that will strengthen the resilience of Ukraine's banking system,” Serhii Mamedov concluded.