No matter how strong countries and their economies were, a pandemic was enough to wipe all the impressive GDP numbers off the table. Though some might reckon it to be a disastrous event, others might see some beneficial outcomes that few industries have witnessed during this uncertainty phase.
Large scale industries and companies with a powerful online presence have pulled through, all thanks to their sheer dominance and widescale spread of operations spanning globally. For others, it was an unpredictable and life-changing event not only for small and medium scale businesses but for the fintech companies as well.
As they say, you see the light at the end of a tunnel; there are some key takeaways from this series of unprecedented happenings, that could prove to be in favor of fintech companies. If harnessed in the right manner, it could prove to be pivotal in kickstarting economies and paving the way for impeccable growth in the Fintech sector.
The Rise of Fintech Companies: In the Post-Pandemic World
Let’s checkout what lies ahead for the Fintech Companies across the globe:
1. It is What It is!!
The crisis has already hit individuals and economies. What can you do about it now? You can either crib about it or accept the new normal and adjust to it. It’s the notion that many fintech companies are adapting to a digital way of moving forward. Examples are cashless payments, digital currencies, the emergence of bitcoins, net banking, UPI transfers, etc. Some of the options that fintech companies have heavily relied on to improve their stability in the market.
In the present-day scenario, companies are trying to go all digital and streamline their way of conducting their operations with a work from home environment. All thanks to this, newer technologies are eventually going to erupt and keep altering the course of the fintech sector for a more generous and bright future. “Respond” and “Recover” is the new slogan that raises hope for the fintech sector!
Even the biggest financial centers of the world have started to adapt to this changing scenario. And, fintech industry is no exception!
2. Digitalization is the Future
Innovation is going to play a trump card on how stable or vulnerable the fintech players are going to be beyond the impact of COVID-19. Under fintech companies, there are businesses of lending and borrowing companies that have to carry out activities through papers and documents. The same could be done digitally, which is more comfortable and relatively safe as well.
In the coming days, internet banking and all types of online banking services are going to be revamped, where the fintech companies can make the most use of and harness its true potential. By doing so, it will provide better features for more excellent customer retention and enhance the current procedures to sophisticated and safer methodologies.
3. More Power to Gig Workers
If you want something beneficial, but for a low-end cost and no liabilities, then harnessing the power of gig workers could prove to be essential. Several Fintech firms have taken this opportunity utilizing their knowledge, expertise, and skills to great use for a sustainable and affordable outcome. Since the pandemic struck, things haven’t been the same.
When you get more bang for the buck, why wouldn’t you dive into the opportunity? Though many sectors might undermine the usage of gig workers, the FinTech sectors could utilize it entirely and result in fruitful results.
4. Solutions for Data Ownership
With things slowly sliding, using technology to its fullest potential has become even more necessary. The data collected like chatbot data, internal performance, app usage, gamification, etc., and the information once gathered proves to be fruitful in designing services, features, and decision making.
Furthermore, the data collected does help in revamping the ML and AI algorithms used to make better decision-making models. The greater the data fed into their algorithms, the accurate the outcome. But, the security and privacy concerns does matter! So, companies need to keep that in mind while building their strategies.
5. Internet of Things
Internet of things is an excellent way in which Fintech companies can exploit the situation exponentially. The possibilities are limitless, and any innovation under a contactless transaction regime would get a broader range of consumers. It is a human tendency to try out newer things, and if any such transaction provides a seamless banking experience, then it is a feasible solution to implement.
6. Technology, Technology, and Technology
The impact of COVID-19 has shown us that what technology that we have today is not enough to carry out all the necessary activities of our daily lives. Even digitizing the existing practices is not going to cut it. Every day, fresh things have to be implemented by Fintech companies to make the most of the situation and ensure a greater return. The more advanced the technology, the better fruit it might bore in the coming days.
Algorithms used for simply converting documents to a soft copy is not sufficient. There have to be additional ways in which data collection, storage, and even conversion from one format to another have to be carried out feasibly for yielding practicality and sustainability.
Investing money is one thing, and investing in technology to adjust to the modified trends is another. So, may it be an individual or a company, technology is inevitable!
7. Fast-tracking Economic Efforts for Relief
Several Fintech companies have a robust framework of networking and digital payment gateways. Though they are full-fledged with the latest and greatest of security features, the platforms were not being used extensively and remained functioning with a little load. But, now these could be put to use!
Also, through such gateways, having a robust payroll processing system could prove to be vital in the coming days as rapid disbursement of funds would be required, and making full use of the platforms could help companies at large. Governments could use their gateways/portals to transfer relief funds that would prove to be a better aid to the hard-struck amongst the Fintech companies.
8. Two is Better than One
When companies enter a partnership, things do get interesting. The whole purpose of the association is to fulfill all the demands put up by the other company and help one another out. Fintech companies could enter into a partnership with nonfinancial institutions, Big tech firms, and FinTech companies for any specified purpose to take complete leverage of the situation in a particular domain.
For example, if fintech companies could integrate their services and offers with hospitals and healthcare centers, it could prove to be vital in streamlining the financial side of things. Another great example is the partnership between Walmart and PayPal.
COVID-19 has shown us that technology cannot be taken lightly, and stressed enough to forecast its importance in our lives. Through technology, we have witnessed newer payment methods, modernized software that utilizes digitalization of documents, handy tools and applications, and much more.
With further improvements in Fintech, things are looking brighter where the entire industry could one day go paperless and contactless. However, it is sad to note that the way things were before the pandemic broke out, are never going to be the same. Either way, for the survival of Fintech companies, adjusting to the new normal is the way for a better and safe future. Whether it is a bullish or bearish market, any ups or downs, we must think and act wisely to overcome and get back even stronger.