Adapting to a largely digital lifestyle is one of the major changes brought about by the Coronavirus-forced lockdown. Apart from social interaction and official collaboration, this also includes greater adoption of banking apps for digital transactions.
72% increase in use of fintech apps
A new research from deVere Group has found a 72% rise in the use of fintech apps in Europe. Similarly, Asia and the Middle East have also witnessed a sharp surge in the usage of banking apps. This is good news for the fintech industry as this trend is projected to continue well into the post COVID-era.
The apps provide consumers with a convenient and efficient method to transact, which may result in greater loyal consumers after the pandemic has ended.
Push for greater digital transactions
The after-effects of the crisis are long-term and the recovery period long. Therefore, digital services including contactless payments, asset management, insurance, and mortgages will become the new normal. This uptick in usage will give a fillip to the government’s efforts to push for greater digitization of the economy.
Leveraging this consumer exposure and loyalty, governments around the globe may try to revive their weakened economies by further promoting digital transactions. They may look to incentivize the fintech sector through ease in regulations.
Meet changing consumer demands
One of the major impacts that the fintech sector will likely feel, include the rise in consumer demand for digital services. This will force traditional financial institutions to fast-track their digitization efforts. To achieve this goal, traditional banks may need to seek assistance from fintech firms. They may also need to lean on fintech firms to meet the changing consumer demands for digital products and services such as contactless payments and branchless banking. This will not only enable them to comply with the social distancing norms but also increase their reach to remote locations, attract and retain millennials, and reduce the operational costs.
Funds will be available after the pandemic
Fintech firms are more agile and better suited for the new work-from-home trend, which is being touted as a long-term phenomenon. However, funding remains a hurdle for many fintech startups that are forced to offer their services for free during the ongoing pandemic. The firms that can outlast the pandemic, however, will find venture funding available once markets are stable, feel the experts.
The article has been written by Neetu Katyal, Content and Marketing Consultant
She can be reached on LinkedIn.