We are living through an exceptional moment which many people define as “the largest Black Swan event of our lifetimes.” There is no question that 2020 will be challenging for fintechs to navigate. However, given the nature of this crisis, which is causing people all over the globe to reconsider their daily routines and movements, prosperous times remain ahead post crisis as financial institutions are pressured to evolve to meet new customer demands and behaviors.
In recent years, banks have been turning to Fintechs to introduce new digital and data-driven tools that have transformed how they do business. From RPA in the back office to automated recruiting to customer-facing technology, Fintechs have pushed innovation upon banks. Now, these new tools will not merely be nice-to-have add-ons, but integral to any bank’s strategy in the post-Covid-19 world. Banks that do not radically restructure the way they work and deliver their products to customers risk being obsolete in a future where people are not moving as freely as before.
As far as this crisis is concerned, the light at the end of tunnel has not yet appeared. These predictions were made based on a positive, best-case scenario where things get back to some type of “normal” in 2-3 months’ time. Governments are declaring stimulus packages one after another and pouring almost unlimited liquidity with very low interest rates to reduce the effects. Fintechs and their banking partners can use this event to create new business and foster existing lines of business.
Efma senior advisor Gorkem Cokcetin has divided the fintech fields into three dimensions: businesses (primarily SMEs), households, and operations and has taken a closer look at some of the coming developments in each area.
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Keywords : Innovation , Bank Products & Services , Covid-19 , Fintech