Whitepaper: Fintech in a Post COVID World
/The global fintech industry is revolutionizing how customers interacted with their financial institutions. Digital challenger banks are radically reshaping traditional financial interactions. Incumbent banking platforms face an emerging threat that few had foreseen with mobile and digital platforms overshadowing in-branch transactions. Government regulations like the PSD2, first introduced in Europe, spurred the creation of new fintech platforms catering to a customer’s individual requirements and needs.
COVID-19 forced global industries to hit the pause button on growth and expansion, while the future of some is questionable at best. With a large portion of the world under social isolation and quarantine, businesses are now beginning to adapt to the new normal.
However, people need to be able to access financial services. Digital access was a must, through a secure and convenient interface that is more intuitive than frustrating.
Enter fintech.
Neo banks have been quick to respond to the crisis, altering strategies to increase financial inclusions and delivery of government financial stimuli. Their technology platforms were designed digital, giving them the advantage of the sudden global shift. Unfortunately, fintech companies, particularly those in the earlier stages of operations, need funding to expand and build out their platforms. International start-up investments have fallen, with an uncertain future being to blame but also a shift in focus for most venture capital funds.
Enter traditional banks.
With changing a dynamic consumer mindset and evolving market requirements, incumbent banks have an opportunity to invest, partner, or collaborate with the platforms taking away their market share. COVID has accelerated the acceptance of digital financial products and services. While incumbents can develop their own solutions, it may be simpler and cheaper to identify partners with a demonstrated ability to execute and scale.
Fintech in a Post COVID World covers the impact of this unprecedented modern-day pandemic on emerging digital solutions and how traditional as well as digital financial services can persevere together.