Covid-19 pandemic is a big hit to the world economy. One third of the population is locked and there exists an uncertainty. Social distancing is the way to keep the epidemic away and governments are ensuring it. Like every other industry, Fintech is also facing challenges during this time but Fintech can seize new opportunities in coming years.
Post Covid-19, a new era
Covid-19 is a lesson and now the mankind is becoming alert in their everyday activities. Since the vaccination for this virus has not been found, its threat exists in the world. People become contactless and ensure social distancing. Fintech helps to make contact less payments and avoid the need for physical touch and presence. During the pandemic, the use of digital transaction increased and most of the International authorities and central banks asked people to go for contact less payments to avoid the spread of epidemic through currency notes and physical touch.
Change in behavioural patterns
Lockdown changes the behavioural pattern of the man. Consumers prefer contactless purchases and payments to avoid the spread. Work from home and Social distancing are now becoming buzzwords. There will be a substantial change in the way which businesses interact with customers. World is adapting to the digital lifestyle and expecting new experiences. Use of E-commerce and OTT platforms increased digital payments.
Fintech companies can grow in the coming years by providing good services. Reports showed that the use of fintech apps have been increased in the Europe during the lockdown by about 72 %. Similar figures can be seen in other markets also. It was found that India has the highest Fintech adoption rate of 87% comparing to global average of 64%.
Innovation and changes
Fintech companies are now not mere digital payment platforms. Their scope and applications are changing with time. They are now focusing on providing personal loans and insurances. They are making the transactions by avoiding third parties and helps in connecting buyers and suppliers.
In India, Paytm joined with Reliance General Insurance and PhonePe joined with Bajaj Allianz General Insurance and launched insurance policies which can be purchased through the respective digital wallet apps. Zaggle a fintech company introduced virtual cards in 2018 for payment services. Along with this, banks are also collaborating with social media platforms and start ups to provide services. Large tech companies are also focusing on financial technology, Google pay, Amazon pay, Apple pay are examples.
Financial technology has bright opportunities in the near future. Technology companies are focusing on this field and so the competition rises as the opportunity rises. AI, Blockchain and 5G connectivity will influence it. In future these online transactions and digital wallet facilities become necessities.
