As most industries battle through the COVID-19 monetary aftermath, a report from VC firm Finch Capital presents some light at the end of the tunnel for the FinTech sector. The report recommends that the emergency could at last wind up profiting the business by bolstering the race to digitisation.
The coronavirus pandemic has affected all aspects of the economy, including the fintech sector. However, the report says that the fintech firms will weather a crisis circumstance until the third quarter and then endure a 12 to 18-month recuperation period.
However, for those that make it through, there will be impressive opportunities, as COVID-19 is all set to reform how society makes it through the future, making ‘digital-only’ the new normal for Fintech. This increasing speed will trigger a “Big Pocket” fight among competitors to win the online clientele, leading many financial establishments to turn to tech organizations as opposed to in-house choices to quicken digital transformation. In such a scenario, the final winners will undoubtedly be the consumers and FinTech platforms as well as firms that have adopted a digital approach where in-person interaction still holds importance.
Another factor to consider is that technology makes operations and development a lot simpler for Fintech organisations as the expense of the administration decreases. It also takes into account better usage of accessible resources and labour in less time and efforts, offering better types of assistance and business forms. Adopting technology is still a battle for smaller Fintech organisations because of significantly higher costs. But the increased availability of Cloud and SaaS-based models has made it simpler. Today, innovative technological solutions are effectively accessible on-request and at moderate costs.
NBFCs should be on their toes and continually draw up a large group of techniques to reach their target group. They have to think past the current home loans, vehicle loans and personal loans and need to be persistent to bring out innovative and custom-made products. Technology will assist with accomplishing their targets of personalization and adaptability that the clientele values. Digitisation will also permit Fintechs organisations to provide tailor-made products and customised services. They can initiate targeted computerized messages, give personalized access to clients and offer progressively productive assistance.
It is important to remember that the new age customer is smart and with expanding information and choices, is more in-sync and aware about products available to match his needs specifically. The pandemic has effectively presented an opportunity for moving towards more digital innovations for all businesses. This could lead to fiercer competition and definitely more business!