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Fintech App Development: How Fintech can get Opportunities from COVID 19
- Emorphis Technologies
- Jul 13, 2020
- 4 min read
As COVID-19 sweeps the world and disrupts the way we used to interact and communicate business, innovative technologies help by rendering solutions to maintain social distancing and prevent service disruptions. We all know the negative effect of COVID 19 all over the world in the industries from small shopkeepers to big well-established companies everyone is affected but despite its negative effects, some industries’ are there which have got benefit from it. Yes, companies like Zoom generate lots of revenue during this COVID 19.
Like other sectors, Fintech has a unique capability to extend financial inclusion, improve the daily lives of people. While the virus may have a negative effect on us but it hasn’t halted our progress or our commitment to this cause, which is more important. According to the report, the Covid-19 outbreak has led to a slump in digital payment transactions by 30%.
However, the risk of transmission of COVID19 still persists through the transmission of cash from person to person. While banks have been appealing customers to go digital for transactions with many online banking portals. These online banking portals provide valuables with real-time access to their cash positions and E-signing documents when physical movement is restricted, is now a new normal.
Fintech app development companies have been enjoying the rapidly increasing demand of users making use of Fintech applications. Due to COVID19, there is a sudden shift in the world to a variety of factors with the worldwide lockdown of all but the most essentials industries are forcing consumers to take their transactions online.
Thus with all of that in mind, we take a look at how Fintech can benefit from COVID19.
1. Social Distancing for the Unseen Future: When social distancing is the only way to break the chain of COVID19, governments are ordering their citizens to practice self-quarantine and stay at home all the time with the exceptions of emergencies. Due to this many companies allowed their employees to work from home and the majority of the world operate online, Fintech companies have found them into important positions that allow them to leverage existing technology.
For instance, In place of heading local banks, customers have turned to Fintech apps for their banking activities. As we know, now everyone is using Smartphones with a high speed internet connection which makes sense for Fintech companies to render transferring, paying, and receiving funds activities with just a touch of smartphones without ever having to leave the comfort of home.
E-commerce companies have been one of the first adopters of Fintech applications as the industries saw an opportunity to grow. Now in the pandemic at the time of lockdown, even the non- interested users of technology have come to realize that Fintech is likely to be a new norm.
2. A Cashless Post-COVID Society: Primary infections vectors are persons who unknowingly come to contact with a COVID infected person. This is the reason healthcare organizations like WHO suggested the use of Facemask while emphasizing the need for regular and thorough hand washing.
Given that cash regularly comes into contact with millions of people’s hands on a daily basis, it should come as no surprise that coins, paper money, and other legal tender have been described as being dirtier than a toilet. From bacteria to viruses, it is recommended to avoid handling any form of cash at this point where a single touch of an infected person causes danger.
In an order to break the chain of COVID19, we should minimize the contact as much as possible. Hence this is why fintech payment apps are set to exponentially grow in the post-pandemic economy.There are so many payment apps like Gpay, Phone pay which allows for transactions to be made without any extra charge. In a country like Africa with severely limited financial industries, digital wallets and payments apps have quietly grown over the years thanks to their convenience and speed.
3. Integration with Fintech Companies — Still, most of the countries would have entered into more than 10 weeks of quarantine and the strain is beginning to show. Businesses have been forced to halt their operations or develop new ways of working around this quarantine.
With remote working and video conferencing now becoming the new norm, even banks and other financial institutions have been forced to reevaluate their ways of working. Prior to the lockdown, banks have been forced to withstand increased competition from fintech companies intruding into their territory.
Over the past few years, many fintech has built deep relationships with banks, based on API integration with banks’ payment systems and balance sheets.
4. Increasing demand forRobo Advisory: Another benefit from these crises will be Robo-advisory, which is reforming the landscape of wealth advisory services. These Robo advisors provide no-touch and no-touch investment solutions, which can deliver more deeply analytics back to the users. Robo advisors are the next level in the evaluation of asset management and financial advice.
The growth of Robo advisory services enables low-cost services, scalability, cognitive advice, and next-generation user experience. We already are seeing significant activities, which also include the integration of AI into Robo-advisory.
Closure: Whilst there is a lot of economic and personal pain being caused by the current pandemic, with months of quarantine ahead, with both companies and households in survival mode, there will eventually be an end to the crisis. History has shown us this with previous such crises over more than a century.
The rapidly increasing online activity and digital services, as a result, will accelerate what was already trending. This indicates well for Fintech app development companies that have genuine differentiators and readiness of services in the digital market in the infrastructure, cashless payments, and Robo-advisory space.
The need for financial inclusion will be greater than ever before and innovative use of digital assets will help further facilitate this.
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