India ranks second for having the largest number of FinTech companies globally with the United...
Fintech has been one word that has been doing the rounds in the world of finance. It has shaped a number of areas in finance such as investments, insurance, or financial planning. This article sheds light on how the relevance of Fintech post-COVID-19 will be maintained.
During this time of the pandemic, we have seen how the production or service companies adjusted themselves to adapt to the changes that they forced to adopt. Delivery, alcoholic beverages, and cosmetic companies have set up sanitizer production units, and clothing manufacturers have started sewing face masks. So, Fintechs in India may also follow the same trend and merge into non-related fields in order to develop new products and services linked with the new demands.
We may see changes from such merging of fintech into non-related fields. We may notice fintech apps becoming marketplaces with not just financial instruments but also retail products. Consumers would be able to do various things from one account.
The most significant advantage of fintech over banks is the convenience that the former brings to the customers. Everything can be done at the comfort of your homes with just a few clicks. It doesn’t require you to go somewhere and wait there for long hours to get your work done. Banks have realized that if they are to catch up with the latest technologies, then they may require collaborating with the best. It will benefit the customers as well because they will get new services and products and they will see an improvement in the existing facilities.
Collaboration between banks and fintech would mean new opportunities for partnerships and the creation of new products. In the times to come, we may see banks focussing on institutional customers instead of end-users.
When we see businesses transition to online trading in this pandemic situation, we may jump to a conclusion saying it is a temporary transition. However, it may not be incorrect to presume that this may be the new normal going forward as buying things online is considered more convenient and time-saving.
This would create new niches for internet acquiring and new business opportunities for fintech. It would be a win-win situation for both customers as well as for fintech. The Covid-19 pandemic could be a turning point for many fintech companies.
Fintech is expected to play an even more crucial role after COVID-19 compared to what it is doing just now. Fintech would require adapting to new world order. In this segment, we shall discuss the things that fintech must focus on to stay relevant.
It may take some time before people start revisiting their bank branches, and most of the financial transactions are expected to be done online. For customers who are known to have face to face, interactions would feel more comfortable if they know that there is an actual face behind the virtual things that they are using. It will be even more relevant when the transaction comprises of a significant amount.
Fintechs must take steps in order to build customer trust and make the customers engage with them. Things like video conferencing etc. can enable customers to communicate with banks, insurance companies etc.
One may have an assumption that fintech products would only be used by the so-called “millennials” or the young generation, but the pandemic has caused even the senior citizens to use fintech products. Senior citizens are the most vulnerable to this virus, so they require technology in order to manage their finances and facilitate transactions without going out of their homes. So fintech post covid-19 will require adapting their products to the needs of senior citizens as well. We may see that happen where more features are developed catering to the needs of every group of people.
The pandemic has caused people to use mobile-based apps to do their daily businesses of life. Be it buying groceries, consulting physician etc. Apps that are less user friendly may not survive for too long. Therefore fintechs require having great products and have apps that provide an excellent user interface, thereby providing a great customer experience.
The Pandemic has caused people to do transactions digitally because it doesn’t require going out in the crowd and saves a lot of time. However, increased digitalization means increased data risks. The main priority of the customers would be to have their sensitive information and data safe. Fintechs would require focusing on security features like never before and manage the data of customers safely.
Fintech post covid-19 would require going beyond the traditional way of communication like SMS and e-mails etc. Social media can be an effective way for communication, but other channels like chatbots, push notifications, and other features can really assist the customers in resolving their queries and addressing their grievances.