How COVID-19 is Bringing Mainstream Adoption to FinTech
While lockdown measures led to the closure of many businesses, the fintech sector has continued to thrive. This, according to respondents from a recent webinar, is due to its adaptability and innovation, even as larger firms are finding their way into the space.
Fintech Growth in Recent Times
According to a May 18 report, the fintech industry is bound to evolve and grow in the next few years despite the COVID-19 outbreak. Recently, a webinar was held by ParagonEX Dynamic, a company that operates in the fintech industry, and it posed several questions regarding the future of fintech.
The discussions suggested that the industry has been growing for several years now. However, the outbreak of COVID-19 has led to an accelerated adoption of fintech. This is because lockdown measures and their gradual lifting means that businesses are moving their services to the digital world.
Fintech firms have seen more acceptance around the globe and especially in countries with large unbanked populations such as Brazil. This angle of social inclusion has also become more apparent during lockdown times. Businesses had to quickly adapt to a new way of life and offer customers virtual alternatives in days rather than months.
According to one participant at the webinar, fintech has always been a flexible industry, and this proved useful when businesses were forced to switch to working from home. Fintech companies, according to another respondent, have to maintain their adaptability in the business world if they are to survive long-term. This will include integrating multiple fintech services on a single platform to save time and effort.
Fintech is Getting More Mainstream Attention
The growth and innovation of fintech firms have not gone unnoticed by the mainstream as they have seen more acceptance. Cryptocurrency firms, once shunned by large financial institutions, are now receiving banking services. This move goes a long way toward ensuring the adoption and acceptance of the industry.
Besides acceptance, there is a probability that fintech will cause disruption in the current business ecosystem. According to the PwC Global FinTech Survey, a quarter of respondents stated a risk of their businesses being lost to fintech firms. The report also showed that up to 28% of banking and payments businesses and 22% of insurance, asset management, and wealth management businesses were at risk by 2020.
Even major companies like Google appear to be catching on, as it was reported that they will be launching their Google Card in 2020. This is after the announcement of their Google checking account code called Cache in 2019. As Google transitions in fintech, they have teamed up with Lloyds Banking Group for a five-year deal announced in March 2020.
These developments simply go to show that fintech is here to stay. The current outbreak has only shown the need for its innovation and adaptability. With its growing acceptance and industry giants entering the sector, only time will tell what will come next.
Do you think firms like Google can thrive in the fintech space? Is fintech truly the next big thing? Let us know.