Fintech Capital Markets Report - August 2020 | GBKSOFT Analysis
The global crisis is still keeping everyone on their toes, creating uncertainty in many areas, particularly the fintech industry.
Now we can observe how the economy is moving from a rapid response to problems into a recovery phase. COVID-19 has brought not only imbalances but also new opportunities for some fintech. So after the "stay at home" recommendation, there has been significant growth in digital financial services and e-commerce. For example, according to Payments Cards & Mobile, the average weekly use of fintech apps in the United States grew by 20% between March 1, 2020, and June 1, 2020, which coincides with the onset of the pandemic.
Opportunities for a successful future Fintech
A fintech company has to rethink its business models and adapt to the new reality. As we mentioned above, social distancing contributes to the more frequent use of Internet channels by customers, especially mobile ones, to manage their finances.
Expanding affiliate strategies
Fintech companies seek to partner with financial institutions with sufficient capital and developed infrastructure but lack useful digital tools to interact with customers.
For example, Blend's digital mortgage software provider claims a significant increase in demand for its product from bulls that do not have such a solution.
Don't forget about partnerships with non-financial firms such as retailers, such as Walmart, with partnerships with PayPal and Green Dot. 27.
Financial inclusion programs
The economic crisis demonstrates the importance of working with people who are currently outside the financial system. There are 1.7 billion non-banking individuals worldwide (the World Bank).
It is also worth mentioning that 6.5% of US households still do not use banking services. Do not forget what opportunities for fintech companies incur unexpected costs for clients, namely, the provision of online loans.
All this uncertainty, interruptions in the chain of regulations and other problems put intense pressure on enterprises, and fintech is no exception. Most of the companies in this sector are already taking active measures and adapting their products and services to meet customers' needs who are fighting the pandemic themselves. Moreover, given their differentiated capabilities, namely adaptability and innovation, many fintech companies are well-positioned to weather the crisis and make a significant contribution to the development of the industry.
Each crisis teaches us a lesson, and the main thing is to draw the right conclusions. If your business is also experiencing difficulties, we offer you a free consultation on how a Apps can help your business to stay afloat. Please feel free to contact us https://gbksoft.com/
Alexandra Rostovtseva - CTO at GBKSOFT