Finance Industry and the Future of Fintech post COVID-19
We’re living in an era of advanced technology, becoming increasingly reliant on our devices to simplify the daily grind, and looking to technological solutions more and more to ease the burden of mundane tasks.
Even before the pandemic hit most countries, fintech was on a positive growth trajectory, but since then, the finance sector has been changing. In fact, 57% of consumers now prefer to use online banking tools and interact digitally with their finances in the wake of the pandemic; to compare, less than half (49%) of consumers relied on such technology prior to the pandemic.
Thanks to the rise of financial technology, it’s safe to say that the finance sector has seen a great deal of change over the previous 20 years. Put simply, the rise of fintech has made it easier than ever for consumers to research, compare, invest and manage their finances than ever before.
Possibly the most significant change for consumers in recent years has come in the form of digital banking. Even before the pandemic, consumers had increasingly turned to online and mobile platforms to manage their accounts, benefiting from the streamlined services that these apps have to offer, allowing consumers to keep a careful eye on their spending habits, and offering an additional level of security, making it easier to identify fraudulent activity.
It’s very likely that technology will continue to drive progress within the financial services sector, providing consumers with more and more choices when it comes to their financial management. It’s unclear at the moment when these new advances will come into play, but with so much disruption in the industry, it’s becoming increasingly clear that the finance sector is primed for further personalization and consumer empowerment. Long gone are the days where one-size-fits-all advice is the industry standard and, as of today, one in two consumers already expect a personalized experience when they receive financial guidance. With such rapid developments in technology, these advancements are undoubtedly just on the horizon.
To stay relevant even in a post-pandemic era, businesses need to re-evaluate their models and goals, diversify to include essential services and items, if needed, localize their offerings based on demographics and evolving consumer behavior, as well as leverage emerging technologies such as Artificial Intelligence, Machine Learning, Natural Language Processing and Deep Learning (AI, ML, NLP & DL) to eliminate redundancy and automate operations for a faster turnaround.
Businesses also need to be agile and listen to consumer feedback closely to gain their trust and loyalty. At severe times like these, strategic partnerships can help keep businesses afloat while buying some time to realign operations.
Now that the world has realized the true potential of digital transformation, greater business opportunities will emerge for fintech in digital payments. In the context of collaboration, trust in the financial technology ecosystem has brought fintech players and incumbents together to build mobile-first banking solutions. Advancements in technology, contactless payments and changes in regulatory policies will also determine the future of fintech.
With consumers becoming more empowered with easy access to a plethora of personalized financial options, the future certainly looks bright for the finance sector.
We invite you to learn more about SAP Banking and their offerings to the Digital Transformation landscape. For more information please visit https://www.sap.com/sea/industries/banking.html or our website at www.dycsi.net
About the Author
Joe Torres is the Founder and CEO of DYCSI Inc. He has over two decades of senior management experience in the IT and financial services industry with institutions such as Nacional Monte de Piedad and Banco Actinver.
Joe has seen success with roles in Technology Evolution, Bank Operations, Treasury and Risk Management, Contract and Lease Management and Money Laundry Prevention Systems, Banking Tellers and Emerging Technologies to Deliver Business Value.