There has been a technological revolution in recent years. So many new and creative technologies are being introduced to help us cope with the many complexities of our lives. For many people, finances have always been a difficult issue. This is why financial institutions like banks make such large profits and have so many staff. FinTech stands for financial technology in a nutshell. These are automated softwares and platforms designed to provide financial services to clients in a secure and productive manner. They are creative and revolutionary resources that have been developed to improve the lives of end users as well as the businesses and industries that will benefit from them. FinTech stands for financial technology.
Several FinTechs in the UK have also stepped up their response to the spread of the coronavirus, with at least one of them practicing for a worst-case scenario. Curve closed all of its facilities earlier this month and arranged a “remote evaluation day” to ensure that its services would remain operational if the enterprise was forced to implement a compulsory work-from-home policy. Although the FinTech ecosystem has been innovative for the industry, demand for fintech services is influenced by global economic activity. According to McKinsey research, transactional services and revenues from payments will decline as spending decreases.
Covid-19, on the other hand, has shown a detrimental effect on smaller Fintech firms. Some businesses fail due to a lack of funding, while others are killed off when investors seek unreasonable investment terms. This would have a longer-term effect than the time it takes for the economy to recover.
FinTech businesses are becoming “Covid Proof”. With no face to face transactions, the ability to open accounts purely on line, and the facility to send and receive money automatically, this is a covid proof way of working with money. Big banks are changing the way that they operate and becoming more FinTech focused. Small digital banks are cropping up, offering services to the under-banked population of the world, so that cash no longer must be kept under the mattress.
FinTech is making money safer and adapting to the world in the New Normal.