The Coronavirus of today, also known as the Covid-19, is having a significant effect globally. Although the approaches and severity focused on dealing with it vary as different governments come to grips with the pandemic, there is one clear fact: we will get through this. Now the big question is how- when the disruptions in our daily lives and businesses keep growing?
In times like this, the preservation of essential services and functions is critical. The Financial services fall squarely into their categories. Talking about the payment, lending, and the trade that are the livelihood of the global economy, even in challenging times like this. The good news remains that the sector has always adapted to different working ways, including this – the big question is, “How fast?” With that in mind, we’ll be providing a list of fintech trend you should watch out for, that will emerge as a result of these changes in reaction to the coronavirus:
THE USE OF DIGITAL PAYMENT WILL BE ON THE RISE
In this current state and period where social distancing is advised, and also with the recommendation of the World Health Organization in the bid to reduce the use of cash, the digital payment option will rise higher than usual. For now, the fintech trend will be seen mainly in the banking population. As for the others that lack the sufficient amount to make the bank account worthwhile, the recent pandemic will likely not be enough drivers for them to adopt it.
THE BLOCKCHAIN GROWTH
The blockchain technology keeps turning the financial world towards a brighter future of finance. With the rise in the number of Asian companies focusing on cryptocurrency, the potential of blockchain is on a daily rise. This is one trend we should watch out for. Due to the legal constraint involved, a lot of motivations in this field have decided to wait in the wings.
INCREASE IN THE USE OF DIGITAL CHANNELS
With a lot of countries going into lockdowns, those in search of information as per their accounts and other banking products will focus on the use of digital channels even down to telephones.
GROWTH IN THE USE OF CHATBOTS AND ARTIFICIAL INTELLIGENCE.
The growth in the use of the digital channel brings about the need to manage interactions and communicate effectively. The efficient use of chatbot will greatly aid in making sure that customers and prospects have the needed information through the most cost-effective way and channel.
THE RISE OF REMOTE INTERACTION WILL INCREASE TELECONFERENCING AND VIDEO-CONFERENCE
One of the major reason why face to face meeting is necessary is to build trust. With the restriction in business travels, if not restricted until further notice, the use of teleconferencing will help maintain and even improve the relationship with their customers. Also, banks will need to make sure that they have access to the required amount of bandwidth to support their video conferencing, and also a virtual private network to help employers stay effective, in case they need or have to work from home.
DATA PROJECT WILL INCREASE AS A RESULT OF CLOUD-BASED SERVICE
Regardless of the environment, the financial industry will keep being on the lookout for ways to improve service, shorten time to market, increase revenue, and decrease cost. Making better use of data will unlock important insights about customer and bank needs while continuing to pursue a cloud agenda will give banks access to the offerings and processing capacity, they need to modernize their business.
INCREASE IN THE USE OF APIs
Although the Application program Interface (API) is not something new, it is mostly moved towards open banks, and this is driving banks to make them available to potential partners and clients. As different concepts in the Finance industry increases, we expect to see more of them in the active use and publication of the APIs to help them access and provide the services that will move their relevance with clients.
BRANCH ACCESS WILL CHANGE
In the bid to protect employees and clients, some banks or other financial institutions will close their branches or change their operation hours, or even limit the number of people that can be in a branch at a certain time. Additionally, some banks may take a cue from the supermarkets by having certain hours of the day devoted to more at-risk populations like the elderly and the immune-compromised.
Transformation is hard because people overestimate the value of what they have and underestimate the value of what they may gain by giving that up. While many financial organizations are continuing to adopt new technology to enhance operations and improve customer service, these eight trends will provide exciting avenues for future finance innovation. However, as with any turbulent times, we have always come out stronger and better on the other side.