COVID-19 has indeed taken the world by storm—physically, mentally, and virtually. With the so-called “new normal” setting in, all industries have been impacted pretty heavily. According to The Business Insider, 3.28 million Americans filed for unemployment in March. The World Trade Organization projects that global trade is expected to decline somewhere between 13 to 32 percent his year.
It’s no wonder that businesses, organizations, and individuals are concerned about the economy and their finances right now. The future remains uncertain and as a result, business owners are left with burning questions. What’s going to happen to our stock? How is the pandemic affecting the business bottom line? How can we keep financing our business?
It’s been a wake-up call for traditional companies who cannot answer these questions. However, this is where Fintech swoops in. And as Fintech apps continue to experience a surge in demand, it looks like the whole business landscape as we know it is about to radically transform.
Why FinTech continues to shine amidst COVID-19
The Devere Group says that there has been a 72 percent increase in fintech app usage in Europe alone. It’s not an isolated case either. Marketwatch documents that a gold-buying app saw a whopping 718 percent increase in traffic.
Here are a few of the many reasons why FinTech apps have surged in popularity lately:
There’s a rise in contactless transactions. Lockdowns and quarantines have affected how financial transactions are done. Banks have included disinfecting bills that come in. Of course, the safest way to transact is by avoiding all contact as much as possible. If the pandemic continues, there will surely be a large increase in the number of contactless payments to come. In fact, it may very well be part of the “new normal.” In fact, Raconteur chronicles that 27 percent of small businesses in the US have already reported an increase in using contactless payment services.
- There are community-focused initiatives. It’s no secret that this pandemic has put a huge dent in the economy. Thanks to FinTech startups, there are communities who can receive support in the form of waived transaction fees, financial advice, and even donations for hospitals.
- Individuals and SMEs that lack collateral can be served. Fintech apps are able to cater to customers who are usually ignored by traditional banks. Most SMEs have limited finances and resources, hindering them from being approved for banking loans. The pandemic has seen many SMEs struggle to keep a sustainable cash flow, and fintech apps have stepped in to assist SMEs in need.
Example of popular FinTech apps today
Even though there are various FinTech apps with different features, these are three of the more interesting ones during this quarantine season.
DeVere Group Apps
The DeVere group is known to be one of the FinTech leaders on a global landscape. For the past three years, they’ve rolled out a nifty suite of FinTech apps. This includes deVere Vault for e-money and multi-currency prepaid cards; deVere Crypto for cryptocurrency transactions, deVere Core for investment monitoring, and deVere Catalyst for globally diversified funds. With its vast array of alternatives, it’s easy to see why the deVere apps are surging in popularity.
Glint Pay Services
This gold-buying app keeps breaking records every day as its users continue purchasing gold for up to £2,739. This FinTech app allows users to buy and sell and spend their physical gold right away. It’s interesting to note that this FinTech app’s activity is high during the looming recession. This can be attributed to users who are aiming for financial stability in case the recession pushes through.
With LuLu Money, the user can send money through the app—a very important factor during these pressing times. With LuLu’s other available services, global transactions can be made with less hassle.
The world is changing, and it’s changing fast. The economy is declining today, prompting businesses to be innovative and think of creative ways to sustain themselves. FinTech is a tool that can open up many doors for your business operations.
In the long-run, investing in FinTech today will give you an easier transaction process, data-driven risk evaluation, faster loan applications, and essentially a more affordable yet more efficient portfolio of financial experiences.
The end of the COVID-19 pandemic remains unclear, but the potential of FinTech is set in stone. It’s shaping the future of business as early as now—step up to the plate so you don’t get left behind.