coronavirus image
May 16, 2020
Matt High

Will COVID-19 create new opportunities for fintechs?

According to Deloitte, the COVID-19 pandemic may create new opportunities for some fintechs as the broader economy shifts from 'respond' to 'recover'


<h3>According to Deloitte, the COVID-19 pandemic may create new opportunities for some fintechs as the broader economy shifts from 'respond' to 'recover'</h3>

<p>In the new report,&nbsp;<a href="… COVID-19: New opportunities for fintech companies</em></a>, Deloitte explains that many fintechs, like the wider financial services sector, have "gone into overdrive to respond to the crisis".</p>

<p>These companies, as well as other innovators such as insurtechs and proptechs, have focused on shoring up their capital and funding from investors and lenders says <a href="//">Deloitte</a>.&nbsp;</p&gt;

<p>They have also implemented cost-saving measures such as workforce reduction. There remains, however, uncertainty with fintechs "under stress on a number of fronts", Deloitte notes.</p>

<h4>Innovation, relief and recovery</h4>

<p>According to Deloitte, fintechs have several unique advantages that both allow them to better position the proposition in the current environment, and be prepared to exploit future opportunities.</p>

<p>They are, for example, adept and harnessing and using data, and focused on the provision of a seamless, customer-centric digital experience.&nbsp;</p>

<p>In addition, says Deloitte, the startup nature of many fintechs means they are unburdened by legacy technology or strategies. This allows for the building of platforms using a cloud-native approach that can take advantage of API ecosystems.</p>

<p>Fintechs are also better geared towards collaboration - using innovative tools and technologies to do - and more comfortable in creating lasting partnerships with others in the sector.</p>

<p dir="ltr"><strong>SEE MORE:</strong></p>

<li dir="ltr">
<p dir="ltr"><a href="… Santander launches PagoFX money transfer app</a></p>
<li dir="ltr">
<p dir="ltr"><a href="… Chartered bans Zoom and Google Hangouts</a></p>
<li dir="ltr">
<p dir="ltr"><a href="… 2030 and the future of banking</a></p>
<li dir="ltr">
<p dir="ltr"><a href="">R… the latest edition of FinTech Magazine, here</a></p>

<h4>Future opportunities</h4>

<p>According to Deloitte, the these unique advantages may allow fintechs to find new opportunities in the long term.</p>

<p>The report states that fintech companies "may be forced to reexamine their mission and business models after COVID-19", adding that one key question may revolve around how to leverage existing and newly developed assets.</p>

<p>Social distancing, for example, lends itself to the mobile-first strategy of the many challenger and neobanks entering the market.&nbsp;</p>

<p>Similarly, says Deloitte, another outcome of COVID-19 may be the acceleration of partnerships with financial institutions that offer benefits such as capital and infrastructure, but increasingly seek innovative digital solutions.</p>

<p>The report also notes "huge potential in holistic financial services that integrate consumers' financial needs and behaviours, such as healthcare". Opportunities may also arise to partner&nbsp;with big technology firms on a global scale.&nbsp;</p>

<p>Other areas that fintechs may exploit in the future include:</p>

<li>Playing an important role in the greater financial inclusion that COVID-19 may bring, including using a collaborative ecosystem to distribute benefits to the vulnerable</li>
<li>Aiding in the rapid disbursement of government relief funds</li>
<li>Empowering or better serving the gig economy, which is traditionally underserved by banks</li>
<li>Harnessing the Internet of Things to improve payments</li>

<p><strong>Read Deloitte's full report <a href="…;

<p><strong>Read our report on Deloitte's future of banking report <a href="…;


<p dir="ltr"><em>For more information on all topics for FinTech, please take a look at the latest edition of<a href="">&… href="">F… magazine.</a></em></p>

<p dir="ltr"><em>Follow us on&nbsp;<a href="">LinkedIn</a>&nbsp;and… href="">Twitter</a>.</em></p&gt;


Share article