Covid-19 has brought with it a series of changes at many levels globally; one of those changes is the case of Fintech companies concerning their consumers, which has left several lessons, one of these important lessons of the year 2020 was relative to resilience, not only about the human spirit but also with how people managed to overcome adversity.
In March 2020, a nationwide lockdown forced consumers to make use of online resources. In general, companies and industries suddenly decided to digitize everything they could to remain competitive instead of opting for the definitive closure. In this way, financial technology played a large role in this digital transformation, which caused a sudden increase in people using online services, which helped the sector grow rapidly. Here we share some lessons that the pandemic brought to the sector:
Debt is not bad
The pandemic changed people’s perception of the debt, forcing many users to change the idea that the debt was “bad” but necessary to know how to manage it properly. In this way, many people, businesses and companies, tried for the first time to apply for loans, especially when they realized that this was an option to grow, even in the midst of a pandemic.
Positive regulatory changes
Financial regulators were forced to implement policy changes in all aspects to smooth processes and requirements in times of crisis. An example of these changes concerns accepting insurance claims in electronic copy form (previously, it was only a hard copy or physical copy). Likewise, regulators intensified financial supervision on their online platforms, making it possible to sanction offenders who did not comply with basic regulations.
The banks vs Fintech myth
Before the pandemic, many banks looked at Fintech with suspicion; however, during the pandemic, several banks had to modernize their platforms for which they used the services of many Fintech for this purpose, collaborating and developing different tools, platforms, and financial/banking services on-line. Fintech companies assumed more and more prominence in granting loans, while banks realized that Fintech can contribute new segments and product lines for them. Fintech companies are optimistic around the year 2021 in terms of growth. However, it would be interesting to see how the sector implements the lessons that the pandemic left last year and what innovations those lessons will bring.
What do you think about this topic? What other learning do you think Fintech had?
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