The fintech industry has emerged as a sign of a positive growth, even in the face of an unprecedented economic downturn. From setting up alternative payment channels to reshaping lending solutions, fintechs are pivoting their businesses to meet the needs of customers.
Being digital-first, fintechs have been better placed to serve consumers in today’s high-on-demand market. The large opinion is that customers will continue to go the digital way even after the pandemic is over.
Resilience will be key to continued sustenance and growth of fintechs. Here are some key measures they can adopt to stay relevant, augment recovery and become adaptable during and beyond the crisis.
The pandemic has unlocked many digital opportunities to deliver holistic services to meet customers’ financial needs. For example, catering to small business owners. Fintechs can facilitate loans through digital lending platforms and empower low income communities & small businesses.
Verticals like investment, wealth management, insurance etc. will witness immense growth as fintechs bring these services to the masses in an easily accessible manner. This will encourage stronger financial planning among users and help them achieve financial independence.
Social distancing is accelerating customers’ use of online channels - especially mobile - to view and manage their finances. Digitally savvy consumers are now expanding their horizons by trusting less established brands in exchange for a better experience.
Partnerships between banks and fintechs have been in discussion for a while now. However, the importance of these partnerships cannot be stressed upon further. Fintechs can build their credibility among customers by collaborating with banks to help digitise their offerings. Banks can leverage fintech capabilities to offer mobile-first experiences to their consumers. Hence, a win-win situation for both parties.
Unlike incumbents, fintechs are more technologically equipped to tackle any kind of disruption, and have responded to changes relatively faster. During the demonetisation in 2017, fintechs were able to swiftly come to the rescue of customers with digital payment offerings. Similarly, fintechs have also been able to cope with changing RBI regulations and deliver digital-first services.
However, like the pandemic has demonstrated change is not predictable. To ensure continued sustainability, fintechs need to build on agile API-based modular infrastructure that can help them quickly adapt to change. Fintechs can readily test, integrate and modify their products before rolling them out to their customers -- all this, in real time. These API platforms also take care of regulatory compliance, helping fintechs easily adapt to changing regulations, policies and trends.
Agility, adaptability and a digital-first mindset is in the DNA of fintechs. These capabilities, coupled with the right infrastructure can also empower fintechs to function effectively and play a positive role in the times to come.
The fintech sector needs to focus its energies on innovation and adjust its offerings to adapt, sustain and grow in diverse conditions. Building on a unified tech platform can help fintechs design and launch mobile-first products that can be modified in real time. These unified tech platforms come with pre-built integrations that seamlessly adapt to changing regulatory guidelines and data security standards.
As fintechs invest in new technologies to meet financial challenges, they will continue to emerge successful in eliminating inefficiencies with innovative solutions.