Fintechs in times of Coronavirus

In these uncertain times, technological platforms known as Fintechs are an alternative for the personal economy

In light of  the current global pandemic situation and the havoc it is wreaking on the stock markets, experts agree on the importance of seeking alternatives to traditional banking that can quickly adapt to the effects and impacts that the COVID-19 is having on the economy.

A lot has been said on the matter that the supply chain on essential goods cannot come to a halt, otherwise the very same people we are trying to protect from the pandemic will not be able to make it through. What is not so intuitive to grasp is that capital has become an essential good of itself, fueling all that is necessary for human activity.

But being a first necessity makes it all the more important for innovation to improve upon. Fintechs like Iban Wallet are constantly adapting to the needs of users by implementing solutions in a short time, which is not possible for traditional banking. In addition, they are based on simple processes, easily accessible applications and direct contact with their clients through digital and traditional channels alike. Their agile, cloud-based system also makes it possible for the whole of their operations to be up and running despite the necessity of the distance between their teams.

Many of the effects that are now being felt are, after all, a consequence of our ever-growing interconnectedness. As we keep depending on one another, regardless of physical distance, having systems in place that bypass the need to be bound to one place seems key to make the network more resilient to unplanned occurrences. If not, the multiple points of complexity in the network are more likely to become multiple points of failure that ripple through on a global scale.

Not only is digital banking contributing to the quality of life of people in quarantine, but it also allows them to access their accounts at all times. This goes well beyond the necessity of having to behave in accordance to social isolation – it is a financial paradigm that will continue to grow and outlive current events, as the adoption rate of such technologies is invariably aided by them.

In addition to benefits such as no fees or commissions or free card delivery to their clients, Fintechs offer a less risky alternative since they are not related to stock market fluctuations and its uncertainty in a moment of crisis-driven high volatility. Other asset classes deemed as safe in market conditions like this (think bonds or gold) may be witnessing the rise of a few rivals in the products offered by Fintechs.

As times keep changing, all industries will operate with new business models that are adapted to the conditions left by this new crisis. In this sense, Fintechs are a step ahead thanks to their business model and resilience. How they will evolve from here, only time can tell, but things do seem to be looking up for the sector born out of the 2008-2009 financial crisis. At this moment, having your savings in a Fintech is a bet that will possibly provide more profitability and liquidity to you and their users.

And as we face circumstances like we never have in our time, it continues to pay to look ahead. Because Humanity has faced multiple challenges in the past, both economic- and health-related. If we have anything to show for it, is that our collective ability to rise above can produce results never before dreamed. So odds that we will make through this are in our favor, and we must plan for what is ahead.

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