COVID-19 has turned the entire business world upside down. Enterprises are grappling with economic slowdown, fiscal shocks, stock market slumps, volatile market indicators, and whatnot. While some businesses have hit the rock bottom due to lockdowns, quarantines, and social distancing, the outbreak has thrown a spotlight on the unprescendence of FinTechs. This blog will get down to the nitty-gritty to explore the impact of the Coronavirus outbreak on the FinTech solutions. Could the outbreak act as a boon or bane for the FinTech world or does COVID-19 act as a double-edged sword for FinTech-as-a-service? Let’s dive into it.
As an upside, consequences of Coronavirus will ignite the movement of digital services. The fear of the new virus could proliferate the use of mobile payments, and fast-track the digital transformative journey of traditional financial institutions. As venture capitalists are reluctant to invest at the moment, the demand for digital solutions from legacy banks and credit unions, and these legacy institutions seeking help from FinTech, could give a huge push to the growth of FinTech firms.
As a downside, however, COVID-19 will negatively impact some of the early-stage FinTech firms that might even collapse during economic slowdowns. FinTechs in the payment sector will experience a huge drop in e-commerce transactions at a global level which drastically reduces profitability as well as valuations for FinTech. In the mid 2020s, the finance industry could expect a lot of mergers and acquisitions in order to revive and re-strengthen the entire financial domain.
FinTechs of the 21st century need to gear up to deal with this global emergency. During this darkest of times, FinTechs have to act efficiently and thoughtfully by delivering services that help people to work remotely, collaborate seamlessly, apply for mortgages, or make e-payments/e-transfers with just a single click. With digital payments apps, branchless banking, banking upgrades, and cloud computing technology, FinTech solutions have changed the game at global level. Mobile and contactless payments gained momentum as people have started using smartphones to make payments digitally to reduce social contact. During this pandemic, the emphasis is more on using contactless payment methods as a safer and hassle-free alternative to hard cash.
As per Forbes, Visa, Mastercard, And PayPal could get hit hard from Coronavirus. According to Bain, the major players in the U.S. mobile payments are PayPal, Apple Pay, Google Pay, Samsung Pay, Venmo, Square Cash and Zelle. Symphony, a secure messaging and collaboration app that is designed for financial services professionals, is thriving during the outbreak. Coronavirus expedited the use of financial apps in Europe by 72% in a week, reported deVere Group, one of the world’s biggest independent financial advisory organisations.
The coronavirus outbreak is a time for traditional financial companies to embrace modernization by adding new functionalities and capabilities to the legacy products and offerings. By collaborating with new age FinTech firms, they aim to offer superior digital solutions. FinTechs will definitely get a boost with an increased demand for digital banking software. The recent crises enhanced the work of RegTech, data, advanced data and analytics, bankruptcy and case management related companies like never before. Coronavirus might turn out as an agent that triggers digital transformation in the financial landscape.
COVID-19 propelled the adoption of elastic digital workplace to safeguard the health of employees at the workplace. Zymr leadership’s team made quick-paced decisions, took bold actions, and acted promptly to streamline critical-business functionalities and ensure business continuity. Zymr succeeded in managing the highest standards of productivity with elastic digital workplace solutions that drive a highly extendable workplace environment.
Collective Ownership – Zymr has excelled to work coherently with a team size of 250+ employees with agility through leadership communications plans, change management plans, support structure, dynamic adaptation, and broader networking.
Remote Work Environment – New remote work environment focused on internal meetings, secured remote networks for seamless integration among clients and teams, and to create a powerful virtual environment that manages the mobile demands.
Adaptive Security – ITOps, DevOps, and SecOps teams are on their toes day in, day out to maintain end-to-end security and are continuously upgrading tools and capabilities that enable effective remote working experiences to the remote employees.
Distributed Continuity – IT teams have done phenomenal preparation and setup in advance to ensure that no project or client engagement activity is hampered during this situation.
Zymr succeeded in assessing the current & future state, leveraging existing technologies and capabilities effectively to protect the interest of employees and embraced the new workplace reality to ensure seamless business continuity.
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With our game-changing solutions like Group Mobile Digital-Commerce Solution, and Digital Payments Risk Management Platform, embrace the rapidly changing dynamics of the financial industry that encompass end-to-end research and analysis, solution definition, and agile prototyping of MVPs to take your FinTech company to the next level.
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