Fintech Industry – Blockchain, Forex and Electronic Money Institutions remain Resilient despite Covid-19
COVID-19 and its remarkable impact on all walks of life have been making headlines for several weeks now. The outbreak has presented many challenges for different businesses, including the well-known financial service firms looking to operate their businesses with employees working from home. A different line is now being drawn between companies which have digitized their business and those who are languishing with outdated methods and technologies.
Interestingly, as much as time is changing, the fintech industry – blockchain, forex and electronic money institution still stand tall among its peers. In fact, never before has fintech been so critical to the operation of businesses around the world so much that the need for tech in banks and other conventional financial services organizations is being exposed.
How Fintech is Standing Strong despite Covid-19
So, the question is how is fintech standing strong and rising during this Covid-19 pandemic and why now is an excellent period to start your visionary project if you have one in mind. Firstly, fintechs have made self-isolation a much easier task and in hindsight have made the possibility of flattening the curve of this outbreak much bigger. Although people are now at home and can’t go out, especially to usually crowded places like banks, financial activities must still be carried out. Luckily, fintech companies are the only escape to the current situation.
Social distancing is the most effective way to fight the spread of coronavirus, and fintech has made this practice much easier. With banks closing branches and cutting staff hours, clients in need of continued services quickly moved to online platforms. Online, contact-free, cashless payments have been recognized and endorsed by the WHO as the safest option to pay for goods and services while under lockdown and these services are rendered by Fintech companies.
How Fintech is Safeguarding Financial Transaction during Covid-19
As the crisis takes its toll on the global economy, fintech products have been taking on increasingly important roles in safeguarding the finances of both individuals and businesses. For example, Give directly – a leading global NGO specialized in delivering digital cash transfers, is responding to the crisis by introducing a new feature that lets people send funds to people in the USA who were hit by the economic effects of COVID-19.
Looking at it from the perspective of the blockchain/crypto based fintech startups, these companies have recorded an increased number of new signups and transaction activities since people have realized that they are safer means to carry out a transaction in the comfort of their homes. In March, when the pandemic began to hit hard, every niche was affected with cryptocurrency being the least affected. Interestingly, within then and now, it is also one of the few industries that have bounced back with bitcoin recording over $2200 increase since last month.
Online services that we can pay for through fintech are now practically covering every industry imaginable. These services have become such an essential part of our lives and thank fintech; we can carry them out despite the lockdown and quarantine situation.
Covid-19 will definitely leave a huge vacuum in the world economy. However, with the several points mentioned, you will see that fintech will continue to wax stronger. As such, now is the time to take the bull by the horn and start your visionary project of establishing your fintech startup.