Fintech App Development- Future of FinTech in a Post-COVID-19 World

The Financial industry has seen high prosperous growth in recent times due to the rise in innovation and expansion of technology in almost every aspect of the business ecosystem. One important part of it is the FinTech segment. Starting with banks, it has given shape to various other financial areas such as insurance, investments, and financial planning.

However, the world has changed after the unfortunate expansion of deadly and infectious coronavirus across the globe. All business worlds are reeling under its pressure and FinTech application development has come to a halt.

The current COVID-19 crisis has put the whole of the banking (and financial) infrastructure under stress. Some questions raise the concern: What will be the future of FinTech post-COVID-19? How will changes be made in FinTech industries after the given pandemic will get over?

To answer the above-given question, there arises a need of creating a strong capital foundation for offering more personalized FinTech software solutions to the customers. It will help not only in the present but will also set a path for success in the future digital world!

In the given guide, there will be a detailed explanation about some essential steps that will be taken by the FinTech companies to stay relevant post-pandemic, and where the ‘new normal’ will become the order on which FinTech will operate thereon.

What is FinTech?

FinTech is a combination of two concepts- Financial + Technology. It describes the given new technology that is in the continuous procedure of improving, upgrading, and automating the use and distribution of the financial services. With the help of it, FinTech app development is available for proper management of the financial operations and processes by the business owners and companies alike.

Initially created to provide financial services, it now covers various financial activities like fundraising, education, investment management, retail, banking, and many more. Moreover, it also plays a pivotal role in the usage and development of a new type of currency (or we can say cryptocurrency) like Bitcoin.

Nevertheless, the arrival and rapid expansion of coronavirus has created a wide gap in the company-consumer relationship. The next stage will be on how COVID-19 has severely impacted the working of FinTech apps.

Effect of COVID-19 on FinTech

The ongoing COVID-19 pandemic has made every industry suffer and even financial industries are not spared from it. Since FinTech came into existence from only the last decade; there have been limited options for the industry as it has a limited resource pool to come out unscratched post-pandemic.

What’s more, the FinTech industry is still dependent on the relief packages provided by the government. Besides, their business also depends on venture capital funding that helps them to retain their employees and help in the creation of a working plan to always be on forwarding mode.

A recent report indicates that there has been a significant decline in the funding trends for the FinTech industry. Reports from CB Insights reflects “quarter over the quarter” falling of FinTech deals worldwide. Besides, it also reveals that global deals to FinTech companies have slash continuously for eight straight months that has made matter worse than what has been thought.

What’s next? Experts are asking FinTech organizations and startups to take immediate actions to lay more emphasis on their cash flow management and balance sheets to remain relevant. The research also signifies a solid fact that there will be a reduction in business and consumer spending, which will result in less transaction-based revenues.

Thus, a FinTech app development company should focus on serious financial challenges waiting at their doorstep and focus on ‘new normal’ to reduce costs and remain sustainable in this difficult period.

The New Normal for FinTechs

Previously, ‘old normal’ for FinTech implies how much customers the financial institutions have with them. But in the present real world, ‘new normal’ implies that the customers are someone who can pay for the products and services.

For FinTech companies, the ‘new normal’ defines the key success metrics depending on the quality of producing the goods to the customers appropriately. Furthermore, a new wave of FinTech- the Neo banks- have poised to become a new normal. Why?

It is because they have become the best alternative to the traditional banking model and have magnified the competition in a great manner. Moreover, new banks have become a new-age interpretation of all the financial services (banking services also).

During the COVID era, it has come as a boon for the financial company as they are digital-only financial service providers and does not require any physical presence. They come with processes that work in digital mode and can be accomplished through either website of the given bank or just from the banking app.

Another ‘new normal’ is a frequent change in the role of intermediary. Gone are the days when consumers have to get availing their financial services through intermediaries (like advisers or brokers). Now, during the given pandemic, they perform their financial duties using digital mode and have negated the importance of intermediaries to a great extent.

After getting information about the ‘new normal for the FinTech sector; the time has arrived to focus on the facts that will help FinTech to evolve effectively after COVID-19.

COVID-19 challenges in the FinTech Sector

With more and more people opting for digital financial services, it is prudent that the FinTech sector will benefit the most. However, COVID-19 has created several challenges for the given sector that has put a brake on its efficient working.

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