The pandemic has forced the financial industry to change the way it distributes its products. Exactly the same processes take place here as in the e-commerce industry on the consumer market. Provema sums up the year in the fintech industry.
Good first three quarters of the year.
There is a widespread belief that 2020 was favorable for the fintech industry. However, the matter is not that simple. On the one hand, by basing the distribution of services on the Internet, we were naturally prepared for this crisis, we have always contacted our customers via the Internet and telephone, we have adapted to remote work without any problems, moreover, we have noted a very large increase in customer interest in our products. However, on the other hand, the entire financial industry had to face a surge in investment risk, which required changes to our algorithms and procedures.
Summarizing the first three quarters of this year in terms of sales, we still see a slight increase compared to the previous year. At the beginning of the year, we had higher expectations, but looking at the state of the economy as a whole, I think we should not complain.
Fintech and COVID-19
The pandemic has forced the financial industry to change the way it distributes its products. Exactly the same processes take place here as in the e-commerce industry on the consumer market. Complex sales structures based on local branches or networks of intermediaries are no longer effective. Banks also need to adopt a model proven by fintechs, i.e. concentrate distribution on online channels, create a high-quality automated customer contact process and drastically reduce operating costs, which will enable us to offer our customers attractive and cheap products.
It can be said that as a result of the pandemic, the entire financial industry was forced to start operating more efficiently, focusing on customer needs and on profitable areas of activity.
The financial sector must open up
In the near future, we plan to launch our new application for debt collection. Currently, debt collection is a very expensive process that requires the involvement of numerous personnel. Automating these processes will lead to increased efficiency and a radical reduction in costs.
Contact between the debtor and the creditor through the application organizes the entire process, and also leads to the elimination of unnecessary emotions. In addition, in my opinion, the development of the financial sector requires that it also open up more to customers without a perfect credit history. The current policy of condemning such clients to financial exclusion is not a good solution.
Fintech in 2021
2021 will be a period of further growth in the fintech industry. On the one hand, banks will absorb technological novelties developed by computer startups, on the other hand, the best fintechs will apply for banking licenses. As a result, the financial market will be dominated by enterprises combining the advantages of banks and fintechs. They will have good access to capital, but will also build their strategies based on customer needs.
Business processes in the financial industry will be further automated. Electronic payment technologies are expected to develop particularly intensively. We will use payment cards less and less, we will use tokens and disposable cards more and more often, we will also make contactless payments using various electronic devices. The pandemic, instead of slowing down, only accelerated the development of our industry.