What made FinTech thrive in the pandemic era?
In the wake of the pandemic, FinTech has become a sought-after industry. It's been described as "a dynamic space that is constantly evolving and changing." But why did it thrive during this time? What made it different from other industries? Well, the answer may surprise you: Not much! In fact, many of the trends that accelerated in this period were already in place before the pandemic hit. Let's take a look at some examples:
Accelerated digital adoption by consumers.
In the pandemic era, consumers were more likely to adopt new technologies. This was because they were under constant pressure from the government and health authorities to stay safe from airborne germs. Consumers had to take precautions such as using masks and hand sanitizers, which made them more aware of their physical safety.
This increased awareness also translated into their financial safety by accelerating digital banking adoption. In addition to making it easier for consumers to access their money online after work hours or during weekends when banks were closed, digital banking also allowed them to monitor their spending better than ever before and make better informed decisions about where they put their money – which meant less thriftiness in general!
Regulation of the technology companies
You might be wondering why the world is so happy to embrace FinTech in this decade, when they were so upset about it in the last one. What happened?
The answer is simple: regulation.
It's a word that sounds like it should be bad. But, just like people need food and water to survive, regulated companies are necessary for the health of our financial system—and we're not talking about regulation because regulators are mean (though sometimes they can be). Regulation exists for four main reasons: consumer protection; national security; money laundering prevention; and terrorism prevention.
If we didn’t have regulations in place, then people would be free to scam you with impunity and there would be no consequences. Regulations also protect our national security—if you're going to use a company's services, they need to make sure it doesn't pose any security risks. Finally, regulation prevents money laundering and terrorism by making sure that the companies providing these services (like exchange houses) are not being used as fronts for nefarious activities.
Contactless payments were popular in the pandemic era.
Yes, contactless payment cards were already popular in the United States before the virus hit, but they became even more ubiquitous once most people were quarantined indoors for months or years at a time. It’s not that much of a surprise, if you imagine yourself being stuck in your house with nothing to do but watch Netflix and eat takeout from Seamless. If all you need is something quick and easy, why wouldn’t you pay via Visa?
And it wasn't just about convenience; many people preferred paying by card because it was safer than writing checks (not to mention more discreet). You couldn't write a check without going outside—and even if you did go outside and write one at the post office or bank drive-through, who would come pick it up? Instead of having to deal with all those potential problems when trying to pay someone back for dinner or rent money while living through an epidemic outbreak—or worse yet finding yourself out of cash—contactless payments provided an ideal alternative
There were even companies that started offering mobile payment services during this time period. Google Pay, for example had already been around since 2015 but saw a huge uptick in business when its competitors (Apple Pay, Android Pay) launched their own versions of contactless payments. And it wasn't just them: Venmo and PayPal's popularity surged as well because they offered ways to send money from one person to another without having to go anywhere near each other.
Although PayPal had already been around since 1999, their rise in popularity during this time stemmed from people being able to make transactions online or by phone. Contactless payments are the future of consumer transactions—and it's only going to get easier for those who want them.
Corporate innovation is the process of introducing new products, processes, or services to the market. It’s a long-term strategy that requires continuous investment for innovation, and is designed to meet the needs of customers by creating value.
Corporate innovation takes place at all levels of an organization: from product development to marketing strategies and customer experience design. In this section, we will focus on how companies can optimize their business models in order to survive in an era of hyper competition while still meeting customer needs.
Trends that already existed were accelerated by the pandemic.
One of the most significant impacts on FinTech was the pandemic, which accelerated trends that were already in place. For example, a few years earlier, many banks had already begun to offer online services and digital banking solutions, which let customers access their accounts via mobile devices. The pandemic only helped speed up this trend.
A second impact can be seen in how many companies began to use cloud-based technology for their operations during this time period. Cloud computing is when data is stored remotely on servers rather than local machines or computers; it's become increasingly popular because it saves money by allowing businesses to rent out space on these remote servers instead of buying expensive equipment themselves and maintaining it with staff costs.
Although there are many ways that FinTech has benefited from changes over the last century or so (more about those later), these two examples show how important events like natural disasters can be to shaping society—and specifically how they impact our financial institutions today!
It’s clear that FinTech is here to stay. Although we are still in the early stages of adoption, we can expect a lot more growth in this industry as it continues to transform how people interact with money and other financial services.
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