Covid-19 pandemic continues to bring uncertainty in our daily lives. Most countries are experiencing higher numbers of infections, as others seem to have the situation under control. A new normal is coming up. Some business set ups have opted to open online shops and offer home/office deliveries. More people are embracing the use of Mobile Apps for their banking and using cashless transactions. In this journey, fintech has a role to play.
According to Investopedia, Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. It describes any company that uses the internet, mobile devices, software technology or cloud services to perform or connect with financial services. Basically, fintech products are designed to ease the use of financial services. They also promote excellent experience of consumers with their financial service providers.
Through fintech, one can easily manage/ transfer their funds, bank, pay for service, trade stocks etc. This is powered by mobile Apps, online banking/ platforms among other innovations.
Over the years, the financial industry has been going through changes due to technological innovations. The reporting of the first case of COVID 19 in Kenya, businesses and individuals turned to technology to stay afloat. Fintech has come in handy for financial service providers and businesses alike during this season.
Covid 19 has made the public more aware of their surroundings and increased the demand for contactless financial solutions. Fintech companies have generated solutions that allow individuals and businesses to transact safely with little or no contact at all.
More financial service providers such as banks embraced the use of Mobile Apps and online banking. This enabled their customers to transact at their own convenience and safety. More businesses also started allowing cashless payments such as use of wire transfer, paypal and mobile money. This has played a huge role in curbing the spread of the virus. People no longer have to make unnecessary visits to their local bank branches for services or carry around paper money. This in its own way has helped in preventing the spread of the virus.
Some of the innovations that stand out and will continue to are;
Use of Apps and mobile banking are convenient for most users. It is likely that more people will embrace the use of these rather than visiting banks to make transactions. Additionally, cashless payments are safer and fast. This gives businesses and their customers flexibility in their transactions and access to money.
These operate digitally, providing basic banking services without physical branches.
operate digitally, providing basic banking services without any physical branches. Some of these banks are Mpesa, SolWallet (SA) and Kudabank (NG). Gradually, more people are embracing these banks. They are changing how people save, bank and spend their money.
The Fintech industry is diverse with numerous solutions. The main goal for each of these solutions is to make banking easier for everyone. As economies deal with the Covid-19 pandemic and recover from its effects, Fintech is a major player in both times.