The impact COVID 19 had on today’s business world is tangible even if you haven’t experienced it directly. With companies shutting down and with the unbearable collapse of the high street in the UK, finance as a whole has decided to take some initiative to build what will be known as the future in a post COVID world. Let’s analyse some examples.
Digital, Contactless Transactions
The first big thing which will happen is most definitely going to be the limitation of cash flow. Many countries in Europe are, in fact, evaluating removing cash from their day to day activities such as grocery shopping and many more. Contactless transactions are also better to keep the money flow clean and within the control of federal governments. It has been estimated that, within finance, digital infrastructures are set to become 20% bigger than now in the next 5 months’ timeframe.
Finance And Data
If you ever applied for finance in your life, whether if it’s for a mortgage or for commercial property auctions, you definitely realised how bulky and complex the bureaucracy could be in some cases. With COVID, this sector had to overcome such struggles in order to maintain their workforce going and, therefore, they started using data to elaborate (automatically) credit risk, mitigations, exit routes and to even approve or reject any form of credit. Finance and data are currently the most looked after environment within finance and that’s due to the fact that data has become the most valuable asset on Earth, surpassing even oil in 2018. It’s definitely safe to say that, after this pandemic, you will be able to finally forget bulky and long procedures to buy or sell particular items or properties.
The Entire Fintech Sector Will Dominate
The two examples above are heavily related to the technological field. And that is mainly due to the fact that technology as a topic has been the main focus for over 45% of businesses throughout this pandemic (Forbes). This is yet another statement of the fact that fintech as a sector, after this virus, will just become “finance” and many, many new pieces of tech will emerge to become part of our day to day money exchanges.
The world is definitely going through a lot of changes and this pandemic has acted as a trigger for many old sectors who were demanding an update for ages. Let’s hope all these will be for the better.