We’re quickly approaching one year into the pandemic, and COVID-19 has changed the world in a few big ways. From how we shop to how we hang out; the digital sphere is facilitating virtually every aspect of our daily lives.
The financial sector is no different and has been relying on technology to stay afloat during the current market downturn. Fintech is helping to connect consumers with lending resources, speed up approval processes, boost data security, and more.
Here are 5 primary ways fintech innovation is driving the economic sphere, and why this technology will outlive the active pandemic.
1. Widespread Program Adoption
Technology trends are typically a hit among younger populations – regardless of the specific industry or specialization. However, the rise of cyberthreats like identity theft and sophisticated fraud schemes are bringing the fintech sphere to seniors.
Aging consumers are looking to the simplicity and consistency of tech tools to stay safe online. These demographics are preferring to stick with plug-and-play programs that are user friendly and easy to implement into their current lifestyles.
All consumer groups are trying to navigate through shortened bank hours, limited lending services, and other industry changes caused by the health crisis. As a result, interest in secure mobile apps and instant rate calculators has risen significantly.
2. Online Remittance Platforms
Travel is another major market that was impacted by the pandemic. Travelers and immigrants around the world have turned to online remittance platforms to stay financially connected with their loved ones at home.
Lending institutions responded across the industry by providing low-cost remittance solutions to their networks. This has helped large and small organizations attract this growing audience and provide additional support in this tough time.
Consumers are rewarding brands that show patience, transparency, and fair practices. One leading financial institution saw a 17.5% increase in business during the start of the pandemic.
3. Diverse Payment Options
Chip-equipped credit cards are now accepted virtually everywhere in the United States, but that isn’t the only payment method that has gained traction in 2020. Mobile, cryptocurrency, contactless, and tap-to-pay payment capabilities are becoming the norm in American online and brick-and-mortar shopping.
Accepting more payment options has also helped retailers and consumers to keep their data safe during the transaction. Since everyone started conducting a majority of their business online, cyber criminals have followed suit.
But commercial brands and fintech providers are working together to protect all parties with:
- Data encryption
- Multi-factor authentication
- Block-chain coding
- Compliance standards
- Remote access
Keeping online data protected and out of unauthorized hands has the potential to save financial companies more than $8 million – per individual data breach.
4. Instant Online Rate Quotes
Federal interest rates reached rock bottom levels this year, and borrowers across the country took advantage by continuing to make major purchases despite the economic downturn. Using smart online tools and instant rate calculators, lenders have helped to make the loan application process easier and more accessible for consumers.
Consumers in need of fast cash can simply type title place near me into an online search bar, and within minutes are able to see if they’re approved for a loan. Additionally, prospective homebuyers can use the same technology to compare mortgage quotes between multiple providers to secure the best rates.
The capability to instantly and independently secure rate quotes is also being used in other industries to shorten transaction time and boost production. Ultimately, any function that can be automated is beneficial to any institution’s bottom line.
The Coronavirus pandemic is responsible for a 72% increase in the use of fintech apps. These mobile and desktop systems have provided consumers with an easier way to handle banking, lending, debt management, and even shopping.
User-friendly and accessible technology that improves borrowers and lenders ability to safeguard online data is, without a doubt, going to be a mainstay in the finance sphere for the foreseeable future.