2 min read How COVID-19 is Driving the Fintech Sector
How COVID-19 is Driving the Fintech Sector
As the COVID pandemic passes, we emerge into a new world. The way we bank and exchange money is changing along with many other aspects of our daily life. Digital social trends are shaping our world, and banking along with it, at a much faster pace than ever before. This is especially true during this time of COVID when everybody is on their mobile devices and their tablets as a main means of communication.
Due to this trend, the Fintech (financial technology) space is now undergoing tremendous change across the country. COVID has taught all of us how to bank online. Most of us haven’t stepped foot in a bank to deposit a check in months- we all do it all digitally at this point. You are likely going to see banks start to close their doors, and rapidly. A lot of the branches facing imminent closing will try to get more and more of their customers banking digitally through Fintech platforms.
Rising Investor Interest
There’s been a ton of investment in FinTech recently. There is a tremendous appetite from the venture community and the public markets today for this category of company. The reasoning for this is fundamentally the digitization of their services. COVID has driven us all indoors and away from public spaces. The best solution to continuing business as usual in this restricted atmosphere is to move the business online. Everything is being digitized, including financial services.
The difference is that financial services are thriving online because they’re not handling a physical product. They’re perfectly suited to this digitization trend as they’re fundamentally just moving bits and bytes around. And so, the growth in investment in this sector continues.
Future Adaptations
This success in the implementation of digital platforms also sets up players in the Fintech sector for the next trend-adoption of AI and learning machines. Learning machines will allow the process to improve in terms of efficiency, relevance in product offerings based on the specified customer base, and security of personal information. Implementation of AI will streamline growth. Thanks to current digitization efforts, the Fintech sector is on track for seamless implementation of AI and machine learning when the proper technology is accessible.
Why It Matters to Investors?
Social trends are driving change across all things business. COVID has worked wonders at putting this fact in the spotlight for all business operators, innovators, and investors to see. As the world moves online to accommodate the health regulations imposed by the pandemic, social trends will only strengthen. Investors should be striving to understand and follow these social trends that are shaping our world at a much faster pace than ever before. People are on their phones and their tablets, they are asking questions and sharing information. And now, they are banking.
Read more in the TEN Capital eGuide: https://www.startupfundingespresso.com/fintech-problem/
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group
