2020 was what a lot of people imagined the Year 2000 would be. It brought about a massive change in the way the world works. Of course, we are not exactly living in a dystopian movie, but the rules have certainly changed in our personal and professional lives. We can say that we have emerged into a different world, and we would not be wrong.
So, how do you evolve to keep your business on top of the game? How do you ensure that the world does not leave you behind? How can you offer your customers and employees the right technologies and services to continue attracting and retaining them?
How Are Professional Services Different?
Shared documents, online presentations, and fully digital transactions have become the order of the day. Your digital infrastructure should be up to the task if your company plans to keep up with the times and transition to a fully digital or hybrid system.
You should examine your current operations. Do you need applications to ensure that the right resources are available to everyone at the right time? Does your existing communication infrastructure support seamless and secure communication both vertically and horizontally within the organization? Are there any IT support gaps?
With a remote working or hybrid model, you might need to re-examine some factors affecting cash flow, such as billing. How do you assign tasks or reassign your workforce to suit whatever new services you need to offer? What do you do with your lease now that you do not need so much space? Filling these gaps and solving these problems will ensure that you fully transition into an up-to-date business.
Contact our Advisory & Consulting professionals to learn how we can help.
Before and After: How is Fintech Evolving to Fit Today’s Customers?
While the world is still recovering from COVID-19, it is interesting to note that only about 1% of fintech companies were severely affected by the pandemic. This is significantly lower than the 18% of other high-growth companies, which worsened because of the pandemic. The following are trends in digital finance that have been sustained through the pandemic and are now part of everyday life:
1. Contactless Payments
Cash payments became practically fatal during the pandemic, so of course, the world moved on to adopt cashless payments. Even in some of the most rural parts of the world, shops, restaurants, and bars (if they were open) started declining cash. People then turned to contactless payments. It is worthy of note that some countries even increased their contactless payment spending limits to accommodate this change.
Many organizations have moved from being fully remote during the pandemic to being hybrid. Customers and service providers are also doing the same with contactless payments. More people are now used to contactless payments, but cash still serves a significant group of people. So, the obvious next step is to create a hybrid model where contactless and cash payments are supported.
2. Mobile Banking
With the pandemic also came an increased adoption of online and mobile banking. Of course, traditional financial institutions could not operate at total capacity. As such, banking halls became shadows of themselves as they had to temporarily shut down or reduce their services.
People turned to online banking and mobile apps for almost all transactions. Older people and people who were not well-versed with technology had to use mobile banking as a necessity. Now that the barrier of unfamiliarity has disappeared, nothing is stopping them from moving ahead with online and mobile banking. Consumers have now developed a taste for digital banking, from making more online purchases to initiating and completing numerous financial transactions online.
There are now new players in the digital banking industry. This includes new fintech and traditional financial institutions trying to innovate to meet customer needs.
3. Mobile Remittance Apps
According to the International Fund For Agricultural Development, over 200 million migrant workers sent money home to about 800 million family members in 2019. They value these remittances at over $550 million. During the pandemic, this amount dropped drastically, with IFAD predicting it to be at about a 20% decrease.
Because remittances could contribute up to 60% of a migrant’s family’s income, this decline would have drastically affected households. As such, digital finance companies are making innovations in terms of mobile remittance apps. These apps aim to make it easier for migrants to send money to their families back home. We now see more innovations with the new mobile apps and online platforms, such as lower transaction fees than usual.
Even traditional money remittance providers have started rolling out mobile applications for this purpose. This has continued to strengthen post-pandemic.
4. Improved Digital Experiences
During the pandemic, not too many people were willing to step into banking halls to make transactions. As such, Know-Your-Customer services started becoming more simplified for people. Fortunately, these services are not restricted to fintech but are being replicated across several industries. More and more cyber defenses are also being built. This is ensuring that online transactions are safer than ever.
Evolve or Go Extinct
If you run a financial institution that is not taking note of these changes, the chances are that the sweeping wave will leave you behind. People want faster, cheaper, and more accessible services compared to pre-pandemic times. They know that it is possible, and so they see no need to settle for less.
According to the World Bank’s 2020 Global COVID-19 FinTech Market Rapid Assessment Study, firms in digital asset exchanges, payments, savings, and wealth management reported growth in transaction numbers and volumes of 13% and 11%, respectively. Sub-Saharan Africa and North America saw up to 21% growth, while the Middle East and North Africa grew up to 40%.
As the global digital economy grows, it is wiser to begin making more online offerings, even if you try to sustain offline ones. Consumer behavior is changing rapidly from digital, and you must ensure that you follow suit.
Final Thoughts
It is essential to re-examine what you are offering to your customers and employees. How can you do better? What services already exist that you can take advantage of? What are the digital services that you need to create yourself? Get started by predicting what your customers will want through following trends and studying evolving customer behavior.
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