A recent blog post by FinTech Connect suggested that the current COVID-19 crisis will finally push Financial Services Companies such as incumbent Banks to invest in Digital Transformation. A unique set of circumstances is driving innovation and invention. Financial Institutions such as Banks have always been adamant that they are the ones who understand the millennial customer. The reality however, is often far from the truth. A lot of these Financial Institutions have been playing catch-up to the times and the consumer trends, Outdated I.T. systems and technology have been primarily to blame as they simply lacked the investment needed to drive the agile processes needed in the modern consumer age.
Finance Companies must Innovate to Survive
The current situation has forced Finance Companies to innovate or face the consequences. Some reasons for this are as follows – 1. The COVID-19 crisis has seen vast amounts of people forced into working from home. For companies who have never used this option before or if they did with a small percentage of their staff and management, it means they have to go through their own digital transformation in the way that they communicate with each other.
- We are not visiting Bank Branches like we have done before so services that were only available in person now need to be part of the Banks Digital Toolkit.
- Contactless payments have increased even further (great news for FinTech Companies) with UK Finance pushing the rate of contactless payments to £45 per transaction.
The Challenger Banks, which are natural digital platforms, have the advantage, however they are not immune to the negative economic impacts of this pandemic with plenty having to let staff go. Others, however, have seen the need to add to their headcount, especially in specialised areas of the business that this post-coronavirus is taking us.
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