The COVID-19 pandemic has brought about unprecedented changes in the world, and the financial sector is no exception. As we move towards a post-COVID world, there are three FinTech aspects that we believe will make all the positive difference.

The COVID-19 pandemic has brought about unprecedented changes in the world, and the financial sector is no exception. As we move towards a post-COVID world, there are three FinTech aspects that we believe will make all the positive difference. European Payments Initiative (EPI)

The European Payments Initiative (EPI) is a joint venture by leading European banks seeking to put an end to Visa and MasterCard's monopoly. The timing is perfect, coming at a time when everyone is seeking digital, contactless payment solutions. This initiative is similar to how Paytm literally stole market share during India’s demonetization drive back in 2016. The EPI is expected to provide a unified payment system across Europe, making it easier for consumers and businesses to make transactions across borders. This will be a game-changer for the FinTech industry, as it will provide a level playing field for all players.

EXPANDING MARKET BASE VERSUS CAUTIOUS INVESTORS

A survey of 70 Indian Founders and CXOs conducted by Venture capital firm Matrix Partners and consultancy McKinsey & Company has brought forth two interesting trends worthy of notice. While Venture Capitalists are shying away from market opportunities and playing it safe, customer acquisition costs have also reduced considerably. Consequently, the market base has increased by a wide margin, opening up the possibility for innovation. This trend is expected to continue in the post-COVID world, as businesses look for ways to expand their market base and reach new customers.

STOPPED ON ITS TRACKS, YET EXPANDING

The FinTech Industry has been robbed of the exponential growth it boasted about in Q1 2020, just before the pandemic. However, as of November 15, 2020, CrunchBase has reported a whopping $26.5 billion being invested in global FinTech companies. This literally amounts to 14% of all global investment, all of which can be attributed to fresh energy and interest being pumped into contactless banking apps, payment apps, paperless investment startups, and FinTech for Healthcare apps. Clearly, the tide is turning in favor of FinTech startups and businesses.

The COVID-19 situation has brought about death and destruction worldwide. If anything, it has also presented us with new business opportunities. And FinTech is right up there on that list, a certain benefactor.