While FinTechs might be fearing the impact of the coronavirus on their business, it might actually be a beneficial thing for them, a study from financial advisory firm deVere Group claims.
In Europe, usage of FinTech apps was up by 72% in a week, due to people being cooped up inside.
The opportunities the coronavirus could play for some FinTechs has also been expressed by other researchers. Earlier in the month, Bold in Finance claimed UK digital bank Revolut could increase its customer base from the 10.84 million users it had in February to 13.07 million by June.
Moving further ahead in the future, the challenger bank could increase users by 36% to reach over 16 million users.
deVere Group divisional manager of Europe James Green said, “Since the 2008-2009 financial crash, fintech has been filling the void left between what traditional financial services companies are offering and what clients are now expecting, especially in terms of customer experience. In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs.
“It can be expected that due to the Coronavirus pandemic and the steps being taken to combat it, this move towards fintech will be significantly accelerated. FinTech is fast-becoming the new normal.”
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