The outbreak of COVID-19 has become an unexpected catalyst for technology adoption globally. Fintech had emerged as an organised sector from the 2008 global financial meltdown but could now even more become key enablers of innovation and disruption in the financial sector.
These days, online activities and transactions are no longer a matter of convenience but a necessity. Banks are launching digital channels so that customers can bank from home, and they can provide extra support to borrowers in distress. Schools are conducting classes through teleconferences. Grocery stores have shifted to online ordering and delivery. Doctors have begun delivering telemedicine. The list goes on.
As people adapt to a digital lifestyle, so too will they expect the same convenience and seamless experience from other areas of life, including financial services.
Fintech has been a buzzword in the world of finance and has significantly shaped various areas, including banking, insurance, and investments. It also has a unique capability to extend financial inclusion, improve the daily lives of people, and spur growth. Anticipations are that the Fintech domain is to play a very crucial role in a post-COVID-19 world. And, for that to happen, the Fintech industry needs to evolve and adapt to this new scenario.
With the evolving global economic disruption, Jake Riley Limited in commemoration of the Nigeria Fintech Week (NFW) 2020, organised a webinar that brought to limelight new fintech solutions that can be leveraged in key important but neglected sectors such as health, agriculture, education, ecommerce, logistics amongst others.
The webinar revealed the paradigm shift in innovation and the new waves of digital and financial disruptions and solutions to rescue economies of the developing countries.
In attendance were participants from the public and private sector, banks and financial institutions and business owners who learnt more about the revolution in financial services and latest trend in the FinTech market.
IT Solutions and Business Development experts Joel Ogunsola appeared as lead speaker delivered his presentation on how to leverage digital innovation in the FinTech industry.
Also explained during the webinar were a few ways fintech companies are expected to stay relevant in a post-pandemic world, where the ‘new normal’ will be predominant.
The first is the role Blockchain will play in the emerging innovations that will take place jn the Fintech space. Blockchain holds the power to change the dynamics of the industry. An economic slowdown could fuel more security risks and provide a greater incentive to companies to engage with such technology and explore areas that need improvement.
With the increment in digital transactions, data is prone to risk. Fintechs will have to educate customers about the risk and also how to stay protected from fraud. For the same reason, Fintech companies will also have to focus more on managing customer data safely and introduce new data security features. Blockchain here can immensely help in digital payment fraud detection by augmenting real-time transaction data sharing and agreement of all parties, thus eliminating fraudulent activities.
Secondly, Fintechs could help governments in providing financial services to people who lack access. Digital technologies are increasing the security, speed, and transparency of transactions and allowing for the development of sustainable financial products that are tailored to the needs of people with erratic or low incomes.
As Fintech innovation continues to evolve, can the world rely on Fintech to bail it out of the looming global financial and economic crisis?