Where has fintech helped to solve the Covid-19 crisis and global pandemic?
Oh Covid-19, you’ve certainly made your mark, closing borders and forcing entire countries into lockdown. The stock market has taken a battering, people have lost wages and social distancing has become the new norm. But is it all doom and gloom? Not quite!
While we’re undoubtedly facing pretty rough times, fintech innovations are making the whole pandemic a lot easier to navigate. Everything from online payments to app downloads are helping to maintains a sense of normality. So, let’s take a closer look at how fintech is helping to solve the Covid-19 crisis.
Online deliveries are a piece of cake
As physical store visits dropped by a whopping 90% in one month due to lockdown measures, consumers started to look for alternatives. 14.2% of UK internet users aged 18 and older increased their online grocery shopping and 6.9% ordered more takeout online according to the RetailX Coronavirus Consumer Confidence Tracker. And it was a similar story across the pond, with 31% of US households also using an online delivery service throughout March – a whopping increase of 145.3% compared to August 2019.
Such measures were possible thanks to advanced fintech systems designed to make transactions quicker, safer and more convenient. These days, you can order almost any product or service online without ever leaving your house which, in turn, makes quarantining a whole lot easier to handle.
There’s no need to use potentially contaminated cash
With the fear that Covid-19 could live on cash, China and Korea have already started quarantining notes for fourteen days – just in case. According to a report by CNBC, the US Federal Reserve is also placing US dollar notes from Asia into isolation, to try and eliminate any potential risks. But thanks to fintech, is there really any need to use cash at all?
Statistics show that Covid-19 has boosted e-commerce considerably. In Italy, e-commerce transactions have risen 81% since the end of February. And the nationwide coronavirus lockdown has benefited digital payment platforms in India with 42% of Indians boosting their digital payment usage over the past month. In the UK, cash usage halved in just a few days, due to both the government’s nationwide lockdown and a surge in businesses moving online. As the pandemic continues, the focus on e-commerce is likely to grow with the technology behind such businesses stealing the limelight.
Mobile App Spending Soars
With normality grinding to a halt, many people are looking for ways to not only make purchases, but to stay entertained during the lockdown period. As a result, mobile app spending has soared. Indeed, mobile downloads are predicted to reach $183.7 billion by 2024, up 9% from the forecast that came out before Covid-19 that had initially account for 7 billion fewer installs. Much of this download growth is happening in 2020, with first-time app downloads set to reach 140.3 billion, up 22% from 2019 and fuelled by fintech innovation.
Consumers are also looking for convenient and alternative investment options with app solutions. While stocks and shares lost a minimum of 25% in March 2020, AI-enhanced investment companies like 8toPuz helped their clients gain 5% through their unique platform.
No-one quite knows how the pandemic will play out. But one thing’s clear and that’s the need to go digital in order to future proof your business model.