History has always shown that crises can accelerate the adoption of new technologies. The 2008 financial crisis moved a significant portion of traditional financial institutions clients into the financial technology sector and urged Banks are investing heavily in their digital technologies and strategies.
The current Coronavirus crisis is the biggest opportunity yet for fintech companies to break habits and meet the needs of consumers more than ever before and take care of their finances remotely instead of making personal visits To physical stores.
At the beginning , one must understand what the term fintech, or fintech, is a term that few have heard of since More than a decade ago due to his extreme degree of specialization, which addresses investors interested in this technology, but the term by which the technology of the financial sector that was developed in the 21st century is defined, it is the definition given to technology applied to existing financial, consumer and commercial institutions.
With the end of the first decade of the 21st century, the term financial technology expanded to include any new financial innovations in the financial sector, including innovations in financial literacy and retail banking. And financial investment, money transfer, loans, fundraising and asset management. It can also be applied to any innovation related to how individuals deal with businesses, such as inventing new money such as Bitcoin, and banks and their financial clients, consumers and small enterprises are the most prominent users of the new financial technology.
The Corona pandemic has proven to be the necessary push for fintech companies to gain traction with consumers who have been reluctant to transfer their financial resources over the Internet, and through social distancing measures that last for a long time. And lockdowns around the world, the world is getting a crash course on why the rapid adoption of fintech is essential.
According to analysis of data from August, Japan, South Korea, the United States and China saw the largest increase in time spent on fintech applications during the first week of March 2020, compared to the week The last of 2019 was 55%, 35%, 20% and 20% respectively
Countries around the world have seen a sharp rise in financial technology adoption. Latin America already had a high fintech adoption rate prior to the emergence of the Coronavirus. The rapid spread of the epidemic has increased its adoption.
Finch apps in Europe saw a 72% rise in usage in March, and Southeast Asian countries such as Indonesia and the Philippines are struggling with the epidemic, but fintech companies that provide Remote financial services continue to flourish.
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