quora
Read More about fast-id page

Shufti globally launches webinr-icon - a new kind of identity solution!

Shufti globally launches - a new kind of identity solution!

Read more

Impact of COVID-19 on disruptive Fintech industry

impact of COVID19

The economy and society worldwide are affected by the corona crisis. The effects of COVID-19 on banks and FinTechs are manifold. The numerous short-term challenges and risks could be offset by diverse opportunities in the medium term.

The current corona pandemic has swept through most of the world bringing society and the economy to a halt partially. As schools and businesses are gradually closing, governments are calling for people to stay at home, to curb the spread of COVID-19. Since the virus is not yet showing signs of disappearing, current restrictions in many countries could last longer than planned.

As with all crises, COVID-19 could offer opportunities in addition to the associated challenges. While personal contacts need to be minimized, digital services are becoming increasingly popular. So the start of Disney’s new digital streaming service was (unintentionally) chosen optimally. In addition to streaming services, many online retailers could also be among the winners of the crisis.

Effects of Corona on the business models in the financial industry

The banking industry was much stronger before COVID-19 than before the 2008 financial crisis. However, the need for different strategies in terms of marketing, innovation and digital banking was clear long before the pandemic. The question is whether financial institutions will continue to be committed to new business models after the crisis.

Payments in the post-corona period

The European Credit Sector Associations (ECSA), which jointly represent the banking sector, have published a paper outlining the policy direction for EU payments over the next five years that goes beyond the immediate challenges of the coronavirus. The main headlines from the paper include an increase in contactless payment and online transactions.

Challenges and opportunities for FinTechs

According to a report published by Finch Capital, 2020 will be a year of challenges for the Fintech sector, but the post-crisis era will be prosperous for the Fintech industry and its enabling sectors including IoT, clouds, Blockchain, and artificial intelligence. As the demand for digital transformation will surge in the post-pandemic era, the fintech sector will emerge as the disruptive winner.

The crisis triggered by the corona pandemic has not yet reached its peak, but if the dust settles, there will not only be losers but also winners. What does this mean for the FinTech sector in terms of opportunities and how does this affect businesses?

To get a better overview, here are five tendencies that are seen in the industry.

1. Opportunity for online financial services

With a surge in remote work and social distancing, a new opportunity arises for the challenger banks and Fintech apps. As the digital payments trend and mobile application adoptions see a sharp rise some fintech apps are seeing a 72% rise in the usage.

Neo-banks are offering a range of payment options and guidance for their customers by creating online guides and newsletters. There is also an increasing trend of unusual partnerships between tech giants and Fintech startups. For example, Microsoft partnered with Plaid to let people automatically import their bank account and credit card data into the Excel sheets.

2. FinTechs make financial management easier

FinTechs cannot replace all aspects of normal life, but make things easier in people’s financial lives where we can buy everything without being physically present in the store or using our physical cards or cash.

3. Digital Transformation is inevitable

As the world goes to a lockdown situation, the need for digital channels and products is inevitable for businesses and firms everywhere. Businesses that have the potential to transform their technological capacity and investments into the digital channels will deal with the impact of the pandemic and keep their daily operations running smoothly.

4.  Increase in the demand for digital enabling technologies

In its report on The future of disruptive and enabling Fintech, Finch Capital emphasized the increasing demand of digital enabling technologies. Digital Identity verification and contactless KYC verification are an important part of any organisations digital transformation. As the Fintechs are primarily based on digital platforms, they need to verify that customers’ digital identity matches their physical identity while conducting businesses online. Especially, as cyber fraud is on the rise during the pandemic, businesses will more than ever need reliable solutions to verify customer without any physical connections.

5.  Biometric authentication is becoming increasingly important

In a survey conducted by TransUnion on 1068 U.S citizens, 22% were founded to be the victim of digital frauds related to COVID-19. This explains the need for new methods for authenticating the user. Conventional authentication methods such as SMS-based two-factor authentication and knowledge-based authentication make it impossible to really know whether a person who logs in is actually the account holder.

This is different from biometric methods. Biometrics such as fingerprints, face recognition ensures that only the authentic user is allowed to log-in to their accounts online. While experts were previously predicting an increase in the adoption of biometric authentication, the frauds related to pandemic has made the appropriation of biometric technology for user authentication important than ever.

Are FinTechs among the Post Corona winners?

While the fintech sector is currently struggling with the economic consequences of the coronavirus, there is some evidence that the crisis could ultimately benefit the industry by accelerating the onslaught of digitization.

This also means that despite the economic crisis and hardships that are expected to follow, now is the time for the businesses to go digital especially for the financial sectors. The investors and businesses need to adopt fintech solutions which can increase customer experience. The economic-financial crisis has already proven that digital financial services will be the future and digital enabling solutions including contactless authentication, digital identity verification, online KYC will be more than ever necessary in the increasingly online world.

Related Posts

Blog

The FATF Travel Rule: What Business Owners Must Know

The rapidly evolving landscape of technology and cryptocurrency has made the regulation of digita...

The FATF Travel Rule: What Business Owners Must Know Explore More

Blog, Fraud Prevention

Internet of Things: B2B IoT Segments about to hit $300 Billion by 2020

The Internet of Things is growing exponentially with respect to its usage and capabilities. A who...

Internet of Things: B2B IoT Segments about to hit $300 Billion by 2020 Explore More

Blog

Enhanced Digital Security with Facial Recognition and Liveness detection

The increasing number of cyber-attacks and online fraud calls out for strong security measures. U...

Enhanced Digital Security with Facial Recognition and Liveness detection Explore More

Blog

KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers

“Sharing Economy” is a term that has become popular in recent years, and the current digital worl...

KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers Explore More

Blog, Financial Crime / AML, Reg Tech

AML Checks: An Emerging Frontier in RegTech Revolution

The Anti Money Laundering (AML) landscape has been around since the signing of BSA (Bank Secrecy ...

AML Checks: An Emerging Frontier in RegTech Revolution Explore More

Blog

KYC Verification Process – 3 Steps to Know Your Customer Compliance

Did you know there are three key components to KYC? The entire identity verification procedure en...

KYC Verification Process – 3 Steps to Know Your Customer Compliance Explore More

Blog

KYC Compliance – Identity Verification for Brokerage Companies & Trading Platforms

Online trading platforms provide businesses with the convenience to keep an eye on financial mark...

KYC Compliance – Identity Verification for Brokerage Companies & Trading Platforms Explore More

Blog

Top 10 Biometric Technology Trends to Watch For in 2022

Biometric innovations in present times have manifested various technological advancements and the...

Top 10 Biometric Technology Trends to Watch For in 2022 Explore More

Blog

5 Benefits of Optical Character Recognition in the Classroom

Optical Character Recognition (OCR) goes beyond just processing documents and boosting businesses...

5 Benefits of Optical Character Recognition in the Classroom Explore More

Blog

Facial Recognition to Reshape the Retail Industry in 2020

The explosion of facial recognition technology in our smartphones – for instance in iPhone ...

Facial Recognition to Reshape the Retail Industry in 2020 Explore More

Blog

Mobile Banking Adoption and the Rising Fraud Concerns Worldwide

People have been repeatedly talking about the COVID-driven digital “transformation” in the bankin...

Mobile Banking Adoption and the Rising Fraud Concerns Worldwide Explore More

Blog

Shufti Turns Three – A journey of building trust globally

October 31, 2020, marks the third anniversary of Shufti and three successful years of buildin...

Shufti Turns Three – A journey of  building trust globally Explore More

Blog

5-Steps to Improve Customer Due Diligence Process

The digital age has witnessed a new wave of financial fraud. It is estimated that $4.7 trillion o...

5-Steps to Improve Customer Due Diligence Process Explore More

Blog

The Evolution of Video KYC: Revolutionise the Fintech Industry

FinTech encompasses financial organisations’ use of computing and communications tools to b...

The Evolution of Video KYC: Revolutionise the Fintech Industry Explore More

Blog

Top 10 Identity Verification Trends to Look Out for in 2022

Did you know identity fraud is growing at a faster than ever rate? Businesses across the globe ar...

Top 10 Identity Verification Trends to Look Out for in 2022 Explore More

Blog

Know Your Patient – Eliminating Fraud and Crime in the Healthcare Sector

The digital transformation has reached the healthcare sector with new remote onboarding options f...

Know Your Patient – Eliminating Fraud and Crime in the Healthcare Sector Explore More

Blog

Balancing UX and Security in the Finance Sector with Biometric Authentication

The global coronavirus outbreak transformed financial operations and forced retailing banks to te...

Balancing UX and Security in the Finance Sector with Biometric Authentication Explore More

Blog

Politically Exposed Person – An unsaid threat to Businesses

A politically exposed person or PEP is the one who has been assigned to perform prominent public ...

Politically Exposed Person – An unsaid threat to Businesses Explore More

Blog

Working from Home Spikes Demand for Digital Identity Verification

Due to the Coronavirus Pandemic, many businesses are grounded or are enforced to work from home. ...

Working from Home Spikes Demand for Digital Identity Verification Explore More

Blog

Anti-Money Laundering Screening – Enabling Financial Institutions to Handle Suspicious Activities

Financial crime is becoming a global concern, yet it’s often tough to spot. That is why gov...

Anti-Money Laundering Screening – Enabling Financial Institutions to Handle Suspicious Activities Explore More

Blog

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening

In November 2021, the market capacity of the cryptocurrency went over $3 trillion. With the incre...

Protecting Crypto Ecosystem with Effective Compliance Measures and Robust AML Screening Explore More

Blog, Business Technology

What Due Diligence Means for Your Business

Due diligence is a process that helps banks and individuals to get to know in detail who they are...

What Due Diligence Means for Your Business Explore More

Blog

Travel Industry – Trends, Scams, and a Solution to Combat Fraud

The modern world is filled with surprises for everyone nowadays. Be it individuals or enterprises...

Travel Industry – Trends, Scams, and a Solution to Combat Fraud Explore More

Blog

Hazards of Ransomware are real for Cryptocurrency Miners

Cryptocurrency may well be the future of economic landscape and it has the potential of taking th...

Hazards of Ransomware are real for Cryptocurrency Miners Explore More

Blog, Financial Crime / AML, Online Marketplace

Billion Dollar AML Compliance Plan for the Financial Sector

The financial services sector has long been blamed for the spread of financial crimes like money ...

Billion Dollar AML Compliance Plan for the Financial Sector Explore More

Blog

Covid Test Verification To Facilitate Tourism Worldwide

Due to the coronavirus pandemic, tourism has been adversely affected and the entire travel sector...

Covid Test Verification To Facilitate Tourism Worldwide Explore More

Blog

5 Key Questions About KYC Compliance to Look Out for in 2021

With the COVID-19 pandemic bringing challenges every day for businesses, the rate of identity fra...

5 Key Questions About KYC Compliance to Look Out for in 2021 Explore More

Blog

Transaction Monitoring: Going Beyond AML Screening

Whether you are an accountant in Wall Street or a developer for Google, money laundering will not...

Transaction Monitoring: Going Beyond AML Screening Explore More

Blog

Strategic Evaluation and Elimination of Money Laundering in Real-Estate Sectors

The exchange of illicit money through real estate has been the most commonly encountered method o...

Strategic Evaluation and Elimination of Money Laundering in Real-Estate Sectors Explore More

Blog

Identity verification in freelancing- no more smoke and mirrors

Freelancing platforms are rapidly growing. In 2017, around 57 million Americans were freelancing ...

Identity verification in freelancing- no more smoke and mirrors Explore More

Blog

Impact of California Consumer Privacy Act on Online Businesses

California consumer privacy act has been revolutionizing consumer data regulations. The act was p...

Impact of California Consumer Privacy Act on Online Businesses Explore More

Blog, Identity & KYC

KYC/AML Compliance in light of FinTRAC

Witnessing the updated AML/CTF regime; the guidelines by FinTRAC regarding ID verification have b...

KYC/AML Compliance in light of FinTRAC Explore More

Blog

Merchant Onboarding – Evaluating the Best Practices to Onboard Risk-free Partners

Partnering with the right people who can actually help your business grow is quite a tedious task...

Merchant Onboarding – Evaluating the Best Practices to Onboard Risk-free Partners Explore More

Blog, Business Technology

The demand for OCR Technology increasing for ID Verification

ID verification is core to overall identity verification services that help business around the g...

The demand for OCR Technology increasing for ID Verification Explore More

Blog

Identity verification solutions to fight against faces of fraud

In this digital world, billions of smart devices are circulating, connecting and communicating wi...

Identity verification solutions to fight against faces of fraud Explore More

Blog

EDD in Banking: Going Beyond CDD to Establish Trust in the Digital Age

With technological advancement, hackers are also becoming smarter to bypass verification processe...

EDD in Banking: Going Beyond CDD to Establish Trust in the Digital Age Explore More

Blog

Securing Business Operations with Address Verification in 2024

A key component of enhancing customer service and reducing fraud is gathering and validating addr...

Securing Business Operations with Address Verification in 2024 Explore More

Blog

FATF’s High-Risk Jurisdictions [2022 Update] – How Business Can Comply

Paris-based global watchdog FATF (Financial Action Task Force) maintains lists of countries that ...

FATF’s High-Risk Jurisdictions [2022 Update] – How Business Can Comply Explore More

Blog

Securing Digital Landscape with Electronic Identity Verification Services in 2023

With a surge in identity document forgery, the likelihood of onboarding a criminal has grown subs...

Securing Digital Landscape with Electronic Identity Verification Services in 2023 Explore More

Blog

The Latest AML Violations and the Role of Transaction Monitoring

In the evolving regulatory landscape, combating financial crimes has become a top priority of reg...

The Latest AML Violations and the Role of Transaction Monitoring Explore More

Blog

Fighting ID Fraud in the Healthcare Industry With Online ID Verification

While the coronavirus outbreak has emerged with a lot of challenges for the healthcare industry, ...

Fighting ID Fraud in the Healthcare Industry With Online ID Verification Explore More

Blog

Adverse Media Screening | Assessing and Mitigating Potential Crime Risks

In today’s digital world, where fraud prevails exponentially, risk management is crucial to fight...

Adverse Media Screening | Assessing and Mitigating Potential Crime Risks Explore More

Blog

ID Verification for Ultimate Subscription Fraud Prevention

Cellular phones were first introduced in the consumer market in 1973 when Motorolla first introdu...

ID Verification for Ultimate Subscription Fraud Prevention Explore More

Blog

Online Marketplaces and Increasing Crimes – How Shufti KYC Solution Can Help

With technological advancements and emerging innovations, online marketplaces have been digitized...

Online Marketplaces and Increasing Crimes – How Shufti KYC Solution Can Help Explore More

Blog

Securing Telehealth Services and Fighting Identity Fraud with Shufti’s ID Verification Solution

The telehealth industry has been completely revolutionized by services ranging from medical essen...

Securing Telehealth Services and Fighting Identity Fraud with Shufti’s ID Verification Solution Explore More

Blog

Money Laundering in the Metaverse – NFTs, DeFi, and the Role of Shufti’s AML Solutions

For more than a decade, the metaverse concept has been picking up pace, and the world is preparin...

Money Laundering in the Metaverse – NFTs, DeFi,  and the Role of Shufti’s AML Solutions Explore More

Blog

Facial Biometric Authentication for Online Dating Platforms – Building Trustworthy Relationships

Online dating apps have altogether transformed the concept of socializing, and people are now int...

Facial Biometric Authentication for Online Dating Platforms – Building Trustworthy Relationships Explore More

Blog

Legal Entity Identifier (LEI) — What it means and how it helps financial institutions?

The need for trusted digital communication in this age is crucial due to increasing cybercrimes. ...

Legal Entity Identifier (LEI) — What it means and how it helps financial institutions? Explore More

Blog

Estonia’s AML Act Amendments – Securing Virtual Currencies in 2022

Estonia’s financial institutions are developed and ensure transparency as its laws are well-defin...

Estonia’s AML Act Amendments – Securing Virtual Currencies in 2022 Explore More

Blog

NFC Verification – Securing Large-scale Events from Frauds

Large-scale events are a great way for imposters to execute their illicit plans. Data breaches, m...

NFC Verification – Securing Large-scale Events from Frauds Explore More

Blog, Identity & KYC

Why You Need to Verify Identity Online

5 Unusual Ways Stolen Identities Can be Used Online The need to verify identity in the digital sp...

Why You Need to Verify Identity Online Explore More

Blog, Fraud Prevention

ID Verification Trends to Curb Online Frauds

Automated Identity Verification Can Play a Significant Role in Fraud Management Fraud management ...

ID Verification Trends to Curb Online Frauds Explore More

Blog

Cyber Monday Scams on the Rise Due to COVID-19

Thanksgiving – a day that reminds us of all the bounties of Mother Nature that we should be...

Cyber Monday Scams on the Rise Due to COVID-19 Explore More

Blog

The Vital Role of AML Compliance for P2P Lending

Archiac banking traditions saw loan applicants held in suspense, waiting for lengthy periods of t...

The Vital Role of AML Compliance for P2P Lending Explore More

Blog

On-Premises vs Cloud Services – Two Sides of the Same Coin

With the advent of technology, industries are streamlining all their processes and ensuring highe...

On-Premises vs Cloud Services – Two Sides of the Same Coin Explore More

Blog

Merchant Onboarding – Evaluating the Best Practices to Onboard Risk-free Partners

Partnering with the right people who can actually help your business grow is quite a tedious task...

Merchant Onboarding – Evaluating the Best Practices to Onboard Risk-free Partners Explore More

Blog

Strengthening digital businesses with online age verification

It is projected that by the end of 2021, 2.4 billion will buy products and services online, up 46...

Strengthening digital businesses with online age verification Explore More

Blog

Shufti’s Ongoing AML Solution to Prevent Transaction Laundering

Online financial criminals are always finding newer ways to exploit financial infrastructures in ...

Shufti’s Ongoing AML Solution to Prevent Transaction Laundering Explore More

Blog, Business Technology

The demand for OCR Technology increasing for ID Verification

ID verification is core to overall identity verification services that help business around the g...

The demand for OCR Technology increasing for ID Verification Explore More

Blog

Age Verification Solution – Restricting Minors from Becoming Mules

From playing online video games to betting on horses, the digital gaming and gambling industry is...

Age Verification Solution – Restricting Minors from Becoming Mules Explore More

Blog

Japan’s AML/CFT Assessment – August 2021 Report

Financial crime is soaring sky high with digitisation becoming a part of our daily lives. Cyber a...

Japan’s AML/CFT Assessment – August 2021 Report Explore More

Blog, Reg Tech

GDPR Phishing Scams – A Novel Trap to Scoop up Information

General Data Protection Regulation (GDPR), an EU regulation comes into force on 25 May 2018 and a...

GDPR Phishing Scams – A Novel Trap to Scoop up Information Explore More

Blog

KYC screening vs One time passwords – what’s good for your business?

Customer due diligence sometimes tests the nerves of strategists and compliance officers. With mu...

KYC screening vs One time passwords – what’s good for your business? Explore More

Blog

Top 6 trends in Anti-Money Laundering for 2020

To enhance the scope of AML compliance, new regulations were brought into force throughout last y...

Top 6 trends in Anti-Money Laundering for 2020 Explore More

Blog

AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4]

This blog covers the last chapter of our four-part series on AUSTRAC’s money laundering and terro...

AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4] Explore More

Blog

UK Watchdogs Hit Financial Institutions with Record AML Fines in 2021

A dramatic increase in Anti-Money Laundering (AML) fines was seen in 2021 as financial watchdogs ...

UK Watchdogs Hit Financial Institutions with Record AML Fines in 2021 Explore More

Blog

Acquiring a Security Foothold in Hybrid Workspaces with Facial Recognition

In 2020, companies experimented with different ways of working as the result of lockdown and Covi...

Acquiring a Security Foothold in Hybrid Workspaces with Facial Recognition Explore More

Blog

The Top 10 Benefits of the Know Your Customer Lifecycle

In this digital age, where transactions occur remotely and identity theft is rising, establishing...

The Top 10 Benefits of the Know Your Customer Lifecycle Explore More

Blog

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution

The digital world is evolving at a greater pace than ever before. The Metaverse is considered a d...

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution Explore More

Blog

AML Non-Compliance Penalties Soaring Sky High in the First Half of 2021

After the skyrocketing fines and penalties on banks for AML non-compliance in 2020, the year 2021...

AML Non-Compliance Penalties Soaring Sky High in the First Half of 2021 Explore More

Blog

Disruptive Fintech Trends 2020

Fintech has changed the way consumers access their finances. From mobile payment apps to insuranc...

Disruptive Fintech Trends 2020 Explore More

Blog

Document Authentication | Streamlining Onboarding, Compliance & Fraud Prevention

Before the world experienced digitisation due to the advent of smartphones, fast-speed internet, ...

Document Authentication | Streamlining Onboarding, Compliance & Fraud Prevention Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started