Coronavirus-triggered social distancing, isolation and lockdowns have driven-up the use of financial apps in Europe by 72% in a week.
The sharp increase in the use of financial technology comes as the world readjusts to life fighting against the global health crisis and economic downturn caused by the Covid-19 pandemic.
The data is from deVere Group, an independent financial advisory organisation. James Green, the group’s divisional manager of Europe said a new era has begun:
“This new era has been evidenced this week with a staggering 72% jump in the use of our fintech [financial technology] apps from existing clients and a sharp increase in enquiries from potential ones.”
“Digitisation and new technologies are driving the shift”
Digitalisation and new technologies are driving the shift in this new era. This can be seen by demand soaring for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more people from ever work remotely.
“The world has changed in the last few weeks,” Green said. “The measures we’re now all taking to help the fight back against coronavirus are affecting the way we interact, live, work, and take care of our finances.”
“Since the 2008-2009 financial crash,” Green went on, “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, round-the-clock 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.”
Fintech is fast becoming the new normal, Green said:
“Fintech – a significant driver of the so-called ‘fourth industrial revolution’ – is going to become an increasingly dominant part of our lives and coronavirus is fuelling the shift.”
I believe it’ll have a positive impact, notes Green. Why?
“Because it is meeting evident and growing client demand for on-the-go service, it is speeding up the advance of financial inclusion across the world, plus it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and further enhance the client experience.”