The novel coronavirus pandemic changed consumer behavior significantly. While experts agree that many of those changes are only going to last as long as the lockdowns do, some may be here to stay. Indeed, one effect seen across industries is that the outbreak seems to have accelerated existing trends in consumer preferences, and this is certainly reflected in how people view fintech.
For instance, nearly 3 in 5 Americans now say they use fintech apps to digitally manage their money more often than they did before COVID-19, according to a recent Plaid survey. Furthermore, almost as many said that they wouldn't have been able to keep closer tabs on their finances without the use of those apps, and almost 70% say they view the technology as a "financial lifeline" these days.
In fact, the survey found that close to three-quarters of respondents say the use of these apps is going to be their new normal, indicating a desire to keep using fintech in this way even after the current crisis is over.
Why it's important
There are plenty of reasons why this tech is coming to the fore these days, perhaps chief among them is how the economic downturn accompanying the pandemic impacted their finances, according to a Lightico poll from earlier this year. Nearly half of respondents said they saw their income drop by 20% or more, and 60% of households were worried about meeting their basic expenses.
Moreover, because of fears specifically related to the coronavirus, 55% of respondents said they would go to their local bank branches less than they used to, and more than a quarter noted they would stop going altogether, the survey found. Instead, close to 80% noted that they prefer to see their banks roll out more all-digital features, compared to just 47% who wanted more drive-thru and touchless banking options.
The same is true for business
At the same time as more consumers are getting on board, the fact is that businesses are getting a similar level of utility out of fintech these days, according to a global study from Goodwin. Altogether, 19% of respondents from the U.S. use fintech for banking and almost 1 in 3 use it for either accounting or financial services. Such technology was acknowledged to have had a "positive" or "high positive" impact for 74%.
Overall, 55% of decision makers in the field say they specifically use the internet to manage their companies' finances.
It seems that many of the major fintech developments are most likely here to stay — and as such, you need to have the right people at the right levels of your finance organization to help you meet evolving expectations. YES Partners can help you connect with these professionals. To see some of the roles that we have already successfully placed, click here.
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