bankingciooutlook

3 Fintech Trends Likely to Continue After the Pandemic

Banking CIO Outlook | Wednesday, September 30, 2020

Even as bank branches and retail stores slowly open, customers still remain uncomfortable venturing through their doors. As customers experience the convenience of mobile applications, they may not go back to traditional banking.

FREMONT, CA: Since the coronavirus pandemic, many tasks have been moved online, and this has had an impact on the financial sector. Financial institutions are offering seamless digital services as bank customers look for online interactions that replicate in-branch experiences. There has been significant adoption of contactless payments among the tech-shy group of the population as they turn to apps to handle money.

Here are three fintech trends that will likely continue after the pandemic:

The Next Evolution of Payments

The pandemic has changed how people pay for things online and in stores. Customers shopping online are increasingly using digital payment platforms for seamless transactions.

During the beginning of the pandemic, some banks upgraded customer’s physical debit and credit cards to include “tap to pay” technology. Thus, for customers shopping in-stores, cashless and contactless payment will likely.

Consumer Opinion of Online Banking are Changing

Fintech is seeing a rapid increase of active users, which is accelerated by certain factors. Many people have experienced significant disruption during the pandemic, and solutions like budgeting apps have enabled them to take control and keep an eye on dangerous bank account balances. Some fintechs provide aid or relief programs, while some slash fees to serve a broader audience.

Even as bank branches and retail stores slowly open, customers still remain uncomfortable venturing through their doors. As customers experience the convenience of mobile applications, they may not go back to traditional banking.

Banks and Credit Unions are Mobilizing

Traditional banks and credit unions are mobilizing to enhance the customer experience online. Companies that have already set up mobile or online presence before the pandemic are performing better than those who had to create it after. With many businesses applying for Paycheck Protection Program (PPP) loans, some credit unions providing small business services have seen an increase in membership.

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