Here, we’ll look at how Fintech could help get the economy back on its feet.

The economy has taken a significant blow in 2020 due to the COVID-19 pandemic. With countries across the world continuing to lock down in a bid to control the virus, it further threatens the economy.

However, one thing that could prove pivotal to economic survival, is Fintech’s. Here, we’ll look at how Fintech could help get the economy back on its feet.

Stepping up where usual business practices fell through

One of the main ways Fintech has helped during the coronavirus crisis, is it has stepped up where usual practices have fell through.

Retail and hospitality businesses have particularly felt the benefits of Fintech throughout the lockdowns. They have been able to switch to accepting online payments, helping them reduce money handling and customer contact.

Fintech has made sure thousands of smaller businesses have been able to continue trading during lockdown. As businesses can still take payments and deliver a socially distanced service, this is greatly going to help boost the economy.

Offering easier, faster transactions

One benefit of Fintech that both consumers and businesses get to enjoy, is easier, faster transactions. With Fintech payments, consumers don’t need to log into their bank accounts to pay for the goods they buy.

Mobile payments have become the norm, with mobile wallets offering a secure and fast payment method. They also offer a contact-free payment option and are encrypted, making the personal data almost impossible to steal.

Helping to support SME’s through funding

Perhaps the best thing about Fintech is that it can help small businesses get access to the funding they need. Experts like Nucleus commercial finance can help those left out by the government. When the range of financial help was unveiled, millions of SME’s found they weren’t eligible for support.

Fintech lenders don’t use traditional metrics to assess a lenders eligibility. This means, newer businesses which have only started trading in the past year, have the same chance of gaining funding as an established business. This levels the playing field at a time when small businesses need it the most.

These are just some of the ways Fintech’s are helping to kickstart the economy. The pandemic has had a significant negative impact on the business sector. However, Fintech has helped to cushion the blow somewhat. Now as we look to control the virus and get the economy back on its feet, the technology is going to be key to our recovery.