Fintechs and banking should "hit needles" to overcome pandemic crisis

Fintechs and banking should "hit needles" to overcome pandemic crisis

A study by Portugal Fintech reports on the impact of isolation due to the COVID-19 pandemic on financial technology startups, highlighting the drop in sales, the postponement of project execution and consequent payments as the main consequences of this crisis in the sector.

The questionnaire numbers show that 71% of fintech startups had a significant drop in their sales and 29% claim to have lost a value equal to or greater than 50% of their revenues. It is also mentioned that startups that were raising capital had to stop the process or are experiencing a significant slowdown in it.

The Association presented some solutions to accelerate the execution of the projects, including the association of the fintechs with large groups in the financial industry to overcome the pandemic and accelerate the digitalization of the industry.

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In the diagnosis made by Portugal Fintech, the main difficulties of startups point to the decision process of customers, the lack of visibility of their solutions before incumbents and the lack of a cooperation channel between them. Considering that startups have little revenue, but great technological potential to accelerate and improve the digitalization of the financial industry, the creation of bridges between fintechs and banks, which need this technology, is a priority.

To exemplify and give insight into the technological potential of startups, a list was created, the Fintech Solutions List, which works as a catalog of solutions to leverage the incumbent's digital channels and matchmaking between fintech, banking and insurance companies. Digital account opening, digitalization of subscriptions, insurance optimization solutions, such as auto insurance with pay-per-mile payment methods, use of artificial intelligence to manage high traffic peaks on digital channels, were suggested. customer service. The digitization of payment receipt processes is another proposed solution.

To present the solutions, a free webinar will be held (but requires registration at the following address), next Wednesday, April 22, at 3:00 pm.