March 30, 2020

Use of fintech apps skyrockets as coronavirus lockdowns widen

By Lucy Ingham

Lockdowns and stepped-up social distancing across Europe due to the coronavirus have caused a dramatic surge in the use of fintech apps to assist with banking and finance over the last week.

This is according to independent financial advisory organisation deVere Group, which has found that the use of its fintech apps in Europe has risen 72% over the last week.

This is among existing clients; deVere also reports a sharp rise in enquiries from potential clients.

“The world has changed in the last few weeks. 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,” said James Green, divisional manager of Europe at deVere Group.

“A new era has already begun, with digitalisation and new technologies driving the shift.  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.

“Indeed, Zoom Video Communications has been a remarkable performer in recent times, with its shares gaining more 32% since the market began its decline in mid-February.”

Fintech and the coronavirus: “the new normal”

According to Green, fintech platforms have been gaining ground as a reliable source of financial information and support since the 2008 recession.

“Since the 2008-2009 financial crash, 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,” he said.

“In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of their money. It means personalised, on-demand services. It means lower costs.”

He anticipates fintech to become increasingly important as the coronavirus pandemic continues to bite.

“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,” he says.

“Fintech is fast-becoming the new normal.”

Read more: Coronavirus recession will produce “new world” driven by technology: deVere CEO

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