Crises accelerate the adoption of new technologies. After the emergence of COVID-19, financial technology (fintech) companies focused on new features such as using debit to grow lending, savings, and apps. To know more about the current reality and discover the right merchant funding for your own specific business needs, don’t look any further.
FinTechs & Merchant Funding
Back in 2008, a large number of customers of traditional financial institutions switched to the fintech sector because of the existing financial crisis. As a result, banks started paying more attention to their technology and investing more in digital strategies.
Today, when the world is facing another financial crisis caused by COVID-19, financial companies place a focus on new features as consumers are changing their buying and paying habits. You can find many lenders attaching a debit account to their lending app to offer fund deposits into the account and an ability to access those funds using via a debit card. This allows lenders to increase the lending product value.
COVID-19 is serving as a boost that fintechs need for becoming more widespread among consumers who haven’t been willing to move their finances online. When it comes to online lending, be aware that loan issuance grew by 21% during the period from June to July.
Currently, so many small business owners and entrepreneurs are going through uncharted waters because of the economic uncertainty caused by COVID-19. The surge in fintech lending makes it extremely important for merchants to figure out which company they’re working with.
To enjoy the most reliable and cheapest merchant funding, you need to find a trustworthy provider in your field. That’s where reputable alternative online lenders step in.
FinTechs Expanding Access to Banking Services
Fintech firms have been expanding their access to banking services for more than 10 years. Now, they’re focused on new features to grow. E.g., they consider debit as a value-added feature and place a special focus on lending, investing apps, and savings. Digital lending platforms and investing apps have surged in popularity during the COVID-19-related lockdowns.
Data analysis company App Annie has reported that Japan, South Korea, the U.S., and China witnessed the biggest surge in time spent on fintech apps during the 1st week of March this year compared to the last week of 2019.
So, fintechs have been growing their access to banking services in the recent decade, and now, COVID-19 has opened up new opportunities for them to grow even more rapidly through the digitization of finance.
Author Bio: Michael Hollis is a Detroit native who now lives in Los Angeles. He is an account executive who has helped hundreds of business owners with their merchant funding solutions. He’s experimented with various occupations: computer programming, dog-training, scientificating… But his favorite job is the one he’s now doing full time — providing business funding for hard working business owners across the country.