How is COVID-19 reshaping the FinTech industry?

The financial services industry could look very different a few years from now, thanks to COVID-19 accelerating several emerging trends in FinTech.

Since the start of COVID-19, there have been many success stories of financial technology companies (FinTechs) meeting consumer demands as a result of lockdowns, such as buy now pay later business models like Afterpay. Afterpay’s underlying sales increased by 112 per cent from A$5.2 billion to A$11.1 billion.

At the same time, the number of active global customers – that’s across Australia and New Zealand, the US and UK – grew by 116 per cent to 9.9 million, according to its full-year results to 30 June 2020.

However, not all FinTechs have witnessed similar results, with some struggling to survive in the current economic climate.

“Only those businesses that are amalgamated with existing digital payment infrastructure are better able to offset the adverse economic effects of COVID-19,” said Associate Professor Kingsley Fong, former deputy head of the School of Banking ＆ Finance (UNSW).

A/Prof. Fong initiated the Financial Technology courses and programs at UNSW Business School, including Australia’s first undergraduate specialisations in Financial Technology, postgraduate specialisation in Master of Commerce and Master of Finance, as well as a fully online Master of Financial Technology, in recognition of high industry demand for FinTech expertise.

With digital adoption accelerating, the ability for businesses to adapt well to digital channels will be crucial to their success in the future.

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Source: How is COVID-19 reshaping the FinTech industry? | UNSW Newsroom