How has Fintech helped with battling Covid-19?

As the pandemic known as Covid-19 is changing the way we live our lives, there are a couple of innovative technologies that have made this transition period much easier. We don’t know much about this virus but so far it has completely turned the world upside down. Not only are we running a risk of overwhelming our healthcare systems and possibly losing thousands of lives to this virus, the effect that COVID-19 has had on the economy could easily be compared to the 2008 crisis. First and foremost the stock markets have had some of their worst days in decades, businesses all around the world both small and medium-sized establishments are closing down and millions of people are losing their jobs. Meanwhile, online traders have been trying to figure out a way to minimize the damage, with very little success, only some of the best ecn brokers coming out on top after the crash.

As the reality around us is changing, Fintech has actually managed to make this transition a lot easier here’s how.

Relocating to the digital world

Almost half of the world’s population is now practicing self-isolation. This means that interaction between humans is limited. This also means that the local businesses, restaurants and casinos and whatnot, basically all the places where public gatherings happen are closed down. In some countries, there are specific guidelines prohibiting gatherings that consist of up to 5-10 people.

This means that the businesses that rely on people coming in and spending time at these establishments, or the shops that are usually extremely crowded, are now starting to close down.

But because we have so many fintech options, a lot of these services can not be ordered online, giving the smaller communities a chance to keep their business open and operating, even if they only work for deliveries. Fintechs are used to make the transactions more convenient, by taking out the third party from the equations. You can pretty much order andy service, any product without ever leaving your house You can make transactions, pay your bills and even access your favorite types of entertainment online and all that without having to break the rules of self-isolation,

If we know one thing for sure, it's that if we didn’t have fintech technologies, not even half of the people who are currently following the rules of self-quarantine would be staying in their homes.

This might make half of the world sound bad, but we have gotten used to privileged lifestyles and we want to have all the services we had before. It is surprising how many people are still on the fence about following these guides because they are simply too stubborn to say no to their current lifestyle even for a few weeks or months

Fintechs are making self-isolation more likely

Fintechs have made self-isolation a much easier task and in hindsight have made the possibility of flattening the curve of this outbreak much bigger.

Social distancing is the most effective way to fight the spread of coronavirus and fintech has made this practice much much easier.

Online services that we can pay for through fintech are now practically covering every industry imaginable. These services have become such an essential part of our lives that we’ve started to take them for granted but in reality, we should really be appreciative of how easy it is to quarantine these days.

We can order our favorite food, we can watch the newest movies, we can get whatever we want from the shop delivered right to our door and this is only possible because of different financial technologies that have made money transfers easy and secure. 

This has also opened up conversations about how businesses that are operating online seem to be immune to this outbreak and in general, might become more sought-after in the future. Not only because of the convenience of scrolling through your options on the phone but because they are less susceptible to dangers like this. And while it’s important to mention that while they might be safe from the pandemic, they are not yet safe from cyber attacks. But apart from that, online businesses are much better suited for the modern customer and are more or less secure from pandemic but also other risks that land-based businesses often face. 

A lesson for the future

Fintechs have made the difference between living in self-isolation and living regularly minimal and therefore have made the possibility of people actually following the rules much higher. And even though fintechs can't replace all the aspects of regular life, we are still very lucky to be living in the time when we can purchase anything without having to physically be present at the store or use our physical cards or cash. 

Covid-19 will definitely leave a huge market of the world economy, it has already done so in many ways. But since the majority of the countries where outbreaks have been the most active, do have access to these services the likelihood of them containing the virus is much bigger, since at least some businesses will be able to continue to function normally, or at least partially through the delivery services and purchases made online, giving at least some support to the economy, which is crucial right now.