How Finance Businesses Can Adapt to Thrive in 2020

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Daniel GrovesBusiness Growth Consultant

Friday, October 16, 2020

COVID-19 has been a huge shock to the economy and organizations of all sizes have found themselves in trouble. When the economy suffers, it causes massive challenges for the finance industry as a whole.

Article 3 Minutes
How Finance Businesses Can Adapt to Thrive in 2020

This year, every industry has experienced market disruptions and both businesses and individuals have felt the effects. The good news is that there are ways finance businesses can adapt in order to not just survive the effects of the pandemic but thrive.

Understand that the problem is industry-wide

All businesses in the finance industry have found COVID-19 a challenging time, and even everyday activities have been difficult.

“As a direct result of the coronavirus pandemic, many lenders have staff unable to work, so they are unable to do the underwriting required to process new loan applications, this has been a huge issue for companies of all sizes, with both private individuals and companies struggling to get loans they really need at this difficult time.” - Jon Edwards of Guarantor Loans
 

This has caused a knock-on effect on customers and clients, but on an industry-wide scale. With this in mind, organizations need to find ways to adapt, whether that’s altering opening hours in order to accommodate the needs of clients or utilizing digital channels to deliver services.

Embrace digital finance solutions

Speed and efficiency are clearly the primary goals for every finance business, so many companies are switching to platforms that allow them to deliver a digital offering. The pandemic has transformed the way that individuals interact with businesses, so go with it.

In a world that is continually moving forward in terms of technological advancements, digital finance has followed suit, and this has meant that businesses need to become aware of how they operate financially in order to stay up to date and avoid being left behind. The digitization of financial services can lead to better customer service and relationship management, as well as offering a more convenient service.

Prepare for a cash-free economy

The move towards a cashless future has been accelerated as a result of COVID-19, but this can actually be an opportunity for finance businesses. With hygiene such a prominent issue right now, the use of cash has dropped considerably, and people are seeking ways to pay digitally.

But many people are still reliant on cash and local banking services, so finance businesses need to take a direct approach when educating customers and clients on how to move away from cash.

Financial management will become risk management

The primary learning that the financial sector needs to take away from the pandemic is that risk management needs to be a higher priority. There’s far less slack in the system now in terms of business improvement practices, and organizations need to understand that this means a greater risk to their business if something goes wrong.

While the future may seem digital, it still takes time and a lot of consideration to ensure that businesses make the right decisions going forward in terms of moving finances to a digital format. With this in mind, risk management should be treated as more important than ever before.

Reduce reliance on in-person finance solutions

COVID-19 has led to financial services changing irrevocably, with face-to-face interactions and transactions becoming a thing of the past. Going forward, the financial sector will be driven by technology and big data.

Consumers will expect to be able to manage their financial lives online, so businesses need to reduce their reliance on in-person services such as financial advisors and physical banking locations and find ways to offer these services in a digital format.

Final thoughts

Making the leap to a digital format can be daunting for business owners, but the pandemic has expedited the need. While the future is increasingly digital, companies still need to consider how they move to digital services in order to prevent any unnecessary risk.

Education and research, as well as diving deep into data, is key to ensuring that changes are as streamlined as possible and align with both the needs of customers and the goals of the organization.

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Daniel Groves

Business Growth Consultant

Daniel Groves achieved a 1st class honours degree in Business Economics. Since graduating, Daniel has collaborated with a number of online publications with the aim to further develop his knowledge and share his experience with like-minded entrepreneurs, business owners and growth strategists.

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