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Why fintechs were COVID-19 ready The organizations which had "re-
paired their roof while the sun was
By Ray Brash shining" — in that their digital opera-
tions were continuously innovating,
PPS pandemic or not — have been most
effective in helping their customers
uring his 1962 State of the Union Address, John F. Kennedy and reacting to the demand. After all,
declared, "The best time to repair the roof is when the sun is shin- if you have a clear and agile road map
ing." While the philosophy behind the sentiment wasn't intended that is able to constantly evolve, it is
D for organizations, per se, it's an apt quote when reflecting on fin- much easier to adapt, rather than re-
techs in light of COVID-19. start. Fintechs and challenger banks
aren't adapting on their own though.
We are all aware that the pandemic has shut down our normal way of life, and
with it, a quarter of UK businesses, according to the Financial Times (www. Swift action through
ft.com/content/f9537538-d7a0-44e3-8e86-5cb9a984aae4). Concurrently, it has existing partnerships
accelerated the shift to digital and contactless payments, as businesses have Rather, partnerships have never been
had to embrace new ways of supporting customers.
more important. Indeed, an outcome
Since the dot.com crash of 2001 and the financial crash of 2008, fintech of COVID-19 is likely to be the con-
entrepreneurs have adopted a disruptive mindset to make headway, and tinued acceleration of these partner-
ships that make the impossible, and
survive, within financial services, launching innovative offerings such as
mobile-only banks, with money management tools and personalized saving even the improbable, possible.
solutions. It's this continued innovative approach that has enabled fintechs, or
businesses using fintech solutions and tools, to prevail during COVID-19. It's Sainsbury's is one example of the
power of partnerships. Due to having
the companies that already had the agile architecture and payment platforms
in place who have been in the best shape to adapt. its digital architecture in place, Sains-
bury's was able to launch its Volun-
teer Shopper Card just a few days
into the lockdown, enabling others to
shop on behalf of vulnerable citizens.
The supermarket chain is seeing a
whole range of digital vouchers com-
ing into their own in the era of remote
food distribution.
Tesco, another brick-and-mortar re-
tailer that already had digital tools
in place, has experienced increased
adoption of its Tesco Pay+ payment
app which allows for QR code pay-
ments and gifting of money to depen-
dants across the country for essential
purchases in Tesco stores.
Business banking fintech Tide also
adapted to help its small business
customer base. Responding quickly
to the governments Bounce Back
Loan Scheme and with financial
support arranged through an estab-
lished partnership, Tide, within a few
weeks, became an accredited lender,
lending from £2,000 to 25 percent
of an SME's annual turnover, up to
a maximum of £50,000 for up to six
years (for more details, see www.tide.
co/blog/business-continuity/update-on-
tide-bounce-back-loans-a-letter-to-all-
members-from-oliver-our-ceo/).
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