The word "unprecedented" has been used a lot in recent weeks by various authors to talk about the ongoing pandemic, and it's quite appropriate. At least in the UK, we have not experienced any comparable national memory crisis or event. We are in uncharted territory and as a nation we need to work together to flatten the infection curve and reduce the pressure on our NHS. While the next few months look tough for business owners, early signs suggest the situation is slightly more rosy for many fintechs. For example, DeVere reported a 72% increase in usage and, surprisingly, UK startup Glint App saw a 718% increase in online gold purchases. Business is booming, and it seems that fintech companies, far from being in trouble, may be one of the few types of businesses to emerge from the pandemic in a better position. Given all this, I would go so far as to say that it is the duty of fintech companies to examine how we can best support other companies in the difficult months ahead. Naturally, business owners are struggling due to the economic slowdown in recent weeks. In particular, the self-employed will need advice and the time has come for fintechs to step up. Here are some ways fintechs could help:
Continue hiring contractors
Times are decidedly tough and the argument to cut costs would make sense under normal circumstances. However, if your bottom line isn't in immediate jeopardy, why not continue to employ existing entrepreneurs and ensure important projects continue? With millions of people at risk of falling into the government safety net and just under a million people applying for universal credit in the last two weeks of March, it could save you a lot of pain and heartbreak. stress, taking the pressure off an overworked benefits system.
Realize the benefits of remote work
Unless you have a hospital, supermarket, or other business that requires in-person work, your team should already be working remotely. Once the initial disturbance wears off, are there positives to continuing with the new normal? You could say yes, meetings tend to be shorter and the overall costs of keeping the building open will be lower or non-existent.
Instead of letting go
The government has rolled out a new aid package for companies to eliminate the need to let go of their staff. If your business has fallen or completely stopped due to the coronavirus, the government has provided you with the means to continue paying your employees.
Be a great example of using technology to find solutions.
If you are the CEO of a fintech, you probably already know how to get started with VPN and Zoom. Don't assume everyone is as knowledgeable as you are and be ready to share your knowledge with other companies just starting out.
Consider paid vacations
If you offer a subscription service to companies, entrepreneurs or freelancers, ask yourself if you can offer troubled customers a break in payments for a few months. After all, if your client files for bankruptcy, you won't be able to pay him anyway, in which case no one will win.
Use your influence to make changes
If you run a successful business, you can be a powerful voice in helping others. Consider contacting your local Member of Parliament to lobby on behalf of businesses and the self-employed, in your area and beyond. You can also partner with other companies in your network and have a chat. We need a better deal for those who risk falling through the cracks, because when it comes to a national emergency like the one we're going through, we all stand together. Darren Fell is CEO and founder of Crunch