How are Financial Businesses Overcoming Crisis & Planning for Future Post COVID-19?

Anusree Bhattacharya | January 11, 2022

How_are_Financial
Businesses worldwide have to react in agile and decisive ways to meet the challenges due to the pandemic. As time moves on, now is the time for financial businesses to seek out and seize the burgeoning opportunities emerging in the financial crisis recovery. The action of recovery involves conducting a review and then collecting data and taking insights on the lessons learned from the pandemic. After that, financial firms can prioritize actions to enhance their business value and build strategic resilience in the future.

Despite certain plans of action to overcome the economic impact of COVID-19, the rebound is anticipated to be uneven across the globe, as developing economies lag behind. Yet, global financial growth is expected to accelerate to 5.6% by 2023.Accelerations from holders of major economies such as China and the United States will be significant.

So, how are financial businesses overcoming the economic crisis post-COVID-19? How are they planning for the future economic setup? What are the steps they are taking to deal with the crisis?
Let’s read ahead about it.

Dealing With the Crisis

During the pandemic, it was a scenario where not all financial services firms leveraged their plans to overcome in analogous ways. The global market study shows that about a quarter of financial services firms relied on their surviving business continuity plans to manage through the crisis. Rather, only 16% of finance firms used modified plans to deal with the crisis. And their plans worked well.

But now, surprisingly, the firms that couldn’t do well in handling the global recession are doing well now. And thus, they found some of the most common gaps at the backend. The gaps were in the ability to anticipate responses in the plans, which were specific to the pandemic.

The ability to leverage technology usage, stringent operational controls, and practicing digital capabilities were some of the major gaps that resulted in a major mishap for several financial firms. Let’s see some highlights of how firms saw failure in their plans.

According to Deloitte’s survey:

  • 59% of financial businesses did not include pandemic-specific actions
  • 34% of financial businesses found gaps in addressing technology
  • 16% of financial businesses found gaps in stakeholder communications
  • 16% of financial businesses lacked plan alignment
  • 9% of financial plans were outdated
  • 10% of financial plans were not actionable and impractical

Customers also mentioned technology challenges, especially when it came to dealing with surged demand for loans as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

But, with that in mind, here’s an outline of some of the scenarios emerging in favour of financial businesses and firms.


Firms Are Developing Emergency Plans

Several financial firms are now creating contingency plans in anticipation of an uncertain global economic recovery. The plans are to manage the crisis through disruption and focus on strategies and operational activities. These plans are now under action, which is now more strategic in nature.

Of the plans, firms are mostly planning or operational contingencies over the next six months of 2022. According to Deloitte’s reports, almost 40% of firms expect a need for the same.


Digitalization of Communications & Interactions

Moving forward, what financial firms have learned is to include digitalization in communications and interactions with clients and customers as a part of crisis management. Digitalization will enhance existing resilience plans.

Many other firms believe that digitalization is one of the priorities for better coordination, more comprehensive documentation and stimulating more frequent compliance-focused finance exercises. Assessing requirements for critical workloads and reassessing the global financial crisis recovery is also top-of-mind.

For example, TODO1/iuvity’s solutions will have the digital financial experience powered by Modyo integrated with TODO1/iuvity’s Open Service Platform by the end of 2022. TODO1 is a leader in powering essential digital financial institutions in Latin America. The services have served more than 21 million digital customers in the past twelve months.

This partnership is aligned with our goal of working with exceptional talent to build state-of-the-art products. We are excited to join forces with Modyo to continue being at the forefront of user-centric technologies that empower businesses to better serve their customers."
 

Felipe Uribe, CEO of TODO1

Let’s understand how firms identified digitizing clients’ interaction and communication as a top priority.

Deloitte’s study says,

  • 40% of financial firms are rethinking and digitizing client interactions
  • 42% of financial firms have technology upgrades
  • 24% of financial firms are using digital to redesign plans and operations
  • 11% of financial firms are revising third-party partnerships


Technology Investment

Financial firms, along with technology, are anticipating increasing capabilities around upgrades in operations, systems, internal and remote communications, and client interactions. Firms also anticipate doubling the speed of technological transformation over 2025. These initiatives include increased investment in cloud technology, data center evolutions, smart tool use to improve business agility, communication, analyses of data, reporting, onboarding, servicing automation. All of these (including more tech tools) will aid firms in responding to a range of potential future developments. 

For example, ixFintech has come up with a successful integration of privacy identity authentication and post-quantum computing security into ixWallet. The initiative is to safeguard users' identities against cybersecurity risk. In Q1 2022, the company also aims to launch ixPoint, its first-ever reward point scheme, as well as the first asset-backed TeaCoin.

With those priorities in place, financial institutions now have the opportunity to develop an integrated monitoring process. The process collectively captures data from various other systems across organizations, such as physical security, fraud, threat, cyber and other issues.


Redesigning of Controls

Many financial firms have learned from the economic impact of COVID-19 that controls will need to be redefined to function with a remote workforce. As the aftermath of COVID-19 has forced the finance industry to operate its services remotely, this step counts under the priorities that businesses are focusing on shifting. So, the most critical controls, such as process, preventive controls, and fraud control, mainly rely on improved workflow tools with the help of technology and digitalization. These controls are considered with the help of visual risk-sensing and machine learning capabilities.

If you own a financial business and are looking for a real-time action plan to recover from the global financial crisis, then the above-mentioned steps will assist you in managing your business well. Still, some tips for financial crisis management could be added along with those steps.


Tips to Manage the Financial Crisis


Always Arrange an Emergency Fund

Being prepared for all types of circumstances aids in managing a crisis, even if it is a pandemic. So, having an added emergency fund to your business’s account will avoid any disaster that might occur at any time. Emergency funds will help you get through various liabilities such as utility payments, rents, payroll, vendors, taxes, and many other financial roles.


Manage Debts Effectively

It is necessary for you to manage your debts effectively. But how? You can keep track of the repayment of debts. To manage or repay the debt on time, you can build a separate fund account that would cater only to the debt amount. In this way, you’ll be able to track, manage, and get the right information on the amount to repay.


Monitor the Money Flow

If you monitor the flow of money in your financial business, you will be able to recover from the harsh economic impact of COVID-19 faster. Keeping a check over expenses—profit and loss would certainly help you overcome a crisis.

While the entire financial industry is recovering, this is the time to document the lessons learned and emerge stronger than before. If you are still struggling, you can use the plans for quick recovery from the impact of COVID-19 on your financial business.


Frequently Asked Questions


What is a financial crisis?

A financial crisis occurs when a firm’s assets decrease significantly in valuation. As a result of this, firms face hindrances and troubles in meeting their needs and requirements.


How do businesses affect the economy?

Firms create employment opportunities for themselves and willing employees. So, entrepreneurial activities such as the introduction of new products, methods of business, and production processes influence productivity and thus boost competition among their peers, which affects the economy.


How can businesses help the economy recover?

Businesses can drive economic stability and growth significantly. They can do it by providing valuable products, services, and tax payments that directly contribute to the economy. These aspects then lead to more jobs, and thus, strengthen the global economy.

Spotlight

MicroVest Capital Management, LLC

MicroVest was created as a capital-mobilizing intermediary for microfinance institutions (MFIs). We are organized along commercial lines with a strong private sector board. Our objectives are: •to provide capital to microfinance institutions; •to help build capital markets for the micro-enterprise system; •to support self-sustaining financial institutions that serve the poor. MicroVest seeks partners to help make financial markets work for poor entrepreneurs of the world by linking capital markets and MFIs.

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Practice Charitable Contributions Under corporate tax planning, it is essential to contribute to charitable institutions. This can help to gain maximum tax benefits. Some of the charitable contributions that can be included are: Stock donations Private foundations Investment in funds Cash donations Charitable trusts The type of charitable contribution and the kind of asset donated are factors that can help corporates with tax reduction. Donations to a charity for education, non-profit organizations, foundations, and others certainly qualify for tax deductions. In this case, the IRS Tax Exempt Organization Search tool can benefit by verifying an organization’s tax-exempt status and determining its eligibility for deductible contributions. If corporates include charitable donations in their tax planning, then it can be a significant mode of tax return and savings at the same time. 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Article | March 1, 2022

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Effective ways to humanize your brand are: Engage and interact Share videos Create blogs and posts regularly Leverage data Connect with social media influencers Millennials prefer brands that connect emotionally and focus on creating more relatable content. Use simple language, avoid using technical jargon, create content that shows care and concern towards the end-user, publish case studies, host podcasts, and create marketing videos. Generate Content for Various Campaigns There are different ways for you to use content for lead generation. You need to realize that there is no one-size-fits-for-all solution for campaign content. Depending upon the market and your business's nature, one method may be more effective than the other. Once you have figured out what people want, you need to generate content that gives them what they want. Now that you have the list of keywords, start creating gated content such as articles, infographics, videos, podcasts, e-books, white papers, reports, checklists, cheat sheets, free email guides, webinars, product demos & trials, and sales materials. Writing high-quality content is the foundation of an effective lead generation campaign. To create quality content, you need a sound content strategy and a specific buyer persona in mind. Apart from creating a solid piece of content, graphs, images, quotes, and infographics lead to a more effective campaign. According to a study, 67% of customers consider clear and detailed graphics ahead of product descriptions and ratings. The best kind of content allows readers to connect with the information added. Also, the writer should present critical information early to ensure readers get to the point before they opt-out. Investing in high-quality content will pay-off in the form of successful campaigns and more leads. Here are some of the best content ideas for lead generation. Giveaway a checklist of tools or lists of resources eBooks & Free Reports Webinars Discounts & Coupons Free Trial Quizzes Mini-Courses Free Challenges Syndication of Content B2B content syndication is when digital content such as whitepapers, blogs, and videos are re-published to a third-party website. Content syndication works excellently for lead generation for a B2B company. It will give your business and content extra exposure to increase brand visibility with minimal effort that you wouldn't typically get while just hosting it on your website. Distribution of content promotion to generate new leads from prospective customers will always remain the top priority for B2B marketers. Having unique web-page content with none to little traffic on websites is wasting your idea as no one will ever read it. To this, content syndication is the answer. A landing page provides more context for the product/service featured in your ad or social media post. As the user lands on the landing page, they need to see what they get when they sign up. A landing page should exclusively focus on one specific offer by using eye-catching imagery, action-oriented copy and a clear next step. Do's Don't Minimal copy with bullet points Add too much text Security badges Add social media handles / social media share button Free aspect added to the call-to-action button Use too many jargons Add a form or call-to-action button Add links Add multiple/ big call-to-action buttons Offer non clickable phone number No points of exit Add copyright signs Add a mobile number or click-to-call Add clients, testimonials & awards Add a free preview, screenshot images, stats, and video for demonstration. Add guest photos Add guest photos Add a form or call-to-action scrolling with you Email Marketing Email marketing has been used by B2B businesses for a while now. It is one of the powerful tools for marketing and communications. According to a survey, email marketing is the most effective online tactic for lead generation. 91% of businesses prefer email marketing for demand generation. A good lead generation strategy will have lasting benefits, such as allowing you to target your desired customers and boost brand awareness. Lastly, more lead equals more customers and, ultimately, more revenue. Create a FinTech Forum The invention of the internet has erased all the geological boundaries for doing business. Local businesses can turn into potential global competitors. Online forums have enabled people to connect online based on their likes, interests, beliefs, or preferences. You can also create an online forum or online community to interact with like-minded people who can turn into customers. These online forums are of great help for businesses. They allow both your existing and potential customers to interact and discuss; while helping you trouble-shoot flaws or errors. Virtual Event - Webinars /Podcasts / Live-streaming / Guest Posts The coronavirus outbreak has changed how the world works and will work for the foreseeable future. Many companies have had to postpone or cancel their events. Lead generation is essential for generating revenue. Hosting online events such as webinars, podcasts, live-streaming, guest posts, etc. can help you build a pipeline for new leads. Organizing virtual events can offer benefits such as; Increased attendees No need to travel or make expensive hotel bookings Multilingual options can allow for simultaneous translation or subtitles while overcoming the language barrier and opening the event for global audiences. The number of attendees is limitless in an online event Easier to collect feedback and make new connections Apart from the benefits mentioned above, virtual events have added advantages such as: The target audience is already there Easier to identify specific customer behaviors You can connect with a broader audience Minimized cost Shorten the sales cycle Easier to collect important information of the attendees Deliver what the audience wants to see or know Harness the power of data Leave it out in the open (let them follow you) Virtual events, if done right, can be the best way for lead generation. Utilizing Video Content 51% of marketing agencies worldwide affirmed that video content has the best Return on Investment (ROI). Video content enables people to learn faster from the tone, expression, body language, and other visual clues in the video, apart from the content itself. Video marketing can help draw the right set of the target audience, build trust and brand awareness, hold people's attention, and capture email addresses. Applying the following video marketing skills can help you use your skills to full potential for lead generation. Gate your video content Strategically insert your CTA Make use of video on landing pages Leverage video testimonial Make use of video case study Leverage your video across multiple social media platforms Other important things to consider are – Define Your Target Audience and Produce the Right Kind of Videos for Them Decide the Correct Length for your Video Create a Series of Live Videos Collecting and Using Your Data to Channelize Lead Generation Campaigns A well-planned and well-executed data-driven lead generation campaign should look like: Know your audience >> Plan & design your campaign >> Reach out to your target audience >> Fulfil their requirements >> Capture leads >> Qualify leads >> Nurture leads >> Follow-up >> Close Having a database with accurate and frequently updated info serves as the best source to identify qualified leads and potential customers. The idea is simple, suppose you can gather data on your ideal customer's characteristics and use analytics to generate insights to carve your buyer's persona. In that case, your database will be filled with leads who are genuinely interested in your organization's products and services. Final Thoughts Content marketing is the key to promote FinTech products on various digital platforms. Ensure that the content you publish is readable and well-researched without using much industry jargon. You must master the art of storytelling. It can address the three big stumbling blocks – credibility, trust, and education. Lastly, publish a lot. Ensure that your content is available in all forms and on all the relevant platforms to reach your target audience. Frequently Asked Questions What is content marketing, and how does it work for FinTech Market? Content marketing works by offering readers informative and useful material that provides valuable insights. When done well, it can help FinTech brands raise awareness, aid in consideration between solutions, drive engagement, and drive business growth. What is trending in the FinTech market? Artificial Intelligence (AI) and Machine Learning are the trending technologies behind the growth and development of the FinTech market. How to market a FinTech brand? 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When done well, it can help FinTech brands raise awareness, aid in consideration between solutions, drive engagement, and drive business growth." } },{ "@type": "Question", "name": "WHAT IS TRENDING IN THE FINTECH MARKET?", "acceptedAnswer": { "@type": "Answer", "text": "Artificial Intelligence (AI) and Machine Learning are the trending technologies behind the growth and development of the FinTech market." } },{ "@type": "Question", "name": "HOW TO MARKET A FINTECH BRAND?", "acceptedAnswer": { "@type": "Answer", "text": "Know your target audience & keyword Humanize your brand on social media Generate content for various campaigns Syndication of Content Email Marketing Create a FinTech forum Virtual Event - Webinars /podcasts / live-streaming / Guest Posts Utilizing video content Collecting and using your data to channelize lead generation campaigns" } }] }

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MicroVest Capital Management, LLC

MicroVest was created as a capital-mobilizing intermediary for microfinance institutions (MFIs). We are organized along commercial lines with a strong private sector board. Our objectives are: •to provide capital to microfinance institutions; •to help build capital markets for the micro-enterprise system; •to support self-sustaining financial institutions that serve the poor. MicroVest seeks partners to help make financial markets work for poor entrepreneurs of the world by linking capital markets and MFIs.

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