Fintech: Your new way of banking after Covid-19
Fintech allows you to perform all kinds of operations wherever and whenever you want. Financial technology is a tool that has been changing the way we work with money. The Fintech market will pin its worth at approximately $ 305.7 billion by 2023 according to the Global Fintech Market (2018-2023). Due to social distancing, Fintech is considered a lifeline for the economy during Covid-19 and will most likely, drive economy recovery after the pandemic.
Small businesses do not have accountants. Fintech allows a business owner to understand their finances, helping them make good decisions about when and where to invest their money. Many Fintech solutions provide online software that manages invoices, payroll, expenses, and even cash flow forecasting.
Fintech helps the unbanked join the formal economy; it is not about managing existing resources but creating new ones that help growth. Financial applications are used to withdraw money paid for remote working. However, some authorities have blocked these applications. Payoneer for example, has been used as an alternative for freelancers and businesses. However, in April 2020, the website has been blocked in Lebanon based on the order of the Lebanese judiciary. In fact, the Fintech app can end the informal economy. Authorities cannot tax income they can’t see. Many Fintech services are not nationally recognized under government laws and regulations which means they would eventually operate outside conventional boundaries.
ZELF is a unique Fintech app that has been exclusively designed for ‘generation z’ with no application and no physical card. Users can transfer money to other ‘Zelfers’ or shop via a virtual MasterCard. ZELF is a messenger bank. After creating an account and clicking on the launch link, a new conversation with ZELF pops up and will be opened for money transfers and finances to be managed via WhatsApp, Facebook, Telegram of Viber. Users will get their own IBAN account number and virtual card, which they will be able to use for money transfer. According to the innovation website Sifted, ZELF have already signed 350,000 users to its waiting list in France and Spain since April 2020.
As quick and efficient as they are, Fintech platforms have to earn the trust of their users. That is why many are collaborating with other platforms claiming end-to-end encryption, despite the huge debate about this tool. Since most of these apps are introducing biometric data security, your biological credentials might also be at risk from hackers.