The word "unprecedented" has been used a lot in recent weeks by different authors when talking about the ongoing pandemic, and it is quite adequate. At least in the UK, we have not experienced any comparable national memory crises or events. We are in uncharted territory and, as a nation, we have to work together to flatten the infection curve and lessen the pressure on our NHS.
While the coming months appear to be a challenge for business owners, early indications suggest that the picture is slightly more optimistic for many fintech companies. For example, DeVere reported a 72% increase in usage, and surprisingly, the UK startup Glint App recorded a 718% increase in online gold purchases. Business is booming, and it seems that financial technology companies, far from being in trouble, may be one of the few types of businesses that emerge from the pandemic in a better position.
Given all of this, I would go so far as to say that it is the duty of financial technology companies to look at how we can better support other companies during the difficult months ahead. Business owners are understandably in trouble due to the economic downturn of the past few weeks. Freelancers in particular will need guidance and now is the time for fintech to step up. Here are a few ways fintechs could help:
Continue to use contractors
Times are definitely tough and the argument to cut costs would make sense under normal circumstances. However, if your bottom line is not in immediate jeopardy, why not continue to employ contractors who are already under your employment and ensure that important projects continue?
With millions of people at risk of falling through the government safety net and just under a million people who have applied for Universal Credit in the last two weeks of March, it could be saving them a lot of pain and stress, in addition to taking pressure off to overloaded benefits system.
Realize the benefits of remote work
Unless you have a hospital, supermarket, or other business that requires working in person, you should already have your team working remotely. Once the initial disruption has subsided, is there a silver lining to continuing the new normal? Arguably yes: meetings tend to be shorter and the overhead associated with keeping an building open will be lower or even non-existent.
Permission instead of letting go
The government has released a new aid package for companies to eliminate the need to let go of their staff. If your business has been reduced or stopped entirely due to the coronavirus, the government has provided you with a 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 the way VPN and Zoom. Don't assume that everyone is as aware as you are and are willing to share your knowledge with other companies that may be starting.
Consider paid vacations
If you're providing a subscription service to companies, contractors, or self-employed workers, consider whether you can offer struggling customers a break from payments for a few months. After all, if your client closes, they won't be able to pay you anyway, in which case no one wins.
Use your influence to effect change
If you have a successful business, you can be a powerful voice in helping others. Consider reaching out to your local MP to lobby on behalf of companies and freelancers, both in your area and beyond. You could also partner with other companies in your network and talk together. We need a better deal for those in danger of falling through the cracks because when it comes to a national emergency like the one we are currently experiencing, we really are all together.
Darren Fell is CEO and founder of Crunch