Financial Services & Technology Adaption Post Covid-19


Covid-19 pandemic is possessing a major threat to human society. It disrupted everyday activities of human. Industries, Supply chains, businesses everything lost their track. Condition of Financial services is also not different. World economy is under a recession. Economy giants like US, Germany, Japan are struggling. Stock markets, Crude oil price everything crashed. This indicates that world is undergoing a change. Scenario post Covid-19 is becoming unpredictable. Financial institutions are undergoing a structural change. Here we are going to discuss about Post Covid-19 Financial services.

Credit defaults

Global economy is under a recession. Industries are struggling to survive. It will be very much difficult for the organizations to repay the loans. This is a serious issue to Central banks. Industries like Airlines, Real estate, Tourism, Automobiles are the worst hit. To regain their capacity, they need time and support from the governments and Central banks. It is estimated that defaults will be higher than during the 2008 global financial crisis.

Credit tightening

This is a panic situation. The situation is unpredictable. Consumption will be low and this will reduce the cash flows as well. There will be a lack of funds available in the credit market, which will make the condition of the borrowers worse. Lenders with limited funds may not be able to meet the requirements of Borrowers. Cost of borrowing may increase and will be unaffordable to businesses. Financial packages from Central Governments will be a good relief for Industries.

Low Interest rates

In order to support the local market, many Central banks have reduced the interest rates. This accelerates the business activities and reduce the tensions in the business world. Large economies like US, Japan and Germany reduced their interest rates to revive their economy. This procedure will initiate other countries to follow in the same way.

Lower cost structure

Financial institutions will try to cut their expenses and reduce their operational costs. They have to become more flexible to accept accidental changes happening in the society. Covid-19 pandemic is a lesson and these institutions must be aware to face new market threats. In the recent years, these institutions are going digital and saving money and time.


Digitalization will increase in the coming years. Wide adaption of AI and Blockchain technology can be seen in Financial world within 2 to 5 years. In the recent years itself, most of the famous banks in India and abroad introduced robotics and automation in their day-to-day operations. In the coming years, these organizations will undergo various changes to welcome AI. 5G connectivity, Blockchain technology and Automation will change the operational activities of financial institutions. Hybrid cloud platform will be used more and this will enable the organizations to manage their works in a consistent manner.


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