An Analysis Of Fintech Services For The Enhancement Of Financial Life Style In Post Covid -19 Era With Special Reference To Tiruvallur District

Abstract

Current Revolution on Information technology and Data science models have brought about an indispensable change in our conventional financial services. These technology enabled innovations in financial services that could result in new commercial models, user applications, progressions, or products with a related material effect on the provision of new Fintech services. It apprehensions a series of financial services (particularly online transactions, investments, credit, and insurance) for individuals and Fintech companies. Fintech appears to be closing gender gaps, but special attention would need to be paid to ensure that common people are not left behind during the COVID-19 crisis. Public noted here several barriers to digitalize financial inclusion such as access to resources (mobile phone, internet), ethnic or communal norms, and digital and financial literacy. Digital financial services are faster, more efficient, and typically cheaper than traditional financial services and, therefore, increasingly reaching lower and middle class income households and small and medium sized enterprises (SMEs). During the COVID-19 health crisis, digital financial services can and are enabling contactless and cashless transactions. Whenever digital financial inclusion is getting advancement, they are helping to facilitate in the efficient manner and quick deployment of government support measures, including to people and firms affected by this pandemic. This disaster is the first test of resilience of fintech companies, and the competitive landscape could change permanently during the recovery. The tightening of funding conditions and a sharp drop in transactions due to weak demand is already hitting fintech companies hard, especially the smaller ones and those with thinner buffers. Extensive consolidation in the fintech industry and retrenchment by smaller companies could lead to greater concentration in the sector and reduce financial access of small customers. Trends are likely to accelerate post-COVID as fintech companies and financial institutions seize new opportunities. Many of the daily wage workers, micro and small entrepreneurs may hardly be able to repay their loans, as their incomes have dropped. Also, collection of microfinance loans very often happens on a cash basis, at branches or at group meetings apart from clients’ incomes, the settlement process is also disturbed. In the meantime, it is critical that not all financing dries up. Assured sectors, think of food production and companies involved in health care, need to continue to operate and serve the people. This is only possible if selected sectors are being supported by governments as well as by the financial sector. During this crisis, level of services offered by financial institutions are much natural now and to be improved their quality of services in the future to get more benefits.