COVID19 Impact: The Business Model Reengineering of Fintechs
The ongoing Covid-19 virus pandemic followed by the countrywide lockdown has pushed most businesses to a grinding halt. Startups are no less impacted. While most of the sectors like logistics, delivery apps, edutech and consumer goods have either largely remain untouched or are thriving, most others need to prepare well to deal with the long-term economic impact coronavirus will leave on their businesses.
A lot of startups are eyeing for the new opportunities in this crisis and many are reengineering their business models or are collaborating with other businesses to help the latter cater to the current demand. Financial technology (fintech) start-ups are leaving no stone unturned to come up with new business initiatives and products to cope with the impact of the Covid-19 pandemic.
If the industry experts are to be believed, the Covid-19 pandemic could fast-forward the fintech sector. “Certain behavioural patterns are going to be accelerated because of Covid-19. Cross-selling relevant products, such as insurance, is one of the big opportunities for fintech start-ups. These opportunities were always in the plans, but have been fast-tracked because of the given situation,” said Sanjay Swamy, managing partner, Prime Venture Partners.
Walmart-owned digital payments company PhonePe had also launched Corona Care, a coronavirus hospitalization insurance policy, in partnership with Bajaj Allianz General Insurance. Priced at Rs 156, the plan comes with a cover of Rs 50,000 for a person aged under 55 years and is applicable at any hospital offering Covid-19 treatment. It also covers 30 days of expenses related to pre-hospitalization costs and post-care medical treatment. Digital payments and financial services platform Paytm have rolled out a Covid-19 insurance policy in collaboration with Reliance General Insurance with a cover ranging from Rs 25,000 to Rs 2 lakh. “With our Covid-19 Benefit Insurance Policy, we aim to provide simple health insurance coverage that will take care of most expenses that a Covid-19 patient might have to incur. The policy can be purchased on the Paytm app, and is generated online within a few minutes from the safe confines of one’s home,” said Amit Nayyar, president, Paytm.
COVID-19 is pushing tech companies to rapidly operate in new ways, and systems resilience is being tested as never before. As businesses juggle a range of new systems priorities and challenges― business continuity risks, sudden changes in volume, real-time decision-making, workforce productivity, security risks―leaders must act quickly to address immediate systems resilience issues and lay a foundation for the future.