While many businesses are reporting a severe loss of sales, stock and cancellations, Fin-Tech companies aren’t just maintaining their business; they’re seeing a surge in demand. Around 20% of Fin-Techs are reporting this drastic increase. This surge is expected, in a way, as large antiquated companies are now finding it essential to digitise, and fast, in order to stay afloat. The vast majority of Fin-Techs being positively impacted specialise in AI, automation and digital ID services. With the increasing need for tighter infrastructure and better, more secure technology in businesses, it is more than likely that this demand will only continue to grow.
The majority of Fin-Tech businesses, around 87%, have raised equity finance. This means that they have cold hard cash in addition to being able to access expertise and investor networks. Businesses in the tech industry are also generally more likely to experience a low or positive impact. Due to their digital nature, they tend to be more flexible, innovative and have the capability for remote working. According to the report, “66% of Fin-Techs are currently at low risk – more than double the wider ecosystem average of 32% – while…20% are potentially positively affected”. Few jobs in the Fin-Tech sector are at risk; only 2% of jobs being immediately under threat in the critical and severe categories compared to 22% of jobs in the wider high-growth economy. Just 20% are moderately at risk and more than half (56%) are at low risk.
The recent COVID outbreak in the UK forced many businesses to realise the worth of digital solutions. COVID also meant that having digital channels for business operations was no longer a choice, it was a necessity. Therefore, for some business owners, COVID accelerated or forced them into a route they hadn’t considered before.
To see Beauhurst’s full report, click here.