Fintech has "shown its value for those in need" during pandemic

Fintechs showed their worth for those in financial need during the pandemic, according to a professor who specialises in fintech at Oxford University.

Speaking on a panel at AltFi’s Festival of Finance, Pinar Ozcan, professor of entrepreneurship and innovation, Oxford University, also said the emergence of Amazon and other big corporates in financial services presents opportunities for fintechs.

Ozcan said the pandemic had had a “split effect” on fintechs.

On the one hand, she said many people had become “more conservative” with their finances, as they were worried about the financial impact of the pandemic, which had had a detrimental impact on the fintech industry.

On the other hand, fintechs had proved their worth for those in financial need, she said.

Ozcan said fintechs had provided services that were more straightforward, involved less wait time, and had better transparency than rival services from traditional financial services companies.

“Fintech has shown its value for those in need,” she said.

Ozcan also said the emergence of big institutions, like Google, Amazon and Oracle, into the financial services arena presented opportunist for fintechs.

Amazon, for example, has long been experimenting with financial initiatives, including partnering with major US banks that offer accounts in the online marketplace, as well as growing its existing financial offerings.

Google, meanwhile, offers checking accounts to consumers.

She added: “What this means is that there is actually quite a bit of opportunity for fintechs in being enablers or providing services that could be on-boarded, that can be bundled with what these large institutions can offer.”

Ozcan was speaking on a panel with Reginald de Wasseige, investor, Augmentum Fintech.