Need-to-Know Changes within the Finance Industry in 2020 and 2021

Need-to-Know Changes within the Finance Industry in 2020 and 2021

  • October 15, 2020
  • Written by : REIL Capital

This year, 2020, has been full of surprises and unexpected impacts, especially within the finance industry. Due to this, many small business owners really hit hard during this pandemic. Including, everything from loss of employees from necessary layoffs, to increased debt.

COVID-19 has impacted more business owners than ever thought possible and has absolutely sparked many changes regarding small businesses.

According to an analysis by Indexable. Prior to the pandemic, the concept of banking was already under threat. Many companies are working to simplify and lower the barriers to entry for offering banking services to technology firms. Alike Shopify to make payments seamless, integrated, and quite frankly, invisible.

1. Things that got affected:

In terms of changes in the financial sector over the last year. Let’s take a brief look at how we have already been affected:

  • The pandemic crisis has accelerated the pace of digital transformation, with further expansion in e-commerce and increases in the pace of adoption of telemedicine, videoconferencing, online teaching, and fintech.
  • Public debt has skyrocketed, creating financial challenges around the world.
  • Now more than ever, we are learning the utter importance of working together on problems that affect us all. Together we are stronger.

Although it’s tough to make assumptions for the upcoming year with the ever-changing and unpredictable handling of the COVID-19 crisis. It’s not wrong for a business owner to be curious or hopeful in terms of what’s to come.

2. Predictions about 2021:

For those curious about the happenings ahead, here are a few predictions for 2021:

  • Low interest rates will be given for an extended period of time.
  • An increase of bad or poorly managed debt will be very present.
  • Premiums written may not return to pre-pandemic levels until 2023.
  • Stress-driven financial decisions will add to the challenge of managing business operations.
  • Financial service providers, both new and old, will have learned valuable lessons about what their customers want, their own business resilience, and how to compete in a digital-first (and potentially digital-only) market. Not only this, but lenders and financial advisors also have experience in guiding, financing, providing, and more to businesses; what was once a mystery is now a mapped-out action plan. Been there, done that.

After gaining the full picture of the impacts of COVID-19, current happenings in 2020, and future predictions for 2021. It’s easy to see that we will be in the building phase for at least the beginning of next year.

Businesses will now wonder how to build a strong foundation to take on big challenges like COVID-19 or another pandemic. They will want to help their customers or clients succeed. Businesses will rebuild to avoid failure, in the most planned and expert-advice-driven way.

After this, if you make sure you will finish out 2020 strong and will attack 2021 the right way? We encourage you to reach out, befriend your representative, and take on 2021 with us, as a team. Here at REIL, we have and keep your best interests that includes guiding you through tough times (and ytsears) like 2020, the year of COVID-19.

Leave a Reply