Videoconferencing applications such as Skype and Zoom or streaming services like Netflix obviously have seen their usage rise steeply in recent weeks. But the confinement of citizens to their apartments in many countries has also given a boost to fintech services in general.

The use of such applications has increased 72 percent within a week in Europe alone, according to Swiss-based consultancy Devere Group. While banks are due for some tougher times in the interest and wealth management businesses, and while insurers face huge demands for compensation from their clients, fintechs can look forward to a significant surge in demand.

Winners and Laggards

The question is whether this change of fortune will last. With the lockdown, the use of services provided by fintechs is becoming the norm, says Devere. With their success, these companies also assume a more substantial role in the industry: the Swiss Marketplace Lending Association (SMLA), the industry association of Swiss credit platforms, has offered to help the government provide loans to firms in need of emergency liquidity.

The coronacrisis has highlighted which areas in the Swiss financial market are laggards in terms of the financial revolution. The distribution of emergency loans for instance is conducted manually and traders also are still asked to go to their offices to guarantee a smooth settlement of transactions at a time when the huge volatility has boosted trading on the stock exchanges.