History has taught us that times of crisis drive demand for technological advancement. Those that leverage innovative technology, to tackle challenges and turn them into opportunities, are often the most successful in helping society to recover.

Earlier this year, when the novel coronavirus sparked a global pandemic, physical distancing was enforced around the world to limit the spread of infection. This led to a surge in remote working and a spike in unemployment, sparking technological innovation within a number of industries. In the financial services industry, digital banking trends were quickly affirmed.

In Europe, there was a 72% rise in the use of fintech apps in March alone, and in the United Kingdom, 6 million people downloaded digital banking apps for the first time between mid-March and mid-April.

Technological innovation in financial services is now giving SMEs a greater chance of surviving the coronavirus. Prior to the pandemic, private sector fintech lenders, like our business, Lidya, were already stepping in to bridge the SME credit gap in fast-growing economies. SMEs are the backbone of any economy, accounting for 80% of all jobs and playing a significant role alleviating poverty and generating wealth. But, according to the IFC, there is still a $4.5 trillion USD global funding gap for SMEs every year — and this figure was estimated before the pandemic took hold.

On top of that, SMEs have been some of the most financially affected businesses during the outbreak, particularly in fast-growing economies. Right now, SMEs — especially essential businesses, such as pharmaceuticals and supermarkets — need stability and the right financial support, to at least make sure that jobs are protected, and operations can keep going, in order to have any chance of scaling in the future.

Read more @The Next Web