Cost of living crisis as a unique growth opportunity for B2C fintechs

The current cost of living crisis, bringing together headwinds faced by businesses and consumers alike, is truly the stuff economic nightmares are made of. With war-induced energy crises, market downturns, high inflation and soaring interest rates, and real-estate purchase and rental prices going through the roof, it is often difficult to see even a glimmer of hope - let alone a potential upside. 

Yet, there is an often-overlooked perspective on all of this mess that offers such glimmers of hope - particularly to B2C fintechs and the millennial and Gen Z consumers. The demographics most affected by the cost of living crisis are also the most technologically enabled. B2C fintechs who can implement new and innovative ways to help consumers weather the crisis can turn the economic nightmare into its polar opposite - the stuff entrepreneurial dreams are made of. 

Consumers are crying out for help - fintechs who can help them will help themselves succeed

The cost-of-living crisis is affecting all areas of consumers’ lives in a dramatic fashion. Its effects are global - and so is the opportunity for fintechs. 

A brief glimpse at a few statistics from around the globe is sufficient to paint the full picture: 

• In Canada, 35% of households found it difficult to meet their financial needs over the past year. The highest share was found in people aged 35 to 44 years old (46%), and those between 45 and 54 years old (41%). The cost of living crisis is so bad that 1 in 4 (26%) of households can’t handle an unexpected expense of $500. 
• According to Deloitte in the UK, around half of UK Gen Zs (48%) and millennials (54%) say they live pay-day to pay-day and worry that their monthly income will not be able to cover all their expenses. To make ends meet, 42% of Gen Zs and 39% of millennials have taken on a side hustle and value remote working because it helps them save money (26% of Gen Z and 38% of millennials).
• Over one third of consumers, and half of millennials across Europe are digging into their savings per McKinsey. Nearly nine out of ten shoppers in these generations say they have tried something new in the last three months. 

The picture these stats paint is very stark, indeed. Yet the insight from McKinsey - that 90% of consumers are trying something new in the last three months - truly means that consumers most open to technological innovation are also the most open to help. Innovative B2C fintechs and financial institutions alike should take heed. 

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B2C fintechs and financial institutions need a reliable partner to help reestablish trust with consumers

Financial provider relationships with consumers have always been based on trust. Trust is established and reconfirmed in times of crisis. Reliability of one’s solution is key to success in this area. This is where partnering with an experienced fintech development shop can make a difference between success and failure. 

While technology has developed at a whirlwind pace over the past few decades, the fundamental basis for any financial relationship is still trust. An innovative idea is therefore only a part of the equation. Execution in this day and age requires previous experience, knowledge of best practices, top-notch security and 99.9+% reliability. Both consumers and established financial players will look to leverage a solution they can trust.

To ensure this foundation of trust, B2C fintechs should partner with proven and established software development companies to build, test and implement their solution. At Vega IT, we have been working at the cutting edge of digital product development and helped many such organizations turn their vision into reality bringing innovative and bulletproof solutions to market.

If you are a B2C fintech with the right idea to help consumers in this time of need, organizations such as mine can help you make the difference between success and failure for all involved. Connections help people and organizations alike survive and eventually thrive in the time of crisis. Let’s connect and chat about how we can make a difference to the success of your idea!