The social and economic disruption arising from Covid-19 has hit Germany’s small and medium-sized businesses (SMEs) hard, but it is also leading to changes in operations and strategy within financial institutions. Banks are increasing outsourcing, intensifying their digitalization efforts and expanding remote working. They are also reprioritizing their strategic goals.
Enter the fintechs – in Germany, a dynamic and growing sector comprising some 900 companies, which managed to raise EUR 1.3 billion in venture capital in 2019. “To achieve these top strategic goals, partnerships with external service providers or fintechs are essential, especially in this crisis,” says Tomas Rederer, head of PwC’s Financial Services Operations Consulting. He adds that Covid-19 has accelerated many banks’ existing plans to further optimize processes and strengthen business models.