In the future, 5 or 10 years from now, we will see an evolution in business and a paradigm shift occurring all due to the global COVID-19 pandemic. Many of us have been advocating that the business world has been operating ineffectively, but not until now has everyone been able to see it and experience it first hand. There are many examples where the chain is broken.
American Stimulus Checks (Banking)
Before the first round of stimulus checks issued to the American people, the US President told everyone that their checks would be deposited within 48 hours. However, a few hours later, the IRS issued a contradictory news release that only about 50% of Americans would receive the aid within 48 hours. For the rest of the population, without direct deposit set up, the process would take months and lacked the potential for setting up direct deposit only. Plus, since the pandemic began to close businesses and eliminate jobs, there has been no additional aid to the American people besides a smaller sum approved by Congress in December.
Opening Commercial Business Accounts (Banking)
Anyone with a business account has experienced the process of setting up a commercial bank account. Applicants need to bring their books, ID, etc., and set up an appointment with the bank to open a business account. The banker collects all the information and begins the onboarding process. However, this process is often variable and inefficient depending on the financial institution.
Broker-dealers in the alternative investment sector, such as those who work with investors for private companies, are accustomed to meeting investors face-to-face to bring them opportunities and perform regulatory compliance. This often makes it more than just a service—it is a personal relationship built between investors and their broker-dealers. However, with face-to-face appointments becoming a way of the past in favor of virtual meetings, the process needs to be improved to support this fundamental change.
Post COVID-19 RESET
The last time we had a reset of any significant magnitude in business was at 11:59 PM on 31 December 1999. For those who remember the 12 months before this date and time, everyone knew that the future was going to be different, and we saw the next phase of the computer and software introduction to business.
Despite this, since 11:59 PM on 31 December 1999, all we have seen is more development but no “reset” and small uptake to really make a difference. These businesses on which we rely for our financial services have been noticing the signs that change is coming. Most of them would say, nothing to worry about because my business is very personal with my clients. Some have attributed that the only way you can offer a personal touch to your business is by not adopting technology to operate your business efficiently.
For those who understand and are already seeing this as an opportunity to lead the business world, this “RESET” will create new leaders in many areas as we move to end-to-end processes that have no broken links in these areas:
- Banks that will be fully online, including onboarding customers and transacting. No more PDF’s but fully integrated with your corporate activities
- End-to-End integrated with companies
- The personal touch extended to all clients to pursue opportunities and able to invest by simply updating their profile and from the comfort of their home, office, vacation.
- End-to-End integrated with investors, compliance, companies, banking
- Managing all corporate records for C-level onward to be connected to their shareholders, access to capital, banking, insurance, and M&A, regardless of the size of a company
- End-to-End integration with Broker-dealers, Banking, Secondary Market, and all stakeholders (management, board directors, shareholders, investors, legal, auditors)
We rely on them (Banking, Broker-Dealers) to transact to keep our businesses operational. If they are no longer changing the way a service is delivered or integrated or a company or stakeholders are onboarded, companies will pivot to make rapid, fundamental changes to keep their business operational.
There will be holdouts as we saw on 31 December 1999. In the end, they will be the ones complaining that it was Covid-19 that destroyed their businesses, but in reality, their businesses were adversely affected by not pivoting when all indicators pointed to the need for change.
We are seeing clear indicators already that we must pivot our way of doing business. Companies are raising capital online from registered funding portals or via their website, and the data is showing strong growth in online investing. This is one clear sign that those who have pivoted are getting rewarded versus those waiting and hoping for the good old days to come back.
11:59 PM 31 December 2020