Two unlikely catalysts may be coming together in an effort to automate finance. On one side, there is the COVID-19 pandemic, disrupting everything in its path. On the other, there’s DeFi, virtually autonomous decentralized finance with tremendous potential.
COVID-19 is Forcing the Change
Automating finance has always been a double-edged blade. While it certainly has its merits, one has to wonder if it can meet expectations. According to a CEOWorld, nearly 50% of executives are still on the fence about investing in automation. At the same time, these companies risk being held back and getting behind the curve.
Technological innovation is paramount in any industry. With so many issues on the workfloor due to COVID-19, automated solutions can make a difference. While many firms still need to push through the digital transformation stage, significant progress is made globally.
Technology-driven solutions can make a core difference. Not only from the viewpoint of the company, but also the employees. Many benefits are waiting to be unlocked. Every recession triggers more automation, and the financial stress caused by COVID-19 will not be an exception.
Automating payments – or cancellations – has proven to be beneficial to many firms already. If there is an increase in “cases”, the technology stack can handle everything. Reducing the overall financial workload will be appreciated by employees too. There is enough work to be done, and the vast majority of financial activities can be automated with ease.
That being said, there is still a growing demand for specific services and products. Only so much can be automated in finance today. Thanks to innovative concepts- such as DeFi -there will be far more viable use cases in the near future. The time to be innovative is now.
What can DeFi Change?
That will be the question to answer in the coming years. As everyone has seen, it can affect lending, borrowing, interest yields, and a lot more. Doing so on a large scale has not been tried before, though. Finding use cases for the enterprise sector may pose challenges, but it remains an option to look into as a developer. In these times of COVID-19, no opportunity should go to waste.
It is evident that automation and decentralized finance can unlock ample use cases. Whether they will cater to the masses, is a different matter. It will require a different approach that may not involve cryptocurrencies directly. The future looks very bright and interesting, as the building blocks to develop modern and automated financial tools are there for the taking.