Socio-economic fault-lines Uncovered Through COVID-19

How Will Tech Startups Help?

One thing is for sure, once we are through to the other side of this Global Pandemic, there is going to be one hell of a party!

But after the dust will settle, a period of reflection will follow and there will be a lot of questions from people from all sections of global communities.

What is clear by now to most of us is that we were not ready.

There were warnings aplenty, just like back when the Financial Crisis was about to hit in 2008. People spoke out, warned us about what will happen and that a blasé approach was not wise. These people were trustworthy and familiar, they told us that it was time to take action, that the entire situation was a big, big deal — yet we were still not prepared.

Just about everyone is or will be affected in different ways by this strange and ever-lengthening period of uncertainty. More and more parts of our lives are being affected. As the impact grows, so does time for reflection.

Governments are dealing with the changing landscape on the fly, and in most countries, the enterprises that make up the infrastructures we rely on are in full ‘support mode’ sending messages of positivity and collaboration, such as ‘we are here for you’ and ‘your service will not be restricted’. This is good — but it will cause repercussions.

Fault-lines are appearing everywhere.

In property, for instance, how long do private landlords give or receive state or insured support and offer furlough periods? How long are mortgage breaks, does everyone offer these and to what limit? In Finance and Banking, the acceptance rate for credit has tightened to 75% less than where they were pre-COVID. Insurance policies, rental agreements, financing on vehicles, savings rates, and of course, crucial employment laws are all under scrutiny for not being able to cope or align with a scaling global event such as the one we’re living through now.

Can this be avoided? Just how long can you homeschool your GCSE aged kids before everyone goes slightly bonkers?

Regardless of when the current crisis subsides — which it will, the world will be a different place, mindsets will change and business and social sectors will alter.

A colleague of mine maintains that people will slowly ‘revert to norm’ and the criticality and experience we have now will subside, to which I agree. However there will be residue, and people will be looking for solutions, for answers and to the future.

There will be more of a ‘savings and insurance’ mentality — a security element that will be sought-after, heightened, and will subsequently throw open a plethora of opportunities for those presenting new solutions. Those businesses offering a new perspective and understanding, one that sends the message that ‘business as usual’ is not the thing to focus on in fact the polar opposite.

Digitalization

There are platforms, apps, systems and learning software that will be prominent. Individual UX and tailored services with user requirements put first will become the norm. Exponential technology is going to offer solutions to many of the problems that we are experiencing right now. The early-stage teams and products that realise this or capitalise on it, will experience a growth curve after COVID that resembles a ski jump.

EdTech, MedTech, PropTech, FamilyTech, BioTech, they will all be catapulted forward.

The ability to work and conduct services remotely will have a huge impact and technology such as VR, AR, Blockchain, and AI will be able to put solutions in place for when we experience an event such as this one again (which for many of us reading this today is a sad reality), all areas of our life will be ready and if we want to, we’ll be able to carry on regardless. Some of the behaviour underpinned by technology we are now adopting will carry through to apost COVID era.

Governments and big corporations will rely on this too — these won’t just be consumer choices. And don’t forget that the budget Governments are attributing right now for support will have to be paid back, there is no such thing as a free lunch! Look where super high borrowing and risk-based credit got us! Subprime CDO sandwich anyone?!

Think of it like this. From when you get up and Alexa plays your Sunny Day playlist, to how the fridge is filled with the products that enable you and your family to exist healthily, to the way your kids get to school (think driverless Uber with tracking, or remote-controlled Teslas).

Think of the possible solutions for daily tasks, from the format that allows you to exercise virtually alongside friends (Peleton vs. Joe wicks vs. home training robots) to the way you order your coffee and check your bank balance and portfolio, to the way you work from home or in remote locations, to how lunch is delivered or made…. right through to how you and your kids experience extended learning or immersive relaxing routines in the evenings (think super creative VR and engaged e-learning platforms).

Literally nearly every single element can have a framework and be underpinned with exponential technology.

You will be able to switch insurance policies on and off, your rental providers will be much more intelligent and agile, your work contract will have new clauses as will your health insurance — there will be a lot to think about!

Go out on a limb

This is our message to Founders or early-stage teams, investors, and entrepreneur mindsets overall:

Don’t sit still. Push your product forward.

Go more digital. Go more tech-enabled. Do more user research and testing and engage with anyone who thinks the same way that we do. Out of this dark period will come something amazing to change things for good. We have the thinking and tech to be able to underpin it right now and adoption levels care to go only up!

I recently spoke to a guy I know that had a very large PropTech proposition we were going to design and build together — of course, COVID stopped it in its tracks given it was a very large and complex investment proposition. He called me and said ‘I’m applying for government grants and I’m going to develop a user based commerce platform that helps now but has legs for the future’ — Yes!

This is what we need, and acceptance that now is a time to get going and build sustainable products and if that means change… then change!

These are not normal times, so stop doing ‘the normal’!

All of that being said, most of all it will be super nice to meet friends for a pint and a nice meal after this entire situation is over. We’ll get back out there soon, even if we are 2 meters apart!

Takeaways:

• Just about everyone is or will be affected in different ways by this uncertain and perpetually-changing period;
• When the current crisis passes, mindsets will change and businesses and the social sectors will change shape;
• People will slowly ‘revert to the norm’ but there will be residue, people will be looking for solutions, for answers, and to the future;
• Exponential technology is going to offer solutions to many of the problems that we are experiencing right now;
• Now is a time to build sustainable products, even (or more so) if it means change.

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