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New technologies and the use of digital banking are key to reactivation, according to expert
Posted On 01 Mar 2021
2021 represents an opportunity to reactivate those businesses that were seriously affected by the economic crisis due to the covid-19 pandemic. Although in the final months of 2020 some sectors already perceived a slight recovery, improving business liquidity, in most cases it continues to be a challenge.
New technologies and the use of digital banking are key to reactivation, according to expert
This is explained by Miguel Ebenberger, General Manager of Banco ProCredit, who points out that, despite the fact that the pandemic continues, the outlook for the economic recovery for 2021 is encouraging.
“There are specific aspects that point towards a recovery: first, the entry of liquidity into the country – which began in the last quarter of 2020 and will continue this year – will allow the payment chain to be unblocked, benefiting businesses by freeing up resources that were kept frozen as accounts receivable ”, he maintains.
To this is added that companies have learned to operate in the current context and offer the added value of their products or services; Another aspect is the application of the vaccines developed against COVID-19, which will be an accelerating factor in the economic recovery, although its positive impact on the economy will probably only be noticed in the second half of the year, he points out.
It also shares some guidelines for businesses to improve their prospects for economic recovery, such as optimizing the financial structure. At this point, he indicates that the starting point towards an economic recovery is to put finances in order.
“Tasks such as reducing unnecessary expenses, improving production efficiency, opening up to new markets, reducing superfluous liabilities and, at the same time, ensuring access to the liquidity required for the recovery of the business, are fundamental”, he assures.
Another guideline is to verify the relevance of the products / services offered; On this aspect, he adds that consumers are still in the process of discovering their preferences in the new normal. One element, possibly temporary in nature, is a clear reduction in consumerism.
“Given the sudden and significant reduction in available resources, we have focused on acquiring essential goods to cover, mainly food and health needs”; however, he explains that it is foreseeable that, at the rate of recovery, a pre-pandemic behavior will resume in this regard.
A third point is to invest in new technologies, for him, there are technological solutions that can improve the added value of the business products / services in a tangible way for the client. Investing in them will allow, in the best of scenarios, to lower costs and be at the forefront of the market.
A fourth aspect is to prioritize the use of digital banking, since its use grants autonomy to companies and businesses, transparency and better control of the operations that are carried out on a day-to-day basis, it also allows optimizing the time in the execution of operations , as it provides comfort and accessibility without time restrictions.
The formalization of the business is another aspect that he mentions, it is the process of incorporation into the formal economy; that is, to the registration and granting of licenses by the authorities, access to social security for the owner and his collaborators, and compliance with the current legal system regarding taxes and labor legislation.
Finally, he suggests investing in staff training, explains that sometimes investing in staff training is relegated to the background, especially when it comes to a relatively small business, or when working with tight budgets.
However, he adds, being the fundamental human team for the start-up and success of any project, it is very important that a percentage of its resources be allocated to train it on topics that are relevant to the business line. (I)
