It seems like the economy never had a chance to take a break. From the COVID-19 pandemic to the ongoing Russian-Ukraine war, the economy saw a sluggish growth in 2022 at 3.2% from the 6% in 2021 and is only predicted to fall further this year.
While the global economy is not at imminent risk of sliding into recession, growth will still be slow at an average pace of 1.7% in 2023, down from the previously expected 3% mid last year. The main contributing factor to this is due to the unexpected rapid and synchronous global monetary policy tightening, according to the World Bank.
When economic growth is slow, business revenue will also tend to take a hit, which will lead to businesses cutting back on spending to match the slower revenue growth. In these times, the adjustments and adaptation they commit to may allow their company to thrive if an actual recession unfolds.
So how can businesses navigate through these trying times?
Embrace Digital Transformation
Businesses would once again, need to adapt using new-age technologies. One such technology is the use of Web3 blockchain-based payments. Blockchain technology enables transparent and trackable payments which are noted to reduce cross-border settlement time significantly. A November 2021 report from Juniper Research also suggested that use of blockchain could reduce cross-border settlement costs by over $10 billion a year by 2030.
Focus on Client Experience
Providing a great customer experience is key to building customer loyalty and staying competitive. Businesses should aim to deliver a seamless, personalized experience across all touchpoints, including their website, social media, and customer service channels. Incorporating new technologies will allow end-users to enjoy cheaper rates with simpler processes, making your business more preferable.
Secured Data Sharing
The new age of technologies also allows for a more secure data sharing space. With end-to-end encryption and an immutable cryptographic signature, another benefit to incorporating blockchain technology is a cheaper and more secure way to store data.
By remaining agile and adaptable, and making use of up-and-coming trends and technologies, that’s when businesses will thrive, even in the threat of a slower economic growth or recession. It is thus, no surprise that blockchain technology is predicted to revolutionize the traditional finance landscape, according to PriceWaterhouseCoopers.
The idea of incorporating something new within your business may seem daunting, but that’s what we’re here for. At Finext Eastern Bank, we help you revolutionize your finances and remove the current limitations of traditional banking by taking advantage of 24/7 lightning-speed transactions at a lower cost, with the use of asset-backed stablecoins (USDT and USDC). We focus on how to integrate blockchain technology with your business so you have more time to grow your business globally without the hassle.
Contact us today to see how we can help: [email protected]