Novae: 2021 Was the Year of Disruption

The COVID pandemic disrupted all of our lives, forcing us to find new ways to work, play and shop. Digitally mature companies proved up to the challenge, says Sergio Arana, founder and CEO of Novae, meeting consumer demand with innovations that helped them survive — and thrive — amid the turmoil. Read his thoughts in the PYMNTS eBook, “In a Word: 50 Thought Leaders Sum Up 2021.”

Over the past 24 months, we have seen major disruption, as all industries have had to adapt to the new normal of a digital-first world. The pandemic has rapidly accelerated the diffusion of innovation and pushed new technologies to the forefront. We are now accustomed to Zoom meetings and working remotely, and have adopted new software and workflow solutions to adjust. When we sit back and reflect over the last period, we realize that regardless of the industry, companies that were digitally ready pre-pandemic were able to more efficiently compete and thrive — from retail, eCommerce and logistics to banking and payments.

It has been the perfect storm of consumer digital readiness meeting technological innovation. Consumers of all ages are experimenting with new technologies and platforms — it is not necessarily limited to the younger generations of millennials or Gen Z. The result has been an explosion of the usage of eCommerce, contactless payments, cash apps and digital wallets across the world. What may have taken years to become mainstream is now the norm.

We have seen that investors are eager to participate in these trends through big bets on disruptive technologies. The infusion of capital has led to explosive innovation — especially in FinTech — with the development of new features, trends and business lines, along with record-breaking startup valuations. Right now, there are no boundaries to the creation of new businesses that provide the best user experience and satisfy consumer needs. Incumbents are being tested, and must either rapidly transform themselves or partner with growing FinTech companies in order to thrive in the increasingly digital-first ecosystem. It is clear that the future is fast — and the future is digital. 

I question whether we would be seeing this magnitude of innovation at any other point in time. Some technologies and/or trends have been around for a while, but it has not been until this moment that the market has been ready to take adoption to the next level. For example, cryptocurrency values have soared as their use cases have grown, and the ability to trade and transact has become easier. BNPL, or installment payments, have long been present in international markets, but have only recently become prevalent in more mature markets like the U.S. and Europe as merchants leverage it as a way to boost sales while satisfying customer needs. 

Across the board, consumers now have more options than ever before. What differentiates one product from another is not necessarily only robust features or services, but also a strong user experience and the ability to connect with the consumer in a meaningful way that provides value. With this, we have seen more companies place an emphasis on loyalty through rewards programs that give the customer the power and flexibility to spend the way they want. We anticipate further disruption in this space to encompass some of the aforementioned trends like crypto and installment payments. 

Ultimately, the consumer is in the driver’s seat — disruption will continue to be driven by their demands and market participants’ ability to meet them.