Khurram Shroff, Chairman of IBC Group, explains what he has learned after a year of a global pandemic.
If history is any indication, every pandemic has left valuable lessons in its wake. But in the distant future, the COVID-19 pandemic will be looked back at as an inflection point in the trajectory of digitisation – a point where we really took the plunge. As a Blockchain enthusiast, I have been witnessing this effect unfold with interest. For example, the economic downturn drove many old-school businesspersons into new waters. Investors, who restricted themselves to hedging in bullion, are now HODLing Bitcoin! And in doing so, they are becoming much richer than they otherwise would be by buying gold, and they didn’t even have to step outside their homes – all thanks to Blockchain technology. Such institutional interest could only be born out of necessity, and the pandemic created it. Going forward, it is safe to say that innovative technologies like Blockchain will be met with less resistance, by both old-schoolers and trendsetters alike.
Another structural shift in the business ecosystem is the increasing departure from profit-driven strategies to purpose-driven models. The pandemic brought a sea change in consumer behaviour, necessitating that businesses adapt and align their products and services closely with customers’ pain points, rather than just ‘selling’. Businesses are now becoming more transparent and accountable, with customers getting increasingly wary of products and services that are profiteering from the pandemic. This is a lesson that businesses had to learn the hard way, but the result bodes well for the future.
Many businesses are increasingly more involved in causes that make a visible difference to people’s lives and the environment. I read uplifting stories of individuals and companies raising massive capital through socially conscious and climate-positive digital art/NFTs for humanitarian causes. Going forward, such CSR activities will be increasingly viewed through the lens of non-discretionary spending.
The pandemic exposed people to new possibilities that they were reluctant to explore before. Digital payment registrations shot up in every nook and corner of the world. The FinTech space is rife with dynamism, which is leading to better transactional efficiency, increased financial inclusion and user-friendly interfaces. During a time when jobs and livelihoods were hanging in the balance, people stranded in foreign countries could receive money virtually, using decentralised cryptocurrencies. Meteoric rise in crypto activity in Africa is largely owed to migrant workers sending money and supporting families back home. This development is now encouraging governing bodies to facilitate a legislative framework and promote crypto exchanges. This could, in turn, lead to many positive business outcomes. So, as a business leader, the lesson I took away from this is that every crisis creates opportunities. And the COVID-19 pandemic is no different.