Even before the pandemic, many economies were struggling and were unable to reach their goals. Access to funding was already limited to fintech, and COVID 19 has placed further stress, pushing them towards an uncertain future. In addition, there are rate cuts that have changed the outlook of economies. But it’s not all gloom, as the global economy recovers; new opportunities with tremendous potential for growth will come to the fore.
COVID 19 Effect on Banks and Fintech Companies
Almost all companies, be it fintech, banks, or otherwise, have been impacted by the COVID 19 phenomenon. From supply chains to financial markets, there has been a disruption in operations due to the pandemic. Nevertheless, fintech companies are evolving and moving forward in their pursuit of digital transformation. But it’s not that easy, especially for small start-ups, as they are unable to get funding. Other companies, too, are struggling as investors seem to have high or sometimes unreasonable expectations in return for their investments. If the terms are accepted, companies risk losing huge amounts of money. Due to this, business models have to be rebuilt or relooked at.
How Fintechs Can Jump The Hurdle?
In my view, though the task of facing the post-covid challenges seems daunting, it can be overcome with some carefully carved tactics such as the ones suggested below:
Future opportunities for fintechs include serving those who are underbanked. They can also expect partnerships with banks and help develop new products and services. Operational challenges are bound to happen, those who tackle them in the right way are sure to see light at the end of the tunnel.