The covid-19 crisis has negatively impacted a large number of businesses globally. Fintechs are no exception.
In fact, according to reports, a large number of Fintechs are either slowly shutting down, or they are totally out of business. Why? One of the leading reasons is the Covid-19 global pandemic. Because of it, fintech funding is now becoming a scarcity. Elsewhere in some parts of Europe, new laws and regulations are now in place to allow borrowers to postpone their repayments. These circumstances, have highly contributed to exposing a large number of fintechs to existential threats. Some notable fintechs have been severely impacted, to an extent of filing bankruptcy due to the negative effects of the coronavirus pandemic. (Read more here about German Fintech Monedo)
McKinsey published an article on how the dynamics of fintechs are changing, opportunites and how struggling fintechs can overcome the covid-19 related challenges. (Read it here)
Elsewhere, certain fintechs are promoting desperate measures to deal with borrowers who’re late on loan re-payment- They’re social-shaming them. Read more about the lending app which publicly shames you when you’re late on loan payment.