Due to the coronavirus crisis, the fintech landscape has been impacted in terms of growth, profitability and competitive dynamics
According to the research conducted by VC Finch Capital, the coronavirus crisis impacts nearly every economic sector and business as well. Furthermore, despite the governments are committing trillion dollars support for enterprises and employees, the need for cash management is still significantly high.
The study says fintech firms will have to weather a crisis situation until the third quarter and then make it through a 12 to 18 month recovery period.
Although, those companies who will make it through the COVID-19’ economic fallout, will face a new digitalized form of running businesses, the report states.
VC Finch Capital also reveals that the digitalization in the life insurance and mortgage sectors along with SME lending platforms are expected to benefit the most. As to wealth management, crypto, and rent spheres, they are expected to face post-crisis struggles during the recovery.