The global coronavirus pandemic has far-reaching implications for every aspect of the economy, and fintech is already feeling some of the consequences of the escalating crisis.
From canceled events to shrinking opportunities for fundraising, we’re talking through some of the biggest challenges this crisis will present to the industry. We’re also highlighting the areas of opportunity unique to fintech as the situation continues to evolve.
Fintech, like every industry, is facing major challenges due to the coronavirus outbreak. Below are some of the issues we anticipate the sector will experience in the coming weeks and months.
Conferences and events postponed – Events across every single sector have either been postponed or delayed indefinitely as part of an effort to slow the spread of the virus. Postponed events mark missed opportunities for fintechs to develop relationships and focus on new business.
Venture capital funding may be impacted – The markets are incredibly volatile right now and in the months to come fintechs may face challenges fundraising as investors retreat to more cautious positions. However, as digital solutions become more of a focus on the other side of this crisis, fintechs that can weather leaner fundraising rounds in the near and medium-term may see investment bounce back strongly once the worst of the pandemic is behind us.
Consumers may be less willing to invest savings – Fintechs with a focus on consumer investments may be impacted by consumer wariness about investing during such a volatile moment. Even those investors lucky enough to be relatively insulated from the economic fallout may choose to put their money in safer options for the time being.
Payments may be down – Fintechs that handle payments may see a drop in activity from consumers feeling the squeeze of an economy in freefall.
