Fintech boom threatened by slowing economy

Fintech boom threatened by slowing economy

The rise in the use of fintech apps comes amid a general growth in the use of digital technology in a bid to adapt to life in lockdown.. The growth in online commerce has not only given a lifeline for some retailers but has redefined the spending behaviour for consumers.. With bank branches temporarily closed, customers have no choice but to resort to digital services, presenting an opportunity for banks and fintech companies to strengthen their relationship.. As per Finch Capital's Fintech: The Future Post CV-19 report, financial Institutions are turning to fintech companies rather than in-house solutions to accelerate their digital transformation.. As investors become more cautious, some early stage fintech companies may not be able to survive, as the pandemic could affect venture capital funding for new companies, as well as existing ones.. "We also expect a negative impact from the crisis in terms of onboarding new companies, it is challenging because a lot of them moved their attention to survival mode and they don't want to do anything else.".