Fintech In Crisis – And NOT Because Of Covid-19
(8 min read)
The fintech industry is in crisis, and on multiple fronts. Two had already become active before the Covid-19 scare: alternative lending and alternative currency. Now, the spectacular collapse of German payments firm Wirecard has opened up a third: alternative payments. Having gone from strength to strength since the global financial crisis of 2008-9, fintech currently faces major challenges – the greatest being the wall of regulations surrounding the financial industry generally. While in theory all financial firms face similar regulatory issues, established banks, especially SIFIs, have the advantage in three key areas. As long as this remains the case, fintech is likely to struggle to gain market share from here and might even lose it. Profitability will also remain elusive...
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