The ongoing pandemic has had an unprecedented impact on almost every nation in the world and has adversely affected almost every industry sector. According to the UN’s trade and development agency, the slowdown in the global economy caused by the pandemic is likely to cost at least $1 trillion. But how will it impact the fintech sector specifically? 

While relatively young, the fintech industry covers a wide range of products across both consumer and business markets. The impact of the virus on a fintech business will, therefore, depend very much on what type of service they offer and their operational model. With the global population confined to their homes, online spending down due to widespread furloughing and fears of an economic downturn, fintechs whose business models depend on consumer spending are likely to be among the hardest hit. The same can be said of fintechs operating solely in currency exchange or travel-related spending.

Survival of the fittest

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