When you’re in charge of a multinational company, you rapidly realize how essential fintech services are in today’s environment. Fintechs have a one-of-a-kind ability to increase financial inclusion, improve people’s daily lives, and promote economic growth. 
In recent years, the Fintech industry has grown at a rapid pace. However, the COVID-19 pandemic has wreaked havoc on it, as it does on most other industries.
Here are the positive and negative consequences it has had on the fintech sector.
The survivors’ momentum has been disrupted
In 2020, investor interest in fintech was at an all-time low. It’s a direct result of the COVID-19 pandemic, which has cast doubt on the industry’s long-term viability. More extended periods of uncertainty will reduce the number of fintech firms, giving momentum to those companies that can meet the obstacles.
The number of alternative lenders has shrunk
In the current situation, the flexible scoring technique to assessing underserved areas and the concentration on smaller loan amounts should provide a compelling argument for alternative lenders. However, the reality is somewhat different.
Small and large car insurance companies have seen a significant drop in income. Not only has this reduced consumption, but it has also increased defaults. As a result of weaker demand and more burdensome regulations, issuance has decreased, and, in some circumstances, corporations have been compelled to terminate operations.
Finance in the digital age has grown
The usage of remote services has increased due to quarantine restrictions, which include everything from online shopping to delivery, entertainment, streaming services, and mobile payments.
People accustomed to the benefits of the digital environment are likely to continue to do so in the post-COVID-19 time. Many counties have increased their contactless payment limitations. It has more than doubled in some circumstances.
Traditional car insurance companies aren’t just interested in fintech because of impending digitization. Since last year, car insurance companies’ financial performance has been declining.
Car insurance companies can overcome obstacles by changing their operational strategy and embracing digital transformation. It may also require these car insurance companies to give lower premiums, do less formal consumer assessments, and begin purchasing fintech startups. Surprisingly, fintech companies are very active in this area as they look for ways to improve performance.
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