Fintech startups were hot news before the COVID-19 era, but the pandemic hasn’t bumped the sector out of the headlines.
Companies that were pitching optimistic news a few weeks ago are now cutting staff. Others are facing a surge of users trying to find their financial footing in the face of uncertainty. Some fintech shops are sharing data by the heap, while others refuse to disburse even a morsel.
And what about all those credit card startups?
As a startup category, fintech is in a complex spot as the global markets shed value. Small businesses hampered by shelter-in-place orders are scrambling for alternate capital sources and individuals are eager to secure their financial health.
It’s a time of utmost use — or uselessness — for fintech solutions.
To make sense of all the changes, we dug our teeth into several news stories. We also collected and peppered in fresh data from a host of startups in the space and mixed in commentary from investor Kyle Lui of DCM, a venture firm that invested in the recent (and successful) fintech IPO of Bill.com.
So here’s a brief, contentedly complete look at the world of fintech. We’ll start with who we know is struggling, move on to companies that are either quiet or unclear in their recent performance and we’ll close with some companies that are performing well in the odd world we find ourselves in.
Who is struggling?
The snap from rapid growth and layoffs was rapid for many players in the space. A number of firms that we’ve covered recently have rapidly seen their fortunes change.