5 ways FinTech startups are adapting to the COVID-19 pandemic

We’re now living in a new macroeconomic narrative, one with major changes taking place nearly every day. To survive in such conditions, it’s necessary to be flexible. Unsurprisingly, FinTechs are already starting to adapt to the new realities. Here’s 5 important things FinTechs are doing to survive and come out with a brighter future:

  • Funding – funding for new projects is quickly drying up. Many FinTechs are postponing their search for funding or working closely with investor angels.
  • Online events – FinTech startups are usually reliant on events to form partnerships, seal deals and find funding. As the current situation does not allow for these events to occur in person, free virtual events are filling the void to help facilitate these connections.
  • Online financial service opportunities – there has been a 72% surge in FinTech app usage as consumers switch to digital payments and adapt mobile apps more readily. FinTechs poised to support consumers in these endeavors have a real advantage.
  • Risk-taking – some startups are walking the talk and launching new products. For example, Bux recently launched a new cryptocurrency platform with zero commission.
  • Community-focused initiatives – FinTech startups are supporting communities during these tough times by offering free advice, cancelling/waiving transaction fees, making donations to nonprofits and hospitals and launching never-before-seen consumer-centric products. This could be a new trend where the needs of the community become business priorities.