Too Long; Didn't Read
Banks and Fintechs face very different challenges as they navigate the COVID-19 crisis. Banks are already facing challenges: demanding customer expectations, new competitive dynamics, created by low interest rates and lower barriers to entry for BigTech and F.tech startups. Banks operate on the edge of profitability, relying on private capital, with services that limit add-on services (major ones related to travel and FX) Fundraising is likely to be extremely challenging during and after the crisis. Both banks are feeling the pain from new operational requirements with no clear end in sight. Banks have the experience to withstanding a crisis. Finttechs have the ability to make fast changes that level their position.