Fintech experiences pandemic boost

Despite the dreaded virus (1), fintech has enjoyed an optimistic amount of interest, with several companies successfully completing rounds of fundraising (2). Digital banks (3), financial service firms (4) and trading platforms (5) may thank the lockdowns for reinforcing the attraction of online “distance” banking and investment. Digital finance is expanding further into Asia (6), albeit with some bumps (7) and bruises (8) along the way. Requests for loan restructuring have been on the rise (9) due to the pandemic, leaving some confusion by P2P lenders as to how to proceed (10). The government has stepped in to develop policies (11) in hopes of minimising the impact of COVID-19.

Digital finance has also seen some global standardisation (12), and a creation of “fairness metrics” (13) for credit risk scoring, both aimed at ensuring seamless delivery on its ever-growing popularity. Fintech has been lending a hand with governments’ financial distribution programs (14), going as far as picking up the slack when the government process was too slow (15). Despite some skepticism (16), digital finance continues to expand internationally (17), changing the landscape of future banking — or put as a compelling visual: it is “rewiring the financial world’s nervous system” (18).

References

1. Airwallex gets $250m raise away despite COVID-19 crunch

2. Indonesia's P2P lender Modalku raises $40m in Series C round

3. Peter Thiel-backed digital bank N26 raises another $100 million, bracing for coronavirus uncertainty

4. Oriente raises $50m Series B round led by Henderson Land's Peter Lee

5. Fintech startup Robinhood raises fresh funds at $8.3 billion valuation

6. Daniel Sandmeier: «Asia is Next Logical Step»

7. Fintech firm Oriente lays off 20% of workforce since Q4 2019

8. Indian fintechs face big test as economy feels the heat

9. Requests for loan restructuring on the rise as COVID-19 hits P2P borrowers

10. Global P2P platform Mintos suspends Indonesia’s Akulaku over late payments

11. Following Loan Restructuring Initiative, Akulaku: Digitial Finance Business will be OK amid pandemic

12. OpenLegacy Joins the Banking Industry Architecture Network to Help Create Global Banking Standards

13. MAS to create 'fairness metrics' for AI, analytics adoption in financial services

14. Fintech Firms Intuit and PayPal Approved by SBA to Distribute Funds

15. Slow Hong Kong Handouts Prompts Fintech Firm to Offer Them First

16. Ripple Responds to Research Showing Vast Majority of XRP Transactions Are Empty | The Daily Hodl

17. SoFi goes international with acquisition of Hong Kong-based investment app 8 Securities

18. The financial world’s nervous system is being rewired