Fintechs Lose Financial Footing, Tipping Scales In Favor Of Incumbents, For Now
The competitive threat fintechs pose to incumbent financial institutions has diminished in many regions over the past year. As capital has become more selective in the current rising interest rate, slower-growth environment, many fintechs, lacking the more stable funding of established institutions, have scaled back operations, especially those taking a ‘build now, profit later’ approach. Among these are challenger banks N26 and Monzo, which exited the US market. Other unprofitable fintechs, such as buy now pay later (BNPL) company Affirm, have laid off staff, and a few have closed altogether....