The current pandemic has upended the financial services industry more in the last two months than fintech has in the last decade; fintechs and digital banks however are well suited to come out of the pandemic in great shape, so long as they can survive the shut down; signups at popular digital banks are down but that is not all that surprising, though there are outliers as Chime and Stash have shown in the U.S.; with social distancing and contactless payments consumers will be more attune to select a bank that meets their digital needs; customized offerings, low cost products and fee less banking will all be areas where digital banks can get a leg up on their incumbent competitors; digital banks do need to start looking towards the future and how they can build a sustainable business in order to take on traditional banks; with VC’s pulling back and customers hunkering down digital banks have to make their latest round last and provide over the top customer care to set themselves up for what could be a rapid expansion post pandemic. Forbes
