Every generation has a uniquely personal experience with economic crises. Several are embedded in the memories of Baby Boomers, whereas someone in Gen X needs fewer fingers to tally up the ones they’ve lived through.
On this generational spectrum, fintechs align with the youngest millennials or oldest members of Gen Z. The current economic situation is the first true test for these tech companies born as a result from a previous global crisis: the Great Recession.
They launched on a mission to question, reinvent, and challenge the status quo of asset management, commercial banking, investment banking, wealth management, trading, payments, and more. Central to their value proposition was the ability to use technology to substantially remove requirements for brick-and-mortar and face-to-face.
“Now, as the novel coronavirus presents the world with its biggest economic challenge in more than a decade, fintech is having a moment of truth,” wrote Jen Wieczner in a Fortune article this week.
We noted this article as a brief yet powerful explanation of the possibility for fintechs to become entrenched in the financial ecosystem. Some are stepping up to distribute money promised through government stimulus programs. Others have become the go-to app for homebound consumers to make financial transactions — some payment apps report their usage has doubled.
We agree with the Fortune article’s conclusion: “The time for fintech to deliver on those promises has arrived.”