Has COVID-19 made it impossible for start-ups to survive? Here’s how FinTech start-ups are facing this pandemic head-on
As COVID-19 continues to spread uncertainty among businesses and leads to an increase in the unemployment rate, companies are trying to find ways to recover from their losses. Even in this environment, FinTech companies are exploring innovative ways to expand their businesses. Not only have they kept their hiring processes in place but they have also managed to raise funds. According to a research by Crunchbase, financial technology companies have seen a rise from 10 percent to 16 percent of total venture funding from 2010 to 2016. Despite the COVID-19 situation, Visa has acquired two companies in this sector, Plaid and Very Good Security, since January this year.
Start-ups in this sector also saw a ray of hope when governments gave them the “Stamp of Approval” after the U.S. Small Business Administration’s Paycheck Protection Program was started.
Another research by HackerRank has shown that Financial Services companies have seen a spike in the number of interviews conducted since January as they continue to hire. As companies ease into the trend of remote working, they now have access to a larger talent pool.
While brick-and-mortar is out of the question, everyone is shifting towards technology now and companies like Robinhood, a stock brokerage firm, are spending a lot of money to improve their app’s infrastructure as transaction volumes increase. As traditional banking organizations face these times of uncertainty, FinTech start-ups are focusing on retaining their talent and coming up with innovative ways to survive the crisis.
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