How Fintechs Might Fare in a Recession

There are growing signs that a recession could be coming sometime in the next couple of years; most fintech firms have not yet dealt with such an event and many wonder how these companies will fare when times are not good; newer fintechs will probably be the companies most in trouble, having scale and long term deals with banks will help to set up more established players; current valuations are one thing that worries Chris Sugden of Edison Partners, “The fintech market has been one shining example of a lot of enthusiasm and lots of money coming in. That’s why valuations worry me more than a recession.”; no one has a crystal ball but companies are going to be tested when the next recession comes and the better established they are the better they will probably fare. Source.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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