(15 June 2020 – United States) Corporates are allocating more of their business banking needs to well-established and well-known banks in response to COVID-19 related uncertainty citing it the shift as the best way to mitigate risks.
Bank of America serves as one key example with the bank recording 300,000 new investment accounts among SMEs and investors. As businesses actively take steps to allocate more business to incumbent bank majors, Fintechs will now need to use their niche specialities in financial services, low overheads and technology advantages, to regain their balance during turbulent times. Fintechs have long been key rivals for banks in the US, slowly chipping away market share from the biggest and best known banks as tracked closely in East & Partners US Business FX program.
“The pandemic has been a major milestone for FinTechs which will ultimately test the relevance and importance of FinTechs in today’s world” stated East & Partners Europe Market Analyst, Pierre Sokoya.