COVID-19: Retail Banking vs. Digital private Lending
At a macro level, the financial industry has been significantly impacted by COVID-19. There is an increased expectation for banks to play a societal role amidst this pandemic, despite facing their own challenges. In some respects, private lending companies with a digital focus might be better positioned to face this crisis.
Depending on the roles large banks will play in helping clients and consumers manage through the pandemic, there are multiple scenarios possible regarding credit risk scoring and consumer tendencies. At the moment, however, fintech firms through their innovation and digital characteristics might be better positioned to survive and even grow despite the disruptions caused by COVID-19.
Sources: Eurostat - EU-SILC Survey, Deloitte - Retail Banking in the age of Covid-19.