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.
