Digital Banks, Payments Startups Face First Major Test in Virus
- Many fintech companies experience market slump for first time
- Holding on to customers a problem as depositors seek safety
This article is for subscribers only.
Fintech startups looking to upend how Americans do their banking are facing their first major test as interest rates fall and fearful consumers seek safety at traditional banks.
Square Inc. and Stripe Inc., mobile payments companies founded after the 2008 financial crisis, and digital banks including Chime Inc. and MoneyLion have never experienced a major market slump. The new industry, in other words, has yet to prove its business models can withstand a crisis.