New innovations and lending products from fintechs/ banks: • Traditional risk strategies are not always effective for shifts during economic uncertainty and recession. Banks are likely to continue taking a more conservative approach, will tighten lending initially and loosen up as market indicators become more favorable. • Fintechs will continue to lead the way with innovation, but more as a matter of necessity. Fintechs are likely to find new ways to evaluate risk and unlock new, untapped lending segments to drive their growth. What’s interesting is how fintechs in the region are continuing to service and penetrate the short-term, nano-loan segment. Fintechs are providing a critical bridge for the gap that the recession creates for some borrowers. Predictions: • Unless the instability in Eastern Europe comes to a swift end and we start seeing signs of a recovery from the recession, we will continue to see an economic slowdown, including in fintech investments. Those that remain and survive will be the ones that are able to innovate and address the gaps created by the slowdown from mainstream lending.
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