This article was first published in FinTech Finance on 13 July 2020.
Driven by new technologies, the alternative finance sector has evolved rapidly in recent years. It includes some of the most disruptive organisations the finance sector has seen, and has not always avoided controversy. In particular, peer-to-peer lending and crowdfunding have become common terms, giving both individuals and SMEs more choice in their borrowing and investment requirements.
Yet as the economic effects of Covid-19 make themselves felt, many of these disruptive businesses will suffer. Consumers and businesses who cannot afford their debts due to decreased incomes and job losses could have a massive impact. Revenue streams will dry up overnight and investors are unlikely to invest further amid so much uncertainty. So what risks do organisations face, and what can they do to stay afloat?
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