VCs expect a surge in startups offering lower rate mortgages, other loans now that the Feds cut rates | TechCrunch

The recent Fed interest rate cut impacts fintechs positively, especially those dependent on loans, benefiting startups like Ramp and Coast that rely on transaction fees.

Affirm's decline in stock price highlights the struggles faced by BNPL companies; with rising interest expenses, their model could not handle increased operational costs, impacting profitability.

While BNPL firms thrived under low rates, the interest rate hikes forced many like ZestMoney to shut down, underpinning the fragility of financing models in changing economic climates.

Lower interest rates, as seen recently, provide a crucial lifeline for fintech startups reliant on loans, allowing them to better manage operational cash flow and secure credit.

Read at TechCrunch