According to recent statistics, Fintech stocks haven’t performed as well over the past twelve months as many people initially predicted they would. However, Fintech stocks have been growing, just not as much as first thought. Some Fintech stocks have performed slightly better than others, and in 2022 they represent just a 2.5% growth, which is down from the 8.6% growth the previous year.
What is FinTech in a nutshell?
FinTech (or Financial Technology) can be described as computer programs/services that are accessible from any modern computing device, such as smartphones, tablets, laptops and desktop computers. These services/programs are used to support and process online banking and other financial services. For example, FinTech solutions can be used to store money and other digital assets, as well as to purchase things, to send & receive money, and so much more.
The ABCD of FinTech today is regarded as AI (Artificial Intelligence), Blockchain Technology, Cloud Computing, and Big Data. Essentially, FinTech is an industry that has been designed to make paying for things, banking, and other financial services much easier, more accessible, and far more secure than ever before.
Examples of FinTech
The most common examples of FinTech companies in 2022 include things like:
– Blockchain and cryptocurrency startups
– Payment processing solutions for consumers with computing devices with internet/Wi-Fi connectivity
– Budgeting/robo-advising and stock-trading apps
– Challenger banks
– Digital lending
– Digital wealth management
– Peer-to-peer payment services
– Trading platforms
Some of the most popular Fintech companies in 2022 that many of you will already be familiar with by now are Visa (consumer payments), MasterCard (consumer payments), American Express (consumer payments), Intuit (accounting solutions), Finastra (banking Technology), and PayPal (consumer payments). With a casino PayPal deposit, for example, players can get funds into their gaming accounts securely and in an instant. PayPal can also then be used to withdraw winnings from that same account in the most secure way.
Some of the other top FinTech companies out there today are Checkout.com, Revolut, Monzo, OakNorthBank, Atom, Starling Bank, SumUp, Zopa, Zepz, SaltPay, Thought Machine, and Blockchain.com. You also have Clearbank, Tandem, GoCardless, Zilch, Allica Bank, PPRO Group, Paddle, TrueLayer, Lendable, and Smart, to name just a handful.
Why have some FinTech stocks not seen as much growth in 2022?
In 2022, several major FinTech stocks were greatly reduced to levels that most people were simply not ready for and could not have predicted. It was a tough year for some companies, and one of the main reasons for the decline in growth was raised borrowing rates/macroeconomic issues. This was due to inflation, which negatively affected cash flows in a big way.
Will FinTech stocks have a better year for growth in 2023?
Early estimates are that FinTech stocks will have a much better year for growth next year compared to 2022, and the main reason for this is heavy investment in the industry. The ongoing digitisation of financial services and money will continue to grow, plus technology will also improve to further stimulate growth. Predictions suggest that some FinTech companies will see much more growth than others.
For the time being, it’s unlikely that FinTech startups will completely replace traditional banking/financial institutions. However, FinTech will continue to become an integral part of corporate operations and for consumers around the world, which is why we will continue to see more growth over the coming years than we saw in 2022.
