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Volatile FinTech Stocks Highlight Promise, Perils of Financial Services’ Digital Makeover

  • The FinTech IPO Index was up nearly 15% year to date, outpacing individual names that were up by high-double-digit and even triple-digit percentage points.
  • Earnings reports of digital upstarts in the financial services industry reveal that growth can be bumpy and volatile.
  • Some key themes emerging in the industry include companies building ecosystems spanning cards, cryptocurrency, loans, and modernizing payment processes.
  • Challenges for the digital transformation of financial services include regulatory scrutiny and increased efficiency in working with bank partners.

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