Fintech stocks have consistently outperformed broader equity markets for nearly a decade, and 2024 was no different. 

Venture capital firm F-Prime Capital’s F-Prime Fintech Index has increased 40.5% year to date as of Dec. 20, compared to 32.6% for Nasdaq and 13.3% for the Dow Jones Industrial Average. The index consists of 50 publicly listed companies including PayPal, Coinbase and Adyen.

The Bank Automation News Stock Index stood at 431.35 as of Dec. 20, up 48.2% year to date, beating the S&P 500 index, which is up 25% year to date. 

BAN’s Stock Index is comprised of 20 publicly traded companies of various market capitalizations, including Alkami, nCino, Jack Henry, PayPal and Fiserv. The index is baselined to 2014. 

The macro

As the Fed began lowering rates this fall, fintech companies in wealth management, insurance and real estate saw a sharp uptick in share price, Abdul Abdirahman, principal analyst at F-Prime Capital, told BAN. 

The administration of President-elect Donald Trump, which has signaled its preference toward deregulation, less action by enforcement agencies and a more friendly approach to the growing crypto ecosystem, is expected to have a positive impact on the industry, Abdirahman said. 

With the macro economy working in its favor, the fintech industry might also see more IPOs along with M&A activity, he said. 

Fintech stocks are poised for growth on the heels of lowering rates and declining inflation, Abdirahman said, adding that the industry has a solid foundation of capital and innovation with new tech including gen AI, real-time payments and stablecoins to step into 2025. 

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