If you invested in the S&P 500 at the start of 2015, by the end of trading today, you would have enjoyed a return of … 1.04%. Yeah, not impressive.
But had you invested in the portfolio of fintech stocks Bank Innovation tracks, you would have scored a return of 39%. Yeah, impressive.
Whether the soaring fintech stocks are a sign of a bubble or not, I can’t say. What I can say is that there are some wildly impressive numbers being posted by publicly traded fintech companies in 2015. To date, here are some noteworthy growth rates:
- LendingTree +107%
- First Internet Bank +91%
- Vantiv +55%
- Total Systems Services (TSYS) +64%
Alas, not every public fintech stock has performed well so far this year. On Deck Capital stands out for its 49% decline in value in 2015 — it IPOed in December 2014. It should be noted that the -49% performance includes a 28% bump in stock price today for ONDK as a result of its new partnership with JPMorgan Chase & Co. to provide small business loans.
The companies in our fintech portfolio are:
- ACI Worldwide Inc
- Bottomline Technologies
- Diebold Inc
- Envestnet Inc
- Fidelity National Information Services
- First Data Corp
- First Internet Bancorp
- Fiserv Inc
- Green Dot Corporation
- Heartland Payment Systems, Inc.
- Jack Henry & Associates, Inc.
- LendingClub Corp
- Lendingtree Inc
- Mitek Systems, Inc.
- Monitise Plc
- NCR Corporation
- NetSol Technologies Inc.
- On Deck Capital Inc
- Paypal Holdings Inc
- Q2 Holdings Inc
- Square Inc
- Temenos Group AG
- Top Image Systems Ltd.
- Total System Services, Inc.
- Vantiv Inc
- Virtual Piggy Inc
- Worldline SA
Online payments and alternative lending companies are fuelling the growth of fintech ecosystem. Payment companies like Paypal and Square were one of the early stage fintech companies and alternative lending companies like Lending club and Prosper are changing the whole lending ecosystem.