How the Fintech Rally Could Fizzle in 2024


Financial-technology companies have rallied in 2023 even as rates rose. Some could now face risks from falling rates, as well as stepped-up competition.

Higher rates did hit “fintech” stocks in many ways. Not only do growth stocks in general often trade at lower multiples during periods of rising rates, but fintechs in particular had benefited from near-zero rates for funding loans and encouraging risk-taking by trading customers.

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