Bank equities are ultimately dictated by their earnings, which are predominately driven by the value of mortgages that are lent out as well as some business lending. Most of the FinTech’s focus today has been on peer to peer lending and savings and/or investment apps which are not large revenue drivers for the big 4 banks. In the future, if a particular FinTech is able to disrupt the funding side of a large bank’s businesses (i.e. term deposits and general deposits) then this in turn could be used to actively offer mortgages such as those that are offered today. Until this happens though there will be very little effect on bank equities.
Join our investment community. Be the first to receive NAOS News, Podcasts, Insights and Invitations.
By subscribing, you consent to NAOS using your personal information in accordance with its Privacy Policy, a copy of which is available here.