The COVID-19 pandemic made fintech companies highly popular as they made credit, payments, lending, and many more financial activities available readily on tap. However, this year has been challenging for the industry, with the Fed increasing interest rates aggressively to tame the surging inflation.
Fintech stocks have faced a similar fate to technology stocks as investors shifted their attention from these high-growth names. Investors’ declining interest in fintech stocks is evident from the ARK Fintech Innovation ETF’s (ARKF) 61.5% decline year-to-date.
