The public markets appear positive that financial technology companies are going to do well coming out of lockdown. Large listed fintechs, such as PayPal, Adyen and Afterpay, have now surged beyond their pre-Covid stock prices to hit all-time highs. Qatalyst Partners, a US boutique investment bank, also calculated that its fintech index is now outperforming the wider tech sector and the Nasdaq.
I am confident there is a bright future for the UK fintech sector too, if they can ride this Covid-19 crisis. Let's hope the markets have got this one right.
This newfound optimism, if it continues, suggests not only that the economy might be bouncing back, but that fintech startups are well placed to benefit. That could also mean that, for many fintechs, their darkest days are behind them, and they’re in store for renewed consumer activity in the midterm.