With folks looking to avoid going into banks and boosting the use of online payments and digital wallets, fintech’s applications are being highlighted during the coronavirus pandemic, which is benefiting ETFs such as the ARK Fintech Innovation ETF (NYSEARCA: ARKF).
However, the growth trajectory of fintech was established well before Covid-19 was a daily concern and the industry’s exponential growth is expected to continue after the virus is quashed. That speaks to the long-term viability of ARKF.
The actively managed ARKF invests in equity securities of companies that ARK believes are shifting financial services and economic transactions to technology infrastructure platforms, ultimately revolutionizing financial services by creating simplicity and accessibility while driving down costs.
In fact, fintech is strutting its stuff in the wake of the coronavirus.
“The coronavirus pandemic will help fintech solutions become more mainstream and receive recognition and approval from regulators,” according to Calcalist. “For example, companies like Intuit, PayPal, and Lendio were all granted approval to participate in the U.S. government’s emergency lending program for small businesses, the U.S. Small Business Administration’s (SBA) Paycheck Protection Program.”
Fine Form for Fintech
With the global market still caught amid the coronavirus outbreak, social distancing has changed the way businesses operate logistically and more individuals are relying on payment processing via fintech to conduct transactions.
With more government-mandated stay-at-home orders forcing individuals into self-quarantine status, the business of retail must go on. With that, there’s been a considerable rise in the use of financial technology applications to make payments—something that should benefit the fintech space moving forward.
Data is already showing a marked increase in the use of fintech apps in Europe and the rest of the world will more than likely follow in tow.
“To conclude, in our estimate the coronavirus crisis is expected to increase the cooperation and the merging and acquisitions of fintech companies by the leading financial bodies,” according to Adkit Ltd. “Even though the value of fintech companies is expected to drop, the demand for the solutions they provide is expected to increase and their role as significant players in the financial sector will grow.”
ARKF member firms are companies that are powered by innovations and are working to disintermediate or bypass the current financial markets and challenge traditional institutions by offering new solutions that are better, cheaper, faster, and more novel and secure.
For more on disruptive technologies, visit our Disruptive Technology Channel.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.