This weekly recap features updates on bank technology, payments, online lending and other news in the financial technology space. Send tips, ideas and chatter to firstname.lastname@example.org. For other recent fintech news, click here.
Financial technology stocks may have improving economic trends in their favor in 2017 but could also feel the technology sector's headwinds.
Wells Fargo senior global equity strategist Scott Wren said he thinks fintech stocks should do well if the U.S. economy improves as expected and if the global economy stabilizes or improves. Wren also said he thinks fintech companies tied to consumer spending and borrowing activity could see better revenues in 2017.
Yet fintech stocks seem pulled between two sectors in the equity market. Financials including bank stocks have made notable gains, while the technology sector has lagged since the U.S. presidential election.
Mark Kepner, an equity trader at Chatham, N.J.-based Themis Trading LLC, suspects that when people talk about the financial sector, they are not always including fintech companies. Instead, he thinks many companies broadly defined as fintech are often associated with the technology group. Like other technology names, large fintech companies could face uncertainty on issues such as the outsourcing of labor, according to Wren, who pointed out that it is unclear how the new administration will address offshoring.
In partnership news, JPMorgan Chase & Co. bolstered its relationship with mobile payment startup LevelUp by investing more than $10 million during the development of its Chase Pay mobile wallet app, according to The Wall Street Journal.
In global payments, Volkswagen Financial Services AG bought PayPoint Plc's mobile payments business for £26.5 million in cash. The deal includes PayByPhone, which allows consumers to pay for parking on their mobile phones.
Also in payments, Banco Bilbao Vizcaya Argentaria SA inked a deal to acquire Mexican online payments startup Openpay.
Peer-to-peer startup insurer Lemonade Insurance Co. filed for a license to do business in 46 states and the District of Columbia in 2017.
From Dec. 22 to Dec. 29, the SNL U.S. Financial Technology Index was unchanged.
S&P Global Market Intelligence released a fintech primer on four areas — digital lending, payments, blockchain and digital wealth management — of particular interest due to their rapid pace of growth, technological disruption, and regulatory and other risks. Click here to read the primer.