The fintech space has experienced solid growth amid the increasing digitalization processes, thus changing the traditional financial sector. This industry is estimated to expand quickly over the next few years because of the high investment in technology-based solutions, allowing the global fintech market to hit $324 billion by 2026 with a CAGR of 25.18%.
However, the industry-specific challenges, coupled with market-wide correction, have affected the performance of fintech stocks, as evidenced by the 32.67% decrease in the Global X FinTech Thematic ETF (FINX) year-to-date (YTD) compared to SPDR S&P 500 Trust ETF (SPY) 12.84% loss over the same period. But, this dip presents contrarian investors the opportunity to scoop up shares of fintech stocks at a considerable discount.
