Hello, Fintech Friends!

September was a quiet month. It's one of those "off-season" months when companies have completed reporting their previous quarter and are focused on delivering great results for the upcoming earnings season. So the most notable event of the month was the Federal Reserve (finally) cutting the fed funds rate by 50 basis points. Investors now expect an additional 50 basis points cut by year-end.

There were winners from high interest rates. Think of Rohinhood earning interest on uninvested customer balances or Coinbase earnings interest on USDC reserves. There were also losers from high interest rates. Think of fintech lenders that faced frozen securitization markets and higher cost of funding. This earnings season, which was kicked off by JPMorgan last Friday, we will start hearing more about how all these fintech companies plan to grow when the rates normalize.

In the meantime, the TWIF Index is up 40% YTD, compared to roughly +22% for both, the S&P 500 and Nasdaq Composite. It's been a good year for fintech companies, and perhaps, the market, which is always forward-looking, tells us that their future looks bright too.

Jevgenijs
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Happy to hear what we can improve in this column!

Best-Performing Fintech Stocks

Sezzle (NASDAQ: SEZL), Dave (NASDAQ: DAVE), and ZIP (ASX: ZIP) continued their run in September. Sezzle is now up 775% YTD, Dave is up 422% YTD and Zip is up 359% YTD. These numbers are getting ridiculous, so let's see for how long this run continues.