Hello, Fintech Friends!

When we first introduced the TWIF Index in July, it was underperforming the Nasdaq Composite. With just a couple of weeks left in the year, the TWIF Index is up 57.2%, while the Nasdaq Composite and the S&P 500 are up 36.9% and 30.3% respectively. We wanted to create a simple, transparent index, that, perhaps, would not cover every public fintech company, but would provide a strong signal about the overall health of the industry.

I think we have succeeded in our ambition. First, it was indeed a fantastic year for many publicly traded fintech companies. "Fintech is back" is the consensus, and the TWIF index outperforming the market is a good proof of that. Second, the outperformance was very broad. Robinhood, Coinbase, Shopify and Nubank had an amazing year. But so did the older generation of fintech companies like FICO, Fiserv, PayPal and FIS.

However, big banks did fine too. JPMorgan is up 44%, Wells Fargo is up 46%, Bank of America is up 39%, and Citi (yes, Citi) is up 43% YTD. British banks did even better: NatWest is up 97% and Barclays is up 83%. As they say, "a rising tide lifts all boats". My hope for 2025 is that, if the tide starts to turn, fintech companies will be the ones still sailing toward new horizons.

Jevgenijs
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