Market value of big fintech rises to $1 trillion, more than the largest banks

• The market caps of payment stocks like Visa and MasterCard have eclipsed the value of Wall Street’s biggest banks, even as their balance sheets remain significantly smaller in comparison

• Square, Visa, PayPal and MasterCard are collectively worth $1.07 trillion, while the “big six” banks, which include JPMorgan, Bank of America, Wells Fargo, Citigroup, Morgan Stanley and Goldman Sachs are worth less than $900 billion in total

• A large portion of gains in market value have come in 2020, as investors continue to reward software-based tech companies amid the pandemic

• Meanwhile, shares of traditional Wall Street banks have come under pressure amid low interest rates and fears of rising loan defaults as the economy continues to suffer during the coronavirus pandemic

Source: CNBC

Vedang R. Vatsa

IT & Management Consultant