Last month we published the first version of the Daily Fintech Index. A few people suggested some additions, so here is the updated Index ranked by Market Cap:
|Jack Henry & Associates||5.3||JKHY|
|Fair Isaac Corp||2.8||FICO|
I added 5 names based on suggestions in comments. Four of them I would classify as data ventures. Call them Big Data or Data Science to be tech trendy. These are Markit, Factset, MSCI and Wisdom Tree. The latter is interesting because their ETF data is a big enabler for Fintech innovation such as Robo Advisers.
I also added four electronic brokers – Charles Schwab, TD Ameritrade, Interactive Brokers and eTrade. Broking is now almost completely a tech business. These e-brokers were born in an earlier era but they are just as Tech as the Fintech startups of this generation.
I deleted some for a bad reason. Stocks that are not traded on NYSE or NASDAQ are harder to track (using Yahoo Finance). In this Globalized era, why is cross border equities investing still such an inefficient market? If anybody knows a good free alternative to Yahoo Finance that does global stock markets, I would love to hear about it.
However even with some deletions, we have a healthy number in this Index – 23. Here is the updated Index ranked by Revenue Multiple:
|Jack Henry & Assoc.||4.1||JKHY|
|Fair Isaac Corp||3.3||FICO|
We will soon have an exciting addition to the Daily Fintech Index – PayPal. That will be as big an event in Fintech as the Lending Club IPO, but that is another story for another day.
– Please tell me if I have missed any.
– Must have the majority of revenues from Fintech.
– Could be Traditional Fintech, Emergent Fintech or New Wine in Old Bottles (traditional financial services companies that are now so automated that they are competitive with Fintech startups).
– Minimum $300m market cap (to avoid penny stock hype and ventures too small to be public).
– Could have been founded a few years ago or a long time ago (no ageist bias here).