Why we are replacing $GS with $RKT in the Fintech 50 Index today

Today is 3 months from when Coinbase went public and we released the first version of our Fintech 50 Index.

The most controversial entry in our Fintech 50 Index was Goldman Sachs (GS) which we classed as Fintech because Goldman Sachs is a Fin that is so smart about Tech that they are almost Fintech.

I believe convergence is real and that there is not a big difference, beyond naming, between a Tech that became a regulated bank and a bank that became totally tech driven

That is why I chose to include GS in our Fintech 50 Index.

The problem is that other banks are also becoming equally smart and tech driven. If we include Goldman Sachs, why not JP Morgan, Bank of America or UBS?

I opted for a wide definition when building our Fintech 50 Index and included a) old Fintech like Visa and Mastercard b) Traditional Fintech ie selling tech to banks.  That wide definition remains in place, but as of today, by replacing GS with RKT in our Fintech 50 Index I am no longer including any legacy banks, no matter how tech smart and tech driven they are.

RKT (Rocket Companies, Inc)  is big enough to go into our Fintech 50 Index, but it is also plenty controversial.

Rocket Companies, Inc was founded by Dan Gilbert, co-founder of Quicken Loans and now 36th richest person in the world. Rocket Companies, Inc became RKT via an IPO in August 2020 and is currently embroiled in class action lawsuits for investors in the class period 25 February 2021 and 5 May 2021. Those dates include a period in March 2021 when there was a big price spike. The lock up period in an IPO is 6 months which gets us to that class period.

By putting a company into our Fintech 50 Index we are NOT saying it is a good investment. Do. Your. Own Diligence ( DYOD). Among other factors look at revenue momentum, valuation and debt risk.

Daily Fintech’s original insight is made available to you for US$143 a year (which equates to $2.75 per week). $2.75 buys you a coffee (maybe), or the cost of a week’s subscription to the global Fintech blog – caffeine for the mind that could be worth $ millions.

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