The fintech sector delivered an outstanding performance in January. The first month of the year saw increased activity in the capital markets, the revitalization of the M&A market and a rise in the value of financing transactions. In addition to improving market trends, several important events took place in January.
Most importantly, the SEC approved the introduction of bitcoin spot ETFs in the US market on 10th January. The SEC approved the applications of 11 asset managers, including major players such as BlackRock and Fidelity. In spite of the fact that this was a significant milestone for the entire crypto market, bitcoin ETFs attracted only $1 billion in investment in the first days after launch.
HSBC’s latest multicurrency remittance and payments platform, Zing, has the potential to set a new standard in financial services. The app allows currency exchange and remittance in a wide range of currencies at prices close to the mid-market rate, with no hidden fees. Although this is a “must have” feature among neobanks, HSBC’s move could set a new direction in product development for the traditional banking sector, which is likely to be followed by other large banks in the future.
However, not all the news is positive. The sector reported an exceptionally high number of layoffs in January, totaling 23,238, which is the highest figure since 2018. The trend can also be seen among fintechs, with Brex laying off 282, Block 1,000 and PayPal 2,500 employees.
Don’t forget to check out our brand new video in which we examine the fintech sector’s performance more thoroughly:
Source: Peak
Cover: Depositphotos
