Jupiter's de Blonay: Fintech is challenging behemoth banking sector

Are banks 'too big to change'?

While interest rate increases have reignited interest in financials stocks, Guy de Blonay, manager of the Jupiter Financial Opportunities and International Financials funds, suggests the recovery story has become more complex given the challenge fintech companies are posing to the sector.

In recent weeks, the US Federal Reserve has outlined plans to reduce the size of its balance sheet, and increased the Fed funds rate by 0.25%, the second such move in six months with more expected. A tightening labour market has led to a more hawkish stance from chair Janet Yellen. Combined with the Trump effect, policy normalisation at the Fed has led to a rush towards cyclical financials - namely, banks. To some extent, this has come at the expense of specialist global payments and financial technology businesses. Kames' McEntegart boosts bank exposure ahead of rate hikes Banking...