The ARK Fintech Innovation ETF is likely to ride the revolutionary changes shaping the financial services industry

The ARK Fintech Innovation ETF (NYSEARCA: ARKF) invests in companies across the globe that are engaged in financial technology innovation. This can be through the introduction of a technologically enabled new product or service that potentially changes the way the financial sector works. Some examples of these are innovations in transaction processing, blockchain technology, new intermediaries or disintermediation, and risk transformation.

ARK Fintech Innovation ETF (NYSEARCA: ARKF)

ARKF is an actively managed ETF with an expense ratio of 0.75%. As on July 21, its top five holdings were:

The ARKF ETF’s market price has delivered the following returns as on June 30:

• 3 months – 54.73%
• YTD – 31.57%
• 1 year – 41.03%
• Since inception – 39.44%

Proposed national payment charter to be a boon for fintechs

ARK analyst George Whitridge observes that The OCC is looking to launch nationally-applicable charters for payments companies this fall. The news was confirmed by Brian Brooks, Acting Comptroller of the Currency, in a recent interview with the ABA Banking Journal. Brooks argued that a national payment charter keeps pace with consumer behavior and eliminates the need for fintechs to seek state-level money transmission licenses.  (ETF Trend)

According to the Financial Revolutionist, The first version of the payments charter would be a national version of a state money transmission license. However, about two years on, a “payments charter 2.0” would allow access to the Federal Reserve payment system, according to Brooks.

“In our view, the OCC’s proposed charters will be positive for the fintech industry, facilitating innovative business models, saving on card processing fees and, ultimately, enabling companies to transform cost centers into revenue drivers,” says Whitridge.

That augurs well for both ARKF and the fintech industry.

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