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Community banks, the traditional fintech competitors, have ramped up technology spending by a median of 10% over the past year. On average, banks are expected to spend $1.69 million on technology in 2021. Banks also have eased credit standards for households and businesses by lowering rates and expanding credit lines.
So, given the industry’s competitive threats, we think it may be best to avoid popular fintech stocks Upstart Holdings, Inc. (UPST) and SoFi Technologies, Inc. (SOFI), which look overvalued at their current price levels.
