FinWise Bancorp (FINW) Stock Offers High Upside at High Risk

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FINW Bancorp (NASDAQ: FINW) is a small finance company that has partnered with fintech players to expand its market and take on considerable growth. This is a trend that may see an upsurge in the future, as fintech continues to dominate the mainstream. However, this trend presently faces severe challenges, especially from the macroeconomic front.

INKT Stock Price Prospects

FINW stock is one that holds significant upside potential. Being a small bank, with a market capitalization of only $120 million, FinWise is aware of its limitations. With its IPO conducted as recent as in December 2021, the company is a fresh player and has decided to take the fintech strategic route. This vastly enhances its financial access and total addressable market. Given this high-growth and high-profit oriented model, the company has taken on a rocketing climb, seeing net interest income climb by 51.4% YoY on June 2022

FinWise Bancorp Surrounded by Risk

FinWise Bancorp is a small player, in the finance world that dabbles in the fintech realm. There are a number of risks the FinWise stands exposed to, as a result of its unique business model. The company’s strategic partners are essentially fintech players which provide to it subprime loans in volumes of billions of dollars. This makes the company’s balance sheet extremely high risk, which explains why FINW stock has shed almost 60% of its value since March of this year. In addition to macroeconomic risks and an ever climbing interest rate, most of its strategic partners stand in an awkward regulatory position which could spell problems down the road.

Conclusion

FINW stock is a prime example of a high-risk and high-reward play. It is presently be facing the brunt of severe macroeconomic headwinds, given the present market climate. However, there is no denying the growth potential inherent to its business model.

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