Although fintech has brought about a significant change in the financial industry, cybersecurity concerns continue to worry users. Against this backdrop, we think it could be wise to avoid fintech stocks Equifax (EFX), PagSeguro Digital (PAGS), and StoneCo (STNE). Analysts have recently downgraded each name.Fintech has brought about a significant change in the financial industry. It has improved various aspects of finance, including payments processing, insurance, and lending. The industry has also played a significant role in helping the world become highly digital in its communications and operations.
Although fintech has changed the way users transact finance, several fintech companies have been subject to several cybersecurity attacks. According to a study by The Clark School at the University of Maryland, a hacker attack takes place every 39 seconds on average. So, data breaches and user privacy are significant concerns for fintech companies, primarily given the sensitive nature of the data shared.
Analysts have recently downgraded fintech stocks Equifax Inc . (NYSE:EFX), PagSeguro Digital Ltd. (PAGS), and StoneCo Ltd. (STNE) in the wake of concerns that include security and poor growth prospects. So, we think it could be wise to avoid these stocks now.