UBS Identifies Fin-Tech Stocks Set to Soar Amid Technological Transformation and Fiscal Support

UBS analysts have identified top-ranking stocks across four technological sectors, highlighting financial technology (fin-tech) as possessing notable short- to medium-term investment opportunities. Fin-tech is a leading disruptor undergoing technological transformation, expected to drive significant and lasting impacts.

Hartmut Issel, UBS's Head of Asia-Pacific Equities and Chief Information Officer, stated that many technological sub-sectors are considered leading indicators of today's innovation and social progress. Developments such as mobile technology aiding emerging markets and cloud technology assisting businesses with efficient data management exemplify this trend.

Financial technology continues to grow, driven by structural factors such as rapid urbanization, the digitalization trend surrounding mobile, cloud, analytics, social media, and emerging technologies, alongside a robust demand from millennials. Issel anticipates fin-tech revenues to grow at a compound annual growth rate of 11.5%, rising from $285 billion in 2022 to $680 billion by 2030.

As we look towards 2030, leaders in the financial technology industry are expected to stand out. The following stocks are predicted to benefit significantly from supportive fiscal spending and technological innovation, showing strong potential for market profitability in the short to medium term:

Mandiri Bank (PPERY.US) is projected to gain from interest rate cuts both domestically and in the U.S., which would aid in lowering bond yields and funding costs, thereby enhancing net interest margins.

Bank of America (BAC.US) is assessed as a well-managed, diversified institution capable of rebounding from current macroeconomic pressures and high-interest-rate-related challenges.

Barclays (BCS.US) plans financial target adjustments and capital returns to shareholders. Analysts indicate that its current stock valuation is underrated compared to its actual value or potential.

Goldman Sachs (GS.US) stands to benefit from interest rate reductions in major economies, presenting an attractive valuation based on 2025's price-to-earnings ratio.

Intercontinental Exchange (ICE.US) is poised to capitalize on increased market volatility and trading volumes, expected to remain high amidst uncertain macroeconomic conditions.

Intesa Sanpaolo Bank (ISNPY.US) is viewed favorably for its diversified income mix, with projected accelerated fee growth in the backdrop of declining interest rates.

Mastercard (MA.US) is expected to reap rewards from investments in disruptive technologies over the next decade, potentially expedited by the worldwide rollout of 5G technology.

Societe Generale (SCGLF) is noted as among the sector's most economical stocks, situated under book value at 0.4 times. Post-adjustments seen in market expectations following investor days and self-help actions, it is considered an attractive investment.

Standard Chartered (SCBFF.US) shares are below the industry average valuation, deemed unreasonable for a bank projected to achieve a 12% return on tangible equity and potential stock repurchases well above the $5 billion target.

Vonovia (VONOY.US) could experience a stock price catalyst through declining interest rates, alleviating anticipated pressure from heightened future funding costs.