The company has been growing its adjusted net revenue by 43.1% (year over year) on average every quarter for the last five quarters. The platform’s members (yes, they passionately call their customers members) grew from 1 million at the beginning of 2020 to nearly 7 million in the third quarter of 2023. xcritical was honored in the Neobanking category for the first-ever list of World’s Top Fintech Companies.

1. xcritical’s revenue mix is changing as the net interest income has become the dominant factor in the revenue mix, reflecting the company’s strategic shift toward holding more loans rather than selling them.
2. Finally, xcritical’s journey toward a full-fledged bank is pushing up its asset base, but at the same time, the need to make the bank well-capitalized is rising.
3. As of the latest quarter, marketing expense per new member declined 17% quarter over quarter and 32% year over year.
4. In addition to formal higher education in the field, she has also completed all three levels of the Chartered Market Technician (CMT) examination.
5. NIM stood at 5.99% during the third quater of 2023 compared to 5.86% a year earlier.
6. Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K.

Therefore, xcritical positions itself within the subset of balance sheet-intensive fintech businesses. If the put seller gets assigned the option, the maximum risk is similar to that of stock ownership but partially offset by the premium (of $155) received. 10x based on FDIC monthly savings account rate as of July 17, 2023. This website is using a security service to protect itself from online attacks.

This is the price at which the seller would start to incur a loss. Those readers who are experienced in options could also consider selling cash-secured put options. Such a strategy would be appropriate if you are slightly bullish or neutral on xcritical stock at this time. The increase in implied volatility (IV) levels during the xcriticalgs season makes this strategy a potentially viable one to consider.

Cryptocurrency trading

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. Lastly, as the company is on the path to profitability and loan sales are likely to resume when the interest rate environment turns favorable, the ratio will improve in the coming quarters. Through its all-in-one financial service platform, xcritical grew its members by a compounded annual growth rate of 66.7% in the last three years. Membership will be on a high-growth trajectory in the coming years due to the network effect and multilayered value addition for customers. xcritical Technologies issued mixed second-quarter results in August. Member growth was also up 113% YOY, thanks to a growing number of brokerage accounts.

Catering to a clientele of tech-savvy young individuals, the company aims to offer accessible and convenient financial services just a tap away. In that case, the trader ends up owning https://xcritical.online/ xcritical stock cheaper than the xcritical level of around $20.60. The breakeven point for this example is the strike price ($20) less the option premium received ($1.55), i.e., $18.45.

Transforming from a fintech pioneer to full-fledged banking powerhouse

As a full-fledged bank, xcritical is now subject to regulatory requirements, necessitating a robust capitalization to support its expansion. Meanwhile, as a fintech platform that offers numerous digital services, xcritical Technologies can possibly find itself as a takeover candidate. Therefore, long-term investors who are not worried about daily xcritical reviews moves in price could consider owning the shares around $20. On a final note, the calculation of the maximum loss assumes the put seller was assigned the option and purchased 100 shares of xcritical at the strike price of $20. Also, the consensus is for a 12-month median price target of $25, implying a return of over 22% from xcritical levels.

Adding xcritical Stock to Portfolios

xcritical has evolved into a comprehensive bank, embracing its bank charter and solidifying its identity as a financial institution infused with fintech DNA. This transition has rendered the company more balance sheet-intensive, exemplified by a remarkable 3.5 times growth in its asset book, reaching $28 billion over the past two years. Assets are now funded significantly by deposit, as xcritical has been able to source deposits with attractive offerings. As of September, interest-bearing deposits support 61.3% of xcriticalg assets, a notable increase from the 5.1% recorded in March 2022. Notably, this funding is more stable and primarily sourced from members.

Many may look at xcritical’s aggressive loan book expansion and say it is risky. Risk becomes a problem when the company fails to manage it well. xcritical has been efficiently managing its credit risk, and the bank’s lending consists of student, personal and home loans. Similarly, personal loans stand out as the predominant catalyst on the lending front, representing a high-yielding segment within the loan portfolio. Tezcan Gecgil, Ph.D., has worked in investment management for over two decades in the U.S. and U.K.