With Its Innovative Business Model, The Bancorp Looks Undervalued
Niche banks led the industry in 2020 and continue to perform well in a competitive banking environment, serving unique customer groups and offering differentiated financial products.
The Bancorp (NASDAQ: TBBK) is one of these players offering not only different kinds of lending products, but also its own unique payments software that serves fintech disruptors and other industries seeking access to banking products. With such an exciting business model, The Bancorp deserves a higher valuation to go with it.
With roughly $6.3 billion in assets, The Bancorp has carved out a niche among fintechs and others that don't have bank charters but still want to offer banking products or services. The bank invested heavily in building out the necessary payments infrastructure that allows it to provide the back-end services that companies need in order to offer some banking products under their own personal brands. These back-end services include the regulatory platform needed, as well as access to the payment networks run by Visa and Mastercard that actually facilitate card transactions.
Source Fool.com
