Ark Funds CEO and Founder Cathie Wood joined Benzinga’s “Raz Report” this week and discussed the history of Ark Funds. Wood shared her thoughts on the fintech market, and where she sees huge growth ahead.

Wood on Fintech

“We think that fintech is probably one of the most misunderstood of all the technology platforms,” Wood said. Digital wallets are going to gut banks, according to Wood. Digital wallets will be responsible for customer’s banking and also loans, debit cards, and credit cards, as well as for buying crypto and stocks.

“Digital wallets are not only going to do our banking, they’re going to be bank branches in our pockets," she said. Banks will face “innovator’s dilemma” and have a hard time catching up, Wood said.

The Ark Funds leader mentioned Cash App from Square Inc (SQ) and Venmo from Paypal Holdings (PYPL) specifically as companies benefiting from the shift being led by millennials. In its 2021 Big Ideas list, Ark said the value of digital wallets per user could rise from $1,900 currently to $20,000 by 2025.

Ark Funds Holdings

Square is the second largest holding in the flagship Ark Innovation ETF ARKK, representing 6.3% of assets. Paypal is the 19th largest holding in the Ark Innovation ETF, representing 1.7% of assets. Square and Paypal are both top 10 holdings in the Ark Next Generation Internet ETF ARKW.

Square and Paypal rank first and second, respectively, for assets in the Ark Fintech Innovation ETF, representing 9.9% and 5.4%, respectively, of the fund’s assets.

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