** Seaport Research Partners says the launch of Chinese artificial intelligence model DeepSeek is ultimately neutral or a modest positive for the fintech sector overall
** DeepSeek's low-cost AI model has raised concerns over some U.S. tech companies' decision to splurge billions of dollars in AI investment
** Brokerage says the development will ultimately improve fintechs' operating costs as they increasingly utilize low-cost AI-driven processes to support their businesses
** Adds that the rise of AI could also create new revenue opportunities for fintechs from here, but it will depend upon how committed a company is on that front
** Fintech valuations are currently reasonable, which makes the development a potential buying opportunity given AI models are a modest positive for the industry - Seaport
** Brokerage says in terms of fintech stocks, there could be some shift towards a more defensive posture in the near term
** Seaport expects 2025 to be a heavy "news" year for fintech sector, where fresh developments could move the space rapidly in the short term
(Reporting by Arasu Kannagi Basil in Bengaluru)
((ArasuKannagi.Basil@thomsonreuters.com;))
