In 2024, fintech saw a massive spike in the usage of AI, mostly for internal use cases like operational efficiency and fraud detection. fintech stocks However, issues with accuracy and privacy continue to restrict consumer-facing applications. According to a Deloitte survey, the biggest obstacle to generative AI adoption in financial services, according to 35% of enterprises, is real-world errors.
The company’s share price jumped over 12 percent in one day to US$52.30 on May 7. Sezzle’s stock increased in value gradually in the first half of 2024 to reach over US$78 per share in early August. After the company released its positive Q financials, its share price shot up to US$106.50 on August 8. The report showed that total revenue (less transaction related costs) reached a record high for the quarter, up 71.7 percent year-over-year to US$32.2 million.
Upstart Holdings Inc. (NASDAQ: UPST)
With a valuation that’s cheaper than many other large banks and a 2.4% dividend yield as of mid-2025, Bank of America is an outside-the-box fintech worth considering. You might be surprised at how many cash-based transactions are still happening around the world, and how many people still have their savings at brick-and-mortar banks that barely pay any interest. The KYC verification segment is predicted to grow at the highest CAGR during the forecast period. FinTech solutions automate KYC processes, reducing the need for manual verification and paperwork, which can be time-consuming and error-prone. These services validate customer-provided information against various data sources, ensuring the accuracy and authenticity of the information.
Top 5 NASDAQ Fintech Stocks (Updated January
- You might be surprised at how many cash-based transactions are still happening around the world, and how many people still have their savings at brick-and-mortar banks that barely pay any interest.
- Additionally, many consumers today prefer to manage their bank accounts online or via a mobile app instead of going to a bank in person.
- With innovation comes a degree of risk as these companies strive to carve out a niche and establish a strong market presence.
- An individual using a laptop to access the fintech platform to manage their finances.
- Futu operates two investing apps – Futubull in Asia and Moomoo in the United States.
- While it may not be the cheapest company on the market, there’s still huge potential for long-term growth to continue.
This partnership provides fintech companies with the opportunity to leverage traditional banks’ data and infrastructure to deliver value-added services, develop innovative solutions, and improve customer experience. These growth opportunities, driven by technological advancements, changes in consumer behaviour, and regulatory developments, make the fintech market a dynamic and promising sector with significant expansion potential. Cloud computing offers fintech service providers the ability to scale their infrastructure and services according to demand. This is essential for accommodating fluctuations in user activity and transaction volumes.
- Although its stock price has gone down a bit of late, earnings reports suggest Green Dot is seeing an increase in both income and revenue.
- In addition, AI can quickly identify and flag potentially fraudulent activities, reducing the risk of financial fraud, which is expected to help the market growth in the upcoming years.
- Currently operating in 34 states, it is the largest insurtech company in the United States.
PayPal (NASDAQ: PYPL)
Additionally, Block ()—which is known for its Square and CashApp services—will become the first fintech stock to be added to the S&P 500. Like the other tech stocks on this list, Root’s share price over the past year has been driven in large part by its excellent quarterly financial performance. After posting its Q financials, which included the best bottom-line quarterly results in the company’s history, Root’s share price grew by more than 350 percent from February 21 to US$39.11 on March 1, 2024.
Sam Altman says ‘enough’ to questions about OpenAI’s revenue
The company also offers mobile banking products, including a high yield savings account option. This reinforced investor confidence in the continent’s digital financial services. Priority is another fintech stock on this list that had a great fourth quarter in 2024. Shares in the company rose 88 percent over the period to reach US$11.75 per share on December 31.
In the scope of work, we have included solutions provided by players such as Rapyd Financial Network Ltd., Unicorn Payment Ltd., Stripe, Inc., Mastercard, Fiserv, Inc., and others. The banks segment secured the maximum share in the market in 2023, as banks can onboard new customers quickly and smoothly, reducing the time and effort required for account setup. To compile our list of the 11 best fintech stocks to buy right now, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Next, we focused on the top 11 stocks most favored by institutional investors.
Interactive Brokers
It does so through a proprietary cloud application that allows seamless integration into bank tech. However, there’s still even more room for Paypal stock to grow as the platform brings in more customers. The company’s revenue has grown consistently over the past several years, and this has been reflected in its stock performance. This was one of the largest single funding rounds in European fintech this year and it makes up more than half of the total capital raised this week. Shares in Robinhood grew by more than 66 percent over the fourth quarter to US$37.26 on December 31, 2024. The future is powered by artificial intelligence, and the time to invest is NOW.
With this background in mind, let’s take a look at the 11 best fintech stocks to buy right now. The biggest deal was by UK-based Propel Finance, which raised a massive $1.5 billion. This funding aims to boost lending to small and medium-sized businesses in the UK.
The company’s share price continued to climb, hitting US$170.59 by the end of the third quarter. After releasing its stellar Q financial report on November 7, which showed total revenue growth up 71.3 percent year-over-year, its stock value skyrocketed from US$250.47 to US$431.48 in one day. Based in the Netherlands, Adyen provides payment processing solutions to businesses and has operations around the world (including a large U.S. presence).
This information must not be relied upon in making any investment decision. Fidelity can not be held responsible for any type of loss incurred by applying any of the information presented. Enter your email address and we’ll send you MarketBeat’s list of seven best retirement stocks and why they should be in your portfolio.
With a massive customer base in Latin America, MercadoLibre has proven to be very adaptable to the needs of its users. MercadoLibre also has a tool called MercadoShops, which small businesses can use to make sales directly from their websites. There’s even a Visa debit card consumers can use to spend crypto and earn rewards. Thanks to its innovative loan approach, Upstart stock has climbed over 1000% in the past year. In just September, Upstart announced a partnership with Los Angeles Water and Power Community Credit Union in hopes of providing streamlined services to the 10+ million people in the area. For the full year 2025, Mizuho reduced its Clover growth estimate from 11% to 9%.
