Stocks of fintech companies that implement digital technology to the financial world are known as fintech stocks. Fintech companies apply the advancement in technology to payment systems, e-commerce, cryptocurrencies, money transfers, personal finance, lending, and banking.
With the growth in technology, fintech stocks offer excellent opportunities for investors to gain from the new trends. The implementation of technological innovation to handle finances has created multiple new avenues. Financial services have become cheaper and simpler, and fintech stocks have become more attractive and value-generating.
Some of the leading fintech stocks belong to large, well-established companies, while others are the budding startups with innovative and disruptive technology. Investors can invest in both for long-term returns and short-term income.
|JPM||JP Morgan & Chase||$167.83||73.85%||501.5B|
|SSNC||SS&C Technologies Holdings||$74.63||23.09%||19.0B|
|GDOT||Green Dot Corp||$43.15||-22.25%||2.4B|
|HVBTF||Hive Blockchain Technologies||#N/A||#N/A||#N/A|
|DFS||Discover Financial Services||$115.44||84.62%||34.6B|
|TSS||Total System Services||$12.80||48.84%||122.5M|
|JKHY||Jack Henry & Associates||$164.70||10.12%||12.2B|
Factors to Consider Before Investing in Fintech Stocks
Investors must consider certain parameters that are specific to a trending and disruptive industry like fintech. The factors to be considered include the financial metrics like revenue growth rates, profit margins, total addressable market, the total payment volume, and gross merchandise volume.
Fintech is a dynamic business, with innovations popping up every now and then. Therefore, investors should look for fintech stocks that can survive the tough competition with its large and innovative suite of products and services, intellectual property assets, and rapid research & development.
Investors must also consider the risks associated with investing in fintech stocks. Fintech stocks have broad exposure to credit risks, consolidation, and regulations. A balanced approach can help investors create a profitable portfolio with fintech stocks.
Which Fintech Stocks Should I Buy?
A wide variety of fintech stocks trade on the stock exchanges. Some of them are big banks that use digital technology for running their businesses, while others are the small growing startups with largely untapped potential markets. We have aggregated a list of the best fintech stocks, including both large and growing companies.
Investment in fintech stocks is an ideal proposition for all sorts of investors, be it income, growth, or value investors. The big banks generate high annual returns, high yields, and are exposed to heavy regulations. On the other hand, the upcoming companies are riskier, but they have high returns potential in addition to excellent value and growth opportunities.