Chime®¹ is a fintech company that provides banking services, although technically speaking, it is not a bank. The company provides free checking and high-yield savings accounts, online banking, and a debit card with access to over 50,000 ATMs². Founded in San Francisco in 2012, today Chime® has over 14 million customers. But it was the company’s Q financial report that really rallied the stock. Dave saw its revenues for the quarter rise by 41 percent year-over-year to US$92.5 million, the company’s fourth consecutive quarter of year-over-year revenue growth.
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Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation. As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. For the full year 2025, Mizuho reduced its Clover growth estimate from 11% to 9%. However, this still represents a low double-digit percentage growth when excluding gateway conversions.
And while everyone seems to remain fixated on artificial intelligence (AI), it’s important not to forgot about a trend that has been ongoing for several years. Conveniently named Future FinTech Group is based in China and specializes in e-commerce and blockchain. This stock has been trending downward a bit of late, and this may be a great opportunity to get on board. Futubull and Moomoo offer a wide array of market data and wealth management tools while maintaining a social media aspect.
- After the company released its positive Q financials, its share price shot up to US$106.50 on August 8.
- AI is being adopted increasingly in financial markets, specifically regarding investment decision-making.
- Melissa holds a bachelor’s degree in English education as well as a master’s degree in the teaching of writing, both from Humboldt State University, California.
- The secured Chime Credit Builder Credit Card is issued by The Bancorp Bank, N.A.
Features to Look for in Fintech Stocks
However, it ended up canceling the deal and has since faced regulatory issues with the Chinese government. In July 2023, Ant Group bought back some shares from investors at a valuation of $78.54 billion. Despite its troubles, this still makes Ant Group the world’s most valuable private fintech company. And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.
This online payment system offers all the functionality of a credit card without having to swipe your card or give out your bank account number (which protects you from potential hackers). Analyzing recent acquisitions or funding rounds of similar companies helps investors understand a fintech’s relative value and its potential for growth. A big element of fintech’s popularity is its mission to reach underserved populations, such as those without access to traditional banking services, enabling financial inclusion and empowerment. Whenever you have a high-growth and relatively young industry, it can seem intimidating for investors to try choosing one or two stocks. And that’s especially true in a volatile and unpredictable market environment like we saw in the bear market a few years ago. Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q database of more than 1,000 elite hedge funds.
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The market is looking beyond present headwinds and paying more attention to future opportunities and tailwinds. With a fintech comeback in its early stages, now may be the time to begin diving back into this space. Shares in Robinhood grew by more than 66 percent over the fourth quarter to US$37.26 on December 31, 2024. She covers finance as well as real estate, technology, pop culture, and more.
Coinbase Global (NASDAQ: COIN)
- Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.
- For reference, we include the date and timestamp of when the list was last updated at the top right of the page.
- But over the following two years, its growth stalled out as soaring interest rates prompted its partners to rein in their lending activity and their customers to take out fewer loans.
- As the world moves away from cash and towards digital payments, there are plenty of opportunities for these stocks to grow even more.
- An individual using a laptop to access the fintech platform to manage their finances.
For example, companies that develop new digital payment-processing solutions are considered fintech, as are companies that build and operate person-to-person payment applications. Traditional financial institutions are also investing heavily in fintech products to stay relevant. This has made fintech a high-growth industry, which presents a significant opportunity for investors to invest in companies that are leading financial innovation. In addition to investing in single fintech shares, you also have the option of investing in fintech companies via a Fintech ETF. In the table below and in the stock profile you can find out in how many and in which ETFs a particular fintech stock is included. If you would like more detailed information on a particular stock, you can click on it to go to the corresponding stock profile.
Our AI Score evaluates alternative datasets and financial metrics to highlight the best-performing stocks, while real-time updates on prices and market trends keep you informed. Use these insights to find stock ideas and opportunities in the fintech sector. They largely perform in correlation with consumer spending and business investment. For example, companies that develop technology for insurance companies aren’t inherently cyclical since insurance is a rather recession-resistant business. On the other hand, companies that develop payment technologies, which are more vulnerable to the effects of market forces, are more likely to experience significant slowdowns during recessions. From digital payments and fraud prevention to AI-powered insurance and blockchain technology, fintech continues to revolutionize traditional finance.
According to the company’s estimates, Square and Cash App both have huge total addressable markets, with a combined gross profit opportunity of $205 billion. By introducing new products and services, the business hopes to draw in new customers, while cross-selling to existing ones to increase monetization. As Barron’s recently discussed, the world is isn’t done making the switch from cash to digital payments. As this trend keeps playing out, both companies stand to experience continued double-digit earnings growth. For the September quarter, the company reported solid growth in areas like gross profit up 21% year over year (YOY) and adjusted EBITDA, up by near 45.9%.
However, investors worry Revolut has lost value, with shares selling on secondary markets at a significant discount from their past price. To help you better understand this enticing business, Forbes Advisor has profiled ten of the largest privately held fintech companies on earth. Since they have not yet held an initial public offering, you cannot buy shares of private companies on the stock market.
Dave (NASDAQ:DAVE)
That approach helps its partners reach younger and lower-income applicants with limited credit histories. Additionally, many consumers today prefer to manage their bank accounts online or via a mobile app instead of going to a bank in person. The company’s second-quarter earnings report was excellent, with an over 100% increase in revenue and a boost of nearly 2,000% net income. It began as a way for small businesses to accept credit card payments without having to buy expensive point of sale systems. Square is one of the buzziest fintech stocks on the stock market right now. This is definitely one of the top fintech stocks to watch in the coming months.
This wide category includes companies that integrate modern technology into financial operations. Fintech companies include, for instance, those that create and run person-to-person payment applications and those that develop innovative digital payment processing solutions. Companies that use fintech are considered to be a part of the new online banking and payment system that includes players like PayPal, Venmo, and Square. These companies offer faster and more efficient ways to exchange money electronically than going through traditional banks.
According to a Deloitte survey, the biggest obstacle to generative AI adoption in Fintech stocks financial services, according to 35% of enterprises, is real-world errors. Financial organizations are hesitant to use AI tools directly with customers because of regulatory sensitivities. Within a year, Morgan Stanley introduced its “Debrief” assistant, which OpenAI powers. The terms finance and technology are combined to form the term fintech.
