Best FinTech Stocks to Buy
According to International Data Corporation, an American intelligence firm,more than 60% of the world GDP will be digital within the next two years. Assuch, growth in the industry for any business, including the business offinance, will be tied to digital offerings and relationships. Some regions ofthe world seem to be adopting better to the change than others. Surprisingly,a study into the fintech universe by Findexable, a fintech research firm,reveals that commercial power is no longer tied to financial power in adigital world.The study highlights how fintech hubs are increasingly not in what one wouldassume are the traditional finance capitals of the world, like London, Paris,or New York, but in more developing economies like Brazil and India. Theimplications of this seem to be motivating big banks and finance firms to movetowards digitization, but Findexable has cautioned that fintech hubs can onlybe developed by governments willing to maneuver policy, harvest local talentpools, and allow digital businesses to operate freely in the market.Story continuesRegulation has often been a thorny issue in the fintech world, as in any otherindustry, with most major players viewing it with suspicion and terming it badfor business. However, unregulated digital markets have the power to wreakhavoc, as recent stock market fluctuations based on meme wars have exhibited.Fintech is also susceptible to hacking, which often leaves users vulnerablenot only because their money might be stolen but their data as well. All theseconsiderations need to be taken into account to develop a sound policy onfintech.Overall, analysts are bullish on the fintech industry. But it remains vitallyimportant for investors to do research before betting their money. The entirehedge fund industry is feeling the reverberations of the changing financiallandscape. Its reputation has been tarnished in the last decade, during whichits hedged returns couldn’t keep up with the unhedged returns of the marketindices. On the other hand, Insider Monkey’s research was able to identify inadvance a select group of hedge fund holdings that outperformed the S&P 500ETFs by more than 124 percentage points since March 2017. Between March 2017and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%,vs. 72.4% for the SPY. Our stock picks outperformed the market by more than124 percentage points (see the details here). We were also able to identify inadvance a select group of hedge fund holdings that significantlyunderperformed the market. We have been tracking and sharing the list of thesestocks since February 2017 and they lost 13% through November 16th. That’s whywe believe hedge fund sentiment is an extremely useful indicator thatinvestors should pay attention to. You can subscribe to our free newsletter onour homepage to receive our stories in your inbox.best fintech stocks to buyPhoto by Edi Kurniawan on UnsplashWith this context in mind, here is a look at the top 10 best fintech companiesand stock options in 2021 that are expected to pay good dividends to investorsthis year.
7. Ally Financial Inc. (NYSE: ALLY)
Ally Financial Inc. (NYSE: ALLY) is a Michigan-based financial servicescompany that was founded by General Motors Company (NYSE: GM) in 1919. It is7th on our list of top 10 best fintech companies and stocks in 2021. Althoughthe company provides various services such as car financing via direct banks,it is also popular because of an electronic trading platform that has morethan 350,000 users. The company uses the platform as an online market forauctions of cars. Since 2000, the company has sold more than 5 millionvehicles through the platform, including more than 250,000 in 2019.The market cap of the firm is $17.5 billion and it posted more than $6 billionin profits in December 2020. The company’s stocks performed well during thepandemic since the online-only bank nature of its business helped customersstuck at their homes. The firm is aiming to replicate its success in the autoindustry with expansion plans into the mortgage market to meet growth targets.Ally Financial is one of the best performing fintech stocks to buy for 2021 asit is expected to give handsome returns to investors.
Finance Technology Companies In Dallas To Know
1. Bestow Life Insurance 2. Apex Clearing Corporation 3. Quiltt 4. Alkami 5. Zirtue 6. MoneyGram International 7. Clean Finances 8. Zabo 9. Capital OneCapital OneFounded: 1994Focus: Banking and Financial ServicesWhat they do: Capital One is blending peace of mind with advanced technologyto create a seamless digital experience for its customers. The organizationhas adapted its products for online platforms that include a mobile app,cardless paying capabilities, and ways to pay with ApplePay and othercontactless methods. Plus, virtual card numbers allow people to protect theirpersonal information while completing online transactions, making for asmoother payment process.Bestow Life InsuranceFounded: 2016Focus: Life InsuranceWhat they do: Launched by Melbourne O’Banion and Jonathan Abelmann, BestowLife Insurance creates products and software with the intention of making lifeinsurance more accessible. Utilizing data and AI, the company enables peopleto discover if they’re approved for life insurance by simply answering a fewquestions, thus taking the hassle out of the insurance process. Additionally,Bestow Life Insurance’s APIs allow their partners to offer bespoke lifeinsurance coverage to their customers.Apex Clearing CorporationFounded: 2012Focus: Digital Clearing + CustodyWhat they do: Apex Clearing Corporation provides digital clearing and custodysolutions to enable frictionless investment access. The company’s clearing andcustody platform boasts industry networking and tooling integrations tosupport a variety of financial instruments, while their suite of APIsfacilitates the complete trading and investing lifecycle. Apex ClearingCorporation collaborates with various organizations including Robinhood,STASH, SoFi and Firstrade.DALLAS-FORT WORTH TECH COMPANIES HIRING NOWTons of top companies in Dallas-Fort Worth have open jobs and are looking fortalent. Find out who’s hiring right now.ZaboFounded: 2018Focus: CryptocurrencyWhat they do: Zabo has developed an API that connects crypto wallets to anyapplication with a few lines of code. The company’s API is designed to reduceintegration lead times by up to 80 percent, helping users save time whilelending their applications greater reliability and data consistency. Zabo’stechnology can be used for financial tracking, digital banking, investments,lending, cryptocurrency taxes and more.RyanFounded: 1991Focus: Business Tax ServicesWhat they do: Ryan is a global tax services and software provider dedicated toliberating its clients from the burden of being overtaxed so they can free uptheir capital to invest, grow and thrive. The company specializes in taxrecovery, strategic consulting, compliance processes management and more.Ryan’s client base includes American Airlines, BP, Chevron and Cintas.MoneyGram InternationalFounded: 1940Focus: Money TransfersWhat they do: MoneyGram International specializes in cross-border, person-to-person money transfer and payment services. The company enables people to sendmoney through in-store locations or online, offering a mobile app that allowsusers to pay bills, manage their personal information and view theirtransaction history. MoneyGram International currently offers its services inmore than 200 countries and territories.ZirtueFounded: 2018Focus: Relationship-Based LendingWhat they do: Zirtue has created a lending application designed to simplifyloans between family and friends. Users can set their loan amount and paymentterms before selecting a friend or family member and submitting their loanrequest, thus removing the need for early payment penalties and credit checks.Zirtue’s aim is to radically expand credit access and improve the lives ofconsumers while helping businesses increase profits.iDonateFounded: 2010Focus: Digital FundraisingWhat they do: Based in nearby Plano, iDonate has developed a digitalfundraising platform for nonprofits. The company enables nonprofits to easilyconnect with their donors, execute digital fundraising strategies and discovernew ways to grow their online giving. iDonate’s software integrates with avariety of CRMs including Blackbaud, Salesforce and Virtuous.BlucoraFounded: 1996Focus: Tax SolutionsWhat they do: Based in neighboring Irving, Blucora is dedicated to bringingsimplicity and transparency to the tax filing process. The company operates aportfolio of brands, which includes the online tax filing system, TaxAct aswell as the financial advisory organization Avantax Wealth Management.Blucora’s aim is to empower people with the tools, knowledge and services theyneed to increase their wealth and improve their financial future.Quiltt
Founded: 2009Focus: Digital BankingWhat they do: Located in neighboring Plano, Alkami offers a cloud-baseddigital banking platform. The company’s platform is designed to facilitateretail and business user on-boarding, engagement and account servicing,boasting fully-integrated money movement tools intended to increase depositsand drive user engagement. Alkami’s data engine also allows users to trackperformance and user engagement in an effort to improve competitiveness andbusiness results.Clean Finances
Founded: 2014Focus: BookkeepingWhat they do: Clean Finances has created a central platform in an effort tomake bookkeeping easier for businesses. The company’s mobile-compatibleplatform allows users to view month-over-month or year-to-date trends andcheck in with their dedicated bookkeeper about any financial questions theymay have. Clean Finances’ mission is to help organizations save time, discoverclarity and grow their businesses.BorrowWorks
Photos via Shutterstock, company website screenshots and social media
Fintech Stocks: 10 Best Fintech Stocks to Buy in 2021This article includes links which we may receive compensation for if youclick, at no cost to you.Despite the rise of technological innovations like the internet andsmartphones, many consumers still turn to cold hard cash to make purchases. Arecent survey found that physical cash is still used in 19% of payments andthat the average American has $74 worth of bills in their wallet at any giventime.But that’s slowly started to change in recent years. The use of cash forpayments has declined from one-third of all payments made back in 2017. Andit’s very likely that the global pandemic has helped to accelerate consumers’desire to use digital payment systems.Enter the financial technology (fintech) industry. Fintech companies arerevolutionizing how consumers pay our favorite coffee shop for a latte, how wesplit the check after a night out with friends, have allowed us to buy digitalcryptocurrencies, and so much more.The fintech market is expected to nearly triple in size over the next 10 yearsand it’s creating a massive opportunity for publicly traded companies andinvestors alike. That’s why we’re highlighting 10 of the best fintechcompanies that should be on your investment radar.
10 Top Fintech Stocks of 2021
1. Square 2. PayPal Holdings 3. Apple (with Goldman Sachs credit card; Apple Pay) 4. MercadoLibre (PayPal holds a stake) 5. Visa 6. Mastercard 7. Coinbase Global 8. Green Dot Corporation 9. Lemonade 10. Upstart Holdings
Where to invest $500 right now
Lots of new investors take chances on long shots instead of buying shares ofgreat companies. I prefer businesses like Amazon, Netflix, and Apple — they’reall on my best stocks for beginners list.There’s a company that “called” these businesses long before they hit it big.They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at$15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share.Take a look where they are now.That company: The Motley Fool.For people ready to make investing part of their strategy for financialfreedom, take a look at The Motley Fool’s flagship investing service, StockAdvisor. They just announced their top 10 “best buys now” across the entirestock market. Whether you’re starting with $100, $500, or more, you shouldcheck out the full details.Click here to learn more
Fintech ETFs: Invest in a Collection of Fintech Companies All at Once
If you don’t feel comfortable picking one tech stock (or a few!) in thefintech space to invest in, there’s another option. Investing in an exchange-traded fund (ETF) can give you exposure to a lot of fintech stocks all atonce, without the risk of picking one winner.The Global X FinTech ETF (NASDAQ: FINX) is invested in 39 fintech companiescomprising insurance, mobile payments, investing, fundraising, and lending.Over the past five years, the ETF has gained more than 200%, compared to about120% for the S&P 500.
What are fintech companies?
Fintech companies are companies that use technology in the financial servicesindustry. Large payment processing companies including Mastercard areconsidered fintech companies, and so are cryptocurrency exchanges likeCoinbase. Traditional fintech companies, like PayPal Holdings and Square, mayoffer peer-to-peer (P2P) payment services and payment solutions for merchants.
What is a fintech stock?
A fintech stock is a company that provides technology service in the financialindustry, and that is publicly traded on a stock exchange. Fintech stocks canrange from payment processing companies like Visa to banking-as-a-service(BaaS) companies like Green Dot. Many tech stocks, including Apple, can alsobe fintech stocks if they offer any type of financial service.
What are the best fintech stocks?
There are many publicly traded companies benefiting from the fast-growingfintech market. Some of the best-performing fintech stocks have been Square,PayPal Holdings, and Upstart.Pick Like A Pro
Where to invest $500 right now
Lots of new investors take chances on long shots instead of buying shares ofgreat companies. I prefer businesses like Amazon, Netflix, and Apple — they’reall on my best stocks for beginners list.There’s a company that “called” these businesses long before they hit it big.They first recommended Netflix in 2004 at $1.85 per share, Amazon in 2002 at$15.31 per share, and Apple back in the iPod Shuffle era at $4.97 per share.Take a look where they are now.That company: The Motley Fool.For people ready to make investing part of their strategy for financialfreedom, take a look at The Motley Fool’s flagship investing service, StockAdvisor. They just announced their top 10 “best buys now” across the entirestock market. Whether you’re starting with $100, $500, or more, you shouldcheck out the full details.Click here to learn moreChris Neiger owns shares of Apple. The Motley Fool owns shares of andrecommends Apple, Lemonade, Inc., MercadoLibre, PayPal Holdings, Square,Upstart Holdings, Inc., and Visa. The Motley Fool recommends Green DotCorporation and recommends the following options: long January 2022 $75 callson PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023$130 calls on Apple. Millennial Money is part of The Motley Fool network.Millennial Money has adisclosure policy.