The fintech sector is revolutionizing financial services through technology-driven innovation, covering payment technology, digital lending, buy-now-pay-later (BNPL), financial management software, insurance (“insurtech”), digital brokerages, digital banks (neobanks), and banking infrastructure platforms. Leveraging real-time data, AI-driven analytics, and user-centric digital experiences, fintech companies enhance efficiency, accessibility, and personalization of financial services. Without physical branches, fintechs can often target a wider addressable market than traditional financial firms, while also boasting higher margins.
Below is a list of notable public fintech companies.
Notable Public Fintech Companies
| Ticker | Company | Ticker | Exchange | Description |
|---|---|---|---|---|
| SOFI | SoFi Technologies | SOFI | NASDAQ | A digital financial services platform offering student loan refinancing, personal loans, mortgages, credit cards, and banking products. |
| RKT | Rocket Companies | RKT | NYSE | Leading online mortgage lender operating under the Rocket and Quicken brands. |
| TOST | Toast | TOST | NYSE | Provides mobile and digital payment processing and other services for restaurants. |
| AFRM | Affirm Holdings | AFRM | NASDAQ | Provides point-of-sale installment loans (BNPL) for e-commerce and retail. Its network of merchant partners includes major consumer brands. |
| XYZ | Block (Square) | XYZ | NYSE | Offers digital payments, merchant services, Cash App, and peer-to-peer payment services. |
| PYPL | PayPal Holdings | PYPL | NASDAQ | Provider of digital payments, peer-to-peer payments, merchant solutions, and mobile wallets. |
| HOOD | Robinhood Markets | HOOD | NASDAQ | Commission-free brokerage platform, offering trading of equities, options, and cryptocurrencies. |
| PAYC | Paycom Software | PAYC | NYSE | Provider of online payroll processing services and HR software solutions. |
| CHYM | Chime | CHYM | NASDAQ | Mobile banking platform offering fee-free accounts and financial tools. |
| LMND | Lemonade | LMND | NYSE | Digital-first insurance company leveraging AI to offer renters’ insurance, homeowners’ insurance, car insurance, and more. |
Fintech IPO Pipeline
Fintechs regularly tap the IPO market, across payment technology, digital banking, investment platforms, and embedded finance. Emerging fintechs are targeting niche verticals and innovative solutions, aiming to capitalize on renewed market interest and technological advancements. As AI models mature and traditional banks seek partnerships, more fintech players are likely to enter public markets.
Stay up to date with our IPO Calendar and the IPO Pro Pipeline to track upcoming listings in fintech, lending, and digital financial services.
HOW TO INVEST IN Fintech STOCKS
Investing in Fintech Stocks
Investors in fintech stocks gain exposure to disruptive technology reshaping financial services. Although influenced by macroeconomic factors like interest rates and regulatory dynamics, well-managed fintech platforms can quickly scale, expand product offerings, and capture market share
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Key Metrics for Fintech Stocks
Evaluate fintech companies by user growth, transaction volume, customer acquisition cost (CAC), lifetime value (LTV), net retention rate, and profitability metrics. Investors in digital lenders should consider metrics like loan origination volume, net interest margin (NIM), contribution margin per loan, delinquency and charge-off rates, and the percentage of loans held on balance sheet vs. sold to partners or investors. Payment processors and certain other fintechs will report their take rate on payment volumes. For financial software providers, pay attention to the ARR (annual recurring revenue), net dollar retention, churn rate, gross margin, and Rule of 40 performance (revenue growth + EBITDA margin).
Best Fintech Stocks to Buy
Screen for fintech stocks that fit your criteria for market cap, revenue, growth, and profitability. Look for companies that boast technological leadership, robust user engagement, sustainable revenue growth, a highly scalable model, and strong risk management practices. If a fintech is not yet profitable, it had better have a very strong growth rate and a clear path to profitability. Consider a fintech’s adaptability to economic cycles: BNPL lenders are more impacted by a decline in consumer spending than a payroll software provider. Be aware of the risks associated with fintechs that are heavily exposed to just one or two industry verticals. While it is often fine to pay more for growth companies, be wary of assigning a software-like multiple to a fintech that is more or less a traditional financial firm with a greater online presence.
How Fintech Stocks Differ from Traditional Financial Firms
Unlike traditional financial institutions, fintechs typically do not rely on extensive physical branch networks or legacy systems, prioritizing digital platforms, real-time data processing, and AI-driven decision-making. Fintech companies emphasize speed, user experience, and innovation but may also face distinct challenges such as regulatory complexity, reliance on third-party infrastructure, and sensitivity to funding cycles. Like traditional financial stocks, fintechs are usually valued on P/E, though there are exceptions where investors will use P/S; for example, a high-growth fintech with superior growth that has not reached a mature margin profile.
A diversified portfolio of fintechs might include a mix of lenders (e.g. SoFi, Rocket), financial software (Blackline, Paycom), and payments companies (Square, PayPal, Toast).
Discover Fintech Investment Ideas by Exploring the Lending Value Chain
The Fintech Value Chain maps how credit is created, underwritten, funded, and serviced through digital infrastructure and partnerships. Understanding this structure helps investors identify where the most scalable and profitable opportunities exist.
Six core segments within the Fintech Value Chain:
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Payments and Digital Wallets
Fintech firms are transforming the payments industry with seamless, secure, and instant digital payment solutions. Companies like Block/Square, PayPal, and Stripe simplify online transactions, facilitate peer-to-peer payments, and enable efficient merchant processing.
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Digital Lending Platforms
These companies provide consumers and small businesses with easy access to loans through mobile and online channels. Beyond a typical FICO score, lenders may also utilize non-traditional metrics and their own proprietary analytics to improve underwriting accuracy, speed approvals, and enhance risk management. Companies like Rocket, SoFi, and Affirm leverage technology to offer a range of digital lending solutions, from mortgages, to student debt refinancing, to buy-now-pay-later (BNPL) merchant services.
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Insurtech
Insurtech companies leverage data analytics, automation, and digital platforms to streamline underwriting, pricing, claims processing, and customer engagement in the insurance industry. Public players like Lemonade (LMND) and Root Insurance (ROOT) use AI and mobile-first strategies to disrupt traditional insurers and expand access to coverage.
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Financial Management Software
Software solutions like Intuit (INTU), OneStream (OS), AppFolio (APPF), and Blackline (BL) empower individuals and businesses to manage their finances efficiently, from budgeting and tax preparation to investment management and reporting. These platforms serve a critical function by streamlining complex financial processes. For investors, they offer the gross margins you expect out of a software company.
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Digital Brokerages
Digital brokerages like Robinhood (HOOD), Interactive Brokers (IBKR), and eToro (ETOR) democratize investing with low or zero commission models, intuitive interfaces, and easy access to diverse financial markets, attracting a younger generation of investors.
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Banking-as-a-Service (BaaS) and Infrastructure
Infrastructure platforms such as Galileo (acquired by SoFi), Plaid, Marqeta (MQ), and Synapse provide fintechs and traditional financial institutions with robust backend capabilities, facilitating embedded finance solutions. This infrastructure layer supports scalable and innovative financial product development.
A Framework for Investing Across the Fintech Ecosystem
Successful fintech investing involves understanding the entire fintech ecosystem, from payments infrastructure and lending platforms to financial management tools and digital brokerages. Investors should diversify across segments and focus on companies with differentiated technology, strong operational execution, strategic partnerships, and resilient business models capable of navigating market shifts and regulatory environments.
As fintech continues to reshape the financial services landscape, successful companies will balance technological innovation with effective risk management, regulatory compliance, and customer trust. Investors positioned across various fintech segments will be best positioned to capitalize on this transformative industry.
