If you only buy one of the Fintech shares, make it one of these 5
As we emerge stronger from the Covid-19 pandemic, the tech market is more different than ever. Recent innovations in biotech and fintech stocks, for example, show how the needs of the pandemic era are shaping the market.
In 2021, fintechs will harness cutting-edge technologies to deliver faster and more reliable financial services solutions to institutions and everyday users. This category includes businesses that sell payment processing solutions or facilitate person-to-person payments through their proprietary applications.
Some popular Fintech services include:
- Mobile banking
- Online payment applications
- P2P (peer-to-peer) money lending
- Financial analysis software
- Payment processing software
If you want to participate in the financial success of the fintech industry, now is the time. Let’s explore some of the stocks that are making big waves in the industry and find out if these opportunities are right for you.
Should You Trust Fintech Stocks With Private Data?
Data security and privacy is a big concern for consumers in almost every industry, not just technology. In fact, around 79% of consumers have expressed frustration with the way large companies treat their private data badly.
Despite this growing concern, it seems people are ready to hand their private data to businesses if the convenience and benefits are attractive enough. Studies show that about 60% of Americans would choose to share their data with fintech companies.
It seems consumers would actually prefer to invest in digital financial solutions rather than traditional institutions like credit unions, given the economic uncertainty. This raises a host of questions about who owns private financial data and how it should be used.
Perhaps as more companies improve their security strategies, consumers feel more secure trusting these digital services. But with banks and credit unions shutting down during the pandemic, consumers may simply have no choice but to resort to state-of-the-art financial services. One thing is clear, fintech companies are stepping up to provide the flexible financial services solutions customers need during the pandemic.
Best FinTech stocks to buy in 2021
Some people may see fintech startups as a flash in the pan, but many are actually stable, long-term investments to keep in mind. Whether you are a newbie or a seasoned investor, spend time researching stocks before you deposit your money.
Here are some of the best tech stocks to invest in, according to analysts and advisers:
Huya (NYSE:HUYA) is one of the leading live gaming platforms in China. While the rest of the world reeled from the economic devastation, Huya came out much stronger, with a 21% increase in revenue at the end of 2020. The company operates in various parts of the world, including including a significant portion of Southeast Asia and Latin America. .
Huya’s total revenue rose to $ 397.6 million in the first quarter of 2021. If that’s not enough, there is speculation that Huya could be involved in a potential merger with the networking app. Chinese social, DouYu. It would likely give the business an even bigger financial boost, so if you’re considering investing, now is the time.
Fintech Equities: Baidu (BIDU)
You may know Baidu (NASDAQ:BIDU) as a search engine that basically serves as the Chinese version of the alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) Google. But it is also a multinational technology company that is increasingly involved in sectors such as AI. The company recently outperformed analysts’ estimates, with net profits rising 39% to over $ 656 million.
In addition to making waves in the AI ââindustry, Baidu has introduced many innovations such as cloud marketing, autonomous transportation, and enterprise cloud systems. As the company continues to make profits from its advanced technologies, it can be lucrative to invest in Baidu shares today.
AT&T (NYSE:T) is the world’s largest telecommunications company and the parent company of multinational conglomerate WarnerMedia. It will also merge its media arm with Discovery to form one of the world’s largest global streaming services in a $ 43 billion deal. Financial analysts believe the company will be a competitor for large companies like Walt disney (NYSE:Dis) and Netflix (NASDAQ:NFLX).
With the growth of 5G networks, the telecom giants continue to prove themselves. Don’t overlook the old ones but goodies like AT&T when considering your investment opportunities in tech stocks.
Auto loans have grown in popularity in recent years, and Reached (NASDAQ:UPST) take advantage. The company is tackling loans with cutting-edge AI-enhanced technologies. Instead of relying on traditional credit scores, Upstart promotes more reliable loan opportunities by assessing the credit scores of potential borrowers to increase the speed and ease of the loan application process.
Upstart is also in the process of introducing its automatic lending platform, which will allow banks, borrowers and dealers to lend and borrow directly through their app. With this platform, Upstart is expected to double its revenue in 2021, so investing in their stocks right now should be a profitable decision.
Even if Pay Pal (NASDAQ:PYPL) is known for its online P2P payment platform, the company is much more than that. Recently, it has extended its services to e-commerce platforms, forming partnerships with multinational companies.
PayPal has 392 million accounts and the CEO believes revenues will only increase in the future. As more and more consumers shop online, more and more people have started to use PayPal to make payments online, and their stock performance will be the result.
Consider investing in Fintech today
As more businesses move online and large multinational corporations expand their franchises globally, we are moving towards an increasingly digital business world. And with the ongoing pandemic, the move towards a cashless society is shaping up to be better and better.
It is evident that the FinTech industry has experienced significant growth in recent years, and we can expect the demand for such services to continue to increase. Whether you are a seasoned investor or just starting out, now is the time to start looking for fintech equity investment opportunities.
At the time of publication, Kiara Taylor had (directly or indirectly) no position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.