3 Fintech Stocks to Buy Amidst the Bank Blowout 3 Fintech Stocks to Buy Amidst the Bank Blowout

Once again, the traditional banking industry is experiencing yet another crisis. The innovation that financial technology, or fintech shares, provides is therefore going to be even more crucial for the future. For those who are positive about the revolution in the financial sector, these companies give a lot to be excited about.

Many of these fintech stocks are among the most accessible, efficient and cost-effective in the financial industry. As a result, fintech stocks have become increasingly popular among investors looking to capitalize on disruption.

The companies below are leaders in disruption, focusing on research and development, product innovation and rapid growth. In this article, I will explore some of the best fintech stocks riding the wave of disruption with excellent growth prospects.

Visa (V)

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Let’s start this list with one of the leading fintech stocks globally, shall we?

Visa (SNEEZE:V) orientation towards innovation and research is one of the critical drivers of economic performance and valuation growth. With its research arm, the company addresses complex challenges in the payments and fintech industry by using cutting-edge technologies, such as artificial intelligence, cryptography and blockchain, to support value.

For example, Visa Research aims to achieve policy-enforced, full-lifecycle cryptographic protection for data across all computing environments. In addition, Visa’s blockchain and digital currency work focuses on making digital currencies interoperable while improving stand-alone processing.

In addition, Visa is expanding its reach in the creative economy by launching the Visa Ready Creator Commerce program. This program connects platforms with financial tools, such as instant payouts and tipping, and addresses creators who are one of the fastest growing categories of small businesses. To further support this community, the company collaborates with companies such as Linktree and Market (NASDAQ:MQ).

In particular, Visa’s financial results and critical business drivers for the first quarter of the financial year 2023 show the company’s potential to provide continued growth in the coming quarters. In addition, the company’s significant payment volume and cross-border volume, driven by increasing demand for digital payments, are expected to remain stable.

Additionally, the company’s focus on expanding its computing capabilities is likely to boost revenue. While operating costs are rising, Visa’s efforts to streamline operations and invest in growth opportunities are expected to support sustainable profitability.

Overall, Visa’s commitment to research and development drives the upside potential. With its focus on pioneering technologies and partnerships, the V share is well positioned for future growth in the fintech area.

PayPal Holdings (PYPL)

PayPal (NASDAQ:PYPL) is a dynamic fintech company that continues to enjoy maintaining its position as a leader. The company is improving its product portfolio by launching new products and services to strengthen its brand experience and make paying with Venmo even easier.

Passkeys have been enabled on iOS and Android devices, further simplifying check-out. PayPal has also introduced PayPal Savings and Rewards to enhance its digital wallet. In addition, it has revamped the PayPal Cashback Mastercard and launched Venmo Charity Profiles to add even more features.

PayPal has expanded the growth opportunities for merchants by launching Tap to Pay for SMEs in the Netherlands, Sweden and the UK. In addition, PayPal Working Capital has been introduced to France and the Netherlands, covering the funding requirements of small businesses.

PayPal has faced some backlash, with regulators increasing scrutiny of cryptocurrencies. A key partner in its stablecoin project is now facing an investigation by the New York State Department of Financial Services.

However, despite a 10% year-over-year decline in non-GAAP earnings per share, PayPal has quickly allocated capital to buyback shares in 2022, positively impacting its 3-year CAGR. Going forward, PayPal raised its guidance for non-GAAP earnings per share growth to 18%, focusing on cost savings and returning capital to shareholders.

In summary, through its continued innovation and rapid product adoption, PayPal is capitalizing on growth opportunities in the fintech sector.

SoFi Technologies (SOFI)

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SoFi (NASDAQ:SOPHIE) is certainly one of the most important fintech stocks I have on my radar. The company’s innovation is remarkable, with various initiatives and acquisitions in the past year turning heads.

One of the most important innovations I’ve noticed is the company’s move toward checking and savings accounts. SoFi’s diverse product portfolio now includes SoFi Checking & Savings, which offers an industry-leading APY of up to 3.75%. The company also has a national banking license, which allows it to expand into conventional spaces with its value propositions, such as offering the best interest rates on loans. This should help the company to maximize the return for its business, while also allowing for reinvestment in product and service improvements.

In particular, one of SOFI’s most important strengths is its rapid growth. In 2022, the company added 480,000 new members in the fourth quarter, for a total of 5.2 million, a 51% year-over-year growth. There are some impressive growth investors should consider.

Interestingly, to provide additional security for members’ funds, SoFi has increased its FDIC insurance coverage to $2 million per account, higher than the industry standard of $250,000. This move will drive significant value attraction towards bank products over the long term, as the company becomes a haven for savers looking to stash cash for a rainy day.

Although the growth rate of PayPal’s key growth drivers is slowing, the company is optimistic about the future. PayPal recently issued non-GAAP guidance for fiscal 2023. It expects to deliver $1.925-2.0 billion in revenue and $260-280 million in EBITDA at a 30% incremental margin.

Overall, SoFi’s innovative and customer-centric product portfolio, impressive growth trajectory and innovative initiatives make it a strong contender in the fintech market.

At the time of writing, Yiannis Zourmpanos was a long time SOFI. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Guidelines for publication.