As we emerge stronger from the Covid-19 pandemic, the technology market is looking different than ever before. Recent innovations by biotech and fintech stocks, for example, show how pandemic-era needs are shaping the market.
In 2021, fintech companies are harnessing advanced technologies to provide faster and more reliable financial service solutions for institutions and everyday users. This category includes businesses that sell payment-processing solutions or facilitate person-to-person payments through their proprietary apps.
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 join in the financial success of the fintech sector, 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?
The security and privacy of data is a significant concern for consumers in almost every industry, not just in tech. In fact, around 79% of consumers have expressed frustration with the way large corporations mishandle their private data.
Despite this rising concern, it appears people are willing to hand over their private data to companies if the convenience and benefits are enticing enough. Studies show about 60% of Americans reportedly choose to share their data with fintech companies.
It appears consumers would actually prefer to invest in digital financial solutions rather than traditional institutions like credit unions, given the economic uncertainty. This brings about a host of questions about who owns private financial data and how it should be used.
Perhaps as more and more corporations improve their security strategies, consumers feel safer putting their trust in these digital services. But with the closure of banks and credit unions during the pandemic, consumers may simply have no choice but to resort to tech savvy financial services. One thing is clear, fintech companies are stepping up to provide the flexible financial service solutions customers need during the pandemic.
Best Fintech Stocks to Buy in 2021
Some people may think of fintech startups as a flash in the pan, but many are actually stable long-term investments to keep in mind. Whether you’re a beginner or a seasoned investor, spend time researching stocks before you put your money down.
Here are some of the best tech stocks to invest in, according to analysts and advisors:
Huya (NYSE:HUYA) is a leading live-streaming gaming platform in China. While the rest of the world was reeling from economic devastation, Huya emerged much stronger, with a 21% increase in revenue by the end of 2020. The company operates in various parts of the world, including a significant portion of Southeast Asia and Latin America.
Huya’s total revenue has increased to $397.6 million in Q1 of 2021. If that’s not enough, there are speculations that Huya might be involved in a potential merger with China’s social networking app, DouYu. This would likely give the company an even greater financial boost, so if you’re thinking of investing, the time is now.
Fintech Stocks: Baidu (BIDU)
You may know Baidu (NASDAQ:BIDU) as the search engine which essentially serves as China’s version of Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google. But it’s also a multinational tech company increasingly getting involved in sectors like AI. The company is recently outperforming analyst estimates, with net profits increasing 39% to over $656 million.
In addition to making waves in the AI sector, Baidu has introduced many innovations such as cloud marketing, autonomous transport, and enterprise cloud systems. As the company keeps making a profit through its cutting-edge technologies, it may be lucrative to invest in Baidu stocks today.
AT&T (NYSE:T) is the world’s largest telecommunication company and the parent company of the multinational conglomerate WarnerMedia. It will also be merging its media arm with Discovery’s to form one of the largest global streaming services in the world in a $43 billion deal. Financial analysts estimate the company will be a competitor for large corporations like Walt Disney (NYSE:DIS) and Netflix (NASDAQ:NFLX).
With the growth of 5G networks, telecommunications giants continue to prove themselves relevant. Don’t discount oldies-but-goodies like AT&T when considering your tech stocks investment opportunities.
Auto loans have gained massive popularity in recent years, and Upstart (NASDAQ:UPST) is taking advantage. The company tackles lending with cutting-edge AI-enhanced technologies. Instead of relying on traditional credit scores, Upstart fosters more reliable lending opportunities by assessing credit ratings for potential borrowers in order to increase the speed and ease of the loan application process.
Upstart is also in the process of introducing its auto-loan platform, which will allow banks, borrowers, and dealers to lend and borrow directly through their app. With this platform, Upstart is estimated to double its revenue in 2021, so investing in their stocks at this time should be a profitable move.
Although PayPal (NASDAQ:PYPL) is known for its online P2P payment platform, the company is much more than that. Recently, it has expanded its services to eCommerce platforms, forming partnerships with multinational corporations.
PayPal boasts 392 million accounts, and the CEO believes revenue will only continue to increase in the future. As consumers do more and more of their shopping online, more people have started using PayPal to make online payments, and their stock performance will reflect this.
Consider Investing in Fintech Today
As more businesses shift online and large multinational corporations expand their franchises globally, we are heading towards an increasingly digital business world. And with the ongoing pandemic, the move towards a cashless society is looking better and better.
It’s plain to see that the fintech industry has been growing significantly in recent years, and we can expect the demand for such services to continue to rise. Whether you are a seasoned investor or just getting started, now is the time to start looking for investment opportunities in fintech stocks.
On the date of publication, Kiara Taylor did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.