Financial technology, or fintech, is a branch of banking that utilizes technological innovation to provide all sorts of financial products and services to users from all over the world from the comfort of their mobile devices. With fintech, global citizens can save their money, borrow, lend and even invest without having to step foot in a bank or other financial institution. This technological innovation has led to the emergence of a new class of high-potential stocks called fintech stocks.

Fintech stocks are some of the most promising spaces to invest in, with analysts projecting that it will maintain an annual growth of 16.5% through 2032. 

Furthermore, the introduction of newer technologies in the industry, such as payment processing, P2P lending and blockchain technology, will further contribute to its growth and development, making it a promising landscape to invest in. This article explores three of the top fintech stocks to buy this year. 

Fidelity National Information Services (FIS)

Fidelity National Information Services (NYSE:FIS) is an American corporation renowned for its development of financial technology. It owns a portfolio of products that cater to the financial services sector, particularly payment processing, wealth management, consulting, retail and institutional banking. Profile, a banking application, is among these products. 

Over the last few years, Fidelity National Information Services has been expanding its portfolio. In 2019, it purchased Worldpay, a global electronic funds transfer system. A year later, the company purchased Virtus Partners, an asset management business. 

Since then, the company has purchased other holdings, such as Bond Financial Technologies and Torstone Technology, showing a commitment to growth and a willingness to integrate emerging technologies, such as blockchain and AI. 

All these factors have contributed to its recent strong profitability levels. Its latest quarterly report indicates that it is having a great year financially, evidenced by the performance of the FIS stock. According to the report, FIS returned an impressive 23.4% of shareholder value and generated net earnings of $768 million. 

Robinhood Markets (HOOD)

Robinhood Markets (NYSE:HOOD) is an American financial services provider based in Menlo Park, California. The company is renowned for its popular electronic trading mobile platform, which facilitates the trading of various financial instruments, from stocks and exchange-traded funds (ETFs) to cryptocurrency. 

This year, Robinhood Markets has outperformed most of the competition in the financial industry thanks to a series of smart innovations within its products. A great example of this is the introduction of commission-free stock trades within the Robinhood mobile trading app. 

Another great innovation from the company is the launch of Robinhood Gold, a product many predict will likely change the financial landscape. Robinhood Gold comes with loads of benefits, such as 5% interest on uninvested brokerage cash, a 1% deposit boost on new deposits, a credit card with 3% unlimited cashback on all purchases, and much more. These perks cost just $50/year, which is significantly less than other credit cards in the market. 

Furthermore, Robinhood Markets has performed impressively on the financial front this year. According to its latest quarterly report, the company saw massive increases across various key metrics, such as total net revenue and net income. Its total net revenue increased by 40% to $618 million, while its net income increased to $157 million. 

Nu Holdings (NU)

Nu Holdings (NYSE:NU) is a Brazilian digital bank based in Sao Paulo. It is widely regarded as the largest fintech in Latin America, boasting over 80 million customers in the region. Nu Holdings offers various financial solutions to its users, such as bank accounts, brokerage accounts, personal loans, credit cards and more. 

Its dominance over the Latin American market is massive, and the numbers back this up. According to its latest quarterly report, the company generated a net income of $378.8 million, more than doubling last year’s amount of $141.8 million. 

It also saw massive increases across key metrics like total revenue and customer base growth. Its total revenue increased by 67% to $2.7 billion, while its customer base grew to reach 99.3 million at the end of the quarter. 

On the date of publication, Joel Lim 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.

On the date of publication, the responsible editor did not have (either directly or
indirectly) any positions in the securities mentioned in this article.