In this article we discuss the top 5 Fintech stocks to buy for 2021. If you want to read our detailed analysis of the best FinTech stocks to buy this year, go directly to Top 10 Best Fintech Companies and Stocks in 2021.
5. Lemonade, Inc. (NYSE: LMND)
Lemonade, Inc. (NYSE: LMND) is a New York-based insurance firm founded by Daniel Schreiber, Shai Wininger, and Ty Sagalow in 2015. It is 5th on our list of top 10 best fintech companies and stocks in 2021. The company offers different types of insurance to customers. It uses artificial intelligence and chatbots to process claims, something that makes it unique in the traditional insurance industry. It also holds the world record processing an insurance claim in the quickest time: three seconds. The firm is operating in 28 US states and keeps 25% of the customer’s premium and uses the rest to pay off claims.
Lemonade has a market cap of over $5.4 billion and posted a revenue of close to $100 million in December 2020. Equity research firm Oppenheimer & Co. Inc. earlier in March upgraded Lemonade stock to Outperform from Perform as new products of the firm start to gain traction. The firm set the price target at $110, saying the company was expected to launch an auto product that would be worth $500 million. Lemonade stock is certainly one of the best fintech stocks on the market for investors.
4. Ripple
Ripple is a currency exchange and remittance network founded by Jed McCaleb in 2005. It is 4th on our list of top 10 best fintech companies and stocks in 2021. It was released in 2012 and is built on an open source platform that supports fiat currency, cryptocurrency, and other commodities to support free, instance and secure financial transactions around the world. It has a network that spans over 300 providers in more than forty countries spread across six continents.
Stock for the American money transfer company MoneyGram International (NASDAQ:MGI) dropped by more than 7.1% last month after it parted ways with Ripple Labs, the creator of Ripple network. However, Ripple said that the two companies would revisit their relationship in the future. In 2019, when the partnership had first been made public, the shares of the American money transfer firm had climbed to new highs.
3. Coinbase
Coinbase is a cryptocurrency exchange platform with a virtual presence only. The company was founded by Brian Armstrong and Fred Ehrsam in 2012 and is the largest cryptocurrency exchange in the US in terms of the volume of crypto going through its exchange It is 3rd on our list of top 10 best fintech companies and stocks in 2021. The company announced a Visa debit card program in October 2020, and also purchased digital asset trading firm Tagomi for an undisclosed amount. Earlier this year, Coinbase Global, the parent firm of Coinbase, filed for an initial public offering in the US.
Coinbase has more than 43 million verified users with at least 2.8 million of them using the platform monthly. The firm posted a profit of $322 million in 2020. The fortunes of the exchange remain tied to the ups and downs of cryptocurrency Bitcoin. In 2019, when Bitcoin prices were falling, the company registered $30 million in losses. In 2020, as Bitcoin rallied, the company posted a revenue of more than $1.3 billion.
2. SoFi
SoFi is a San Francisco based online finance company that was founded by Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady in 2011. It is 2nd on our list of top 10 best fintech companies and stocks in 2021. The company offers a range of financial products including student loan refinancing, mortgages, personal loans, credit card, investing and banking. It has a mobile app and a desktop interface. At the start of the year, SoFi announced plans for going public by merging with a blank-check company run by venture capital investor Chamath Palihapitiya.
The merger with the company, Social Capital Hedosophia Corp. V (NYSE: IPOE), has put the value SoFi at $8.65 billion. When last valued, SoFi had been worth $5.7 billion. As a startup, the firm had raised money from venture capital firms like SoftBank and Peter Thiel. Shares of the parent company were up following the announcement.
1. Monzo
Monzo is a London-based online only bank that was founded in 2015 by Tom Blomfield. It was one of the earliest digital-only banks on the European continent. Monzo tops our list of top 10 best fintech companies and stocks in 2021. It operated for at least two years on a mobile account and a prepaid debit card, but the UK government eventually allowed it to offer customers current accounts as well. More than 4 million people in the UK have used the services of the bank since it began offering banking services.
According to Business Insider, the new current account offerings have improved the future outlook of Monzo as more than 130,000 people signed up to obtain the service since late last year. These account holders only represent 2.7% of the total customers of the bank, suggesting a path forward for growth. The company has so far raised $356 million in funding and has about 250-500 employees currently working for it.
You can also take a peek at Top 10 Car Company Stocks to Invest In and Ray Dalio’s Top 10 Stock Picks for 2021.
