Fintech Stocks In Focus As Ai And Digital Payments Reshape Finance

An updated edition of the May 20, 2026 article.

Financial technology, or fintech, is rapidly transforming the global financial services industry by making financial solutions faster, more accessible and more customer-centric. By integrating finance with advanced technologies such as artificial intelligence, blockchain, Big Data and cloud computing, fintech is challenging traditional operating models across banking, payments, lending, wealth management and investing.

One of fintech’s most important impacts is its ability to broaden financial inclusion. Digital wallets, mobile banking apps and peer-to-peer lending platforms have made it easier for unbanked and underbanked populations to access basic financial services. Fintech is also reshaping cross-border payments by reducing the time, cost and complexity traditionally associated with international money transfers.

The sector is also redefining how consumers and businesses make payments, borrow money and manage investments. Contactless payments, buy now, pay later options and app-based lending platforms are improving convenience and speed while enabling businesses to offer more flexible and personalized financial experiences. In capital markets, robo-advisors and algorithm-based trading platforms are lowering investment costs and making wealth-building tools available to a wider audience.

Beyond convenience, fintech is strengthening transparency, cybersecurity and risk management across the financial ecosystem. Blockchain enables secure and traceable transactions, while AI-powered systems improve fraud detection, credit evaluation and regulatory compliance. As fintech continues to mature, it is encouraging traditional financial institutions to modernize their systems, partner with technology providers and adapt to changing customer expectations. This shift is creating a more agile, inclusive and innovation-led global financial ecosystem. Hence, stocks like Robinhood Markets, Inc. HOOD, SoFi Technologies, Inc. SOFI and Upstart Holdings, Inc. UPST are grabbing investor attention. 

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3 Stocks to Bet on for the Fintech Opportunity

Robinhood is using technology as the core lever to move beyond a commission-free trading app and build a broader financial services ecosystem. Its mobile-first platform continues to lower friction for retail investors by combining equities, options, crypto, retirement and cash-management features in one interface. This helps deepen customer engagement while creating more cross-selling opportunities across asset classes and subscription products.

A major part of Robinhood’s expansion strategy is automation and AI. The company has launched AI-driven tools such as Robinhood Cortex, personalized portfolio digests and agent-based trading capabilities, aimed at helping users interpret market moves, manage portfolios and execute trades more efficiently. These tools can increase platform stickiness, especially among younger investors who prefer digital guidance over traditional advisory channels.

HOOD is also using blockchain technology to widen its addressable market. Robinhood Chain and tokenized stock initiatives are designed to support 24/7 trading, international access and decentralized finance products, helping the company expand beyond the U.S. brokerage market into global crypto and tokenized-asset services.

The company is leveraging technology to enter new categories such as prediction markets, private market access, digital advisory, credit cards and international brokerage services. Together, these initiatives support Robinhood’s ambition to become a financial “super app,” with technology enabling scale, lower costs, faster product launches and broader global reach.

Though the Zacks Consensus Estimate for HOOD’s 2026 earnings implies a year-over-year decline of 11.7%, the trend is expected to reverse next year, with earnings projected to jump 37.2%. The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SoFi is using technology to expand from a digital lender into a broader financial services platform. Its strategy centers on a mobile-first “financial everything app” that brings borrowing, saving, spending, investing, insurance and financial planning into one ecosystem. This allows it to attract members through one product and then cross-sell additional services, increasing engagement and lifetime customer value.

A key growth driver is SoFi’s technology platform, which includes Galileo and Technisys. Galileo supports payment processing, card issuing and digital banking capabilities, while Technisys provides cloud-native core banking infrastructure. Together, these platforms allow SoFi to serve other fintechs, banks and enterprises, creating a business-to-business revenue stream beyond its consumer-facing app. The company describes itself as a member-centric “everything app” and reported strong product growth, showing how technology is supporting broader adoption across its ecosystem.

SoFi is also using AI to strengthen customer engagement. Recent initiatives such as SoFi Coach and Composer by SoFi are designed to provide AI-powered financial guidance and investing support, helping users manage money, build strategies and make decisions with less friction.

In lending, SoFi is expanding through its Loan Platform Business, using technology and partnerships to distribute personal loans more efficiently. The company announced new agreements totaling more than $3.6 billion in expected personal loan funding, supporting a more capital-light growth model. Overall, technology is enabling SoFi to scale faster, diversify revenues and compete as a full-service digital financial platform.

The Zacks Consensus Estimate for SoFi’s 2026 and 2027 earnings indicates year-over-year growth of 51.3% and 34.1%, respectively. The stock carries a Zacks Rank #3.  

Upstart is using technology to expand its business by positioning itself as a tech-driven lending marketplace rather than a traditional consumer lender. Its core platform uses AI and machine-learning models to assess borrower risk beyond conventional credit scores, helping banks and credit unions approve more borrowers while managing default risk. This gives Upstart a scalable role as a loan-origination and underwriting partner for financial institutions, rather than requiring it to hold all loans on its balance sheet.

Technology is also helping Upstart automate the lending process. By reducing manual underwriting and enabling faster approvals, the company can improve borrower experience and lower processing costs for lending partners. This is particularly important as it works to attract more banks, credit unions and institutional investors to its marketplace. The company describes itself as a leading AI lending marketplace and continues to publish origination data, showing its emphasis on technology-led loan volume growth.

UPST is also expanding beyond personal loans into auto lending, home lending and home-equity products. This product diversification allows the company to apply its AI models to larger credit markets and reduce dependence on one loan category. Overall, Upstart’s technology strategy supports business expansion by improving credit decisioning, automating loan origination, broadening product reach and strengthening its partner-based marketplace model.

The Zacks Consensus Estimate for UPST’s 2026 and 2027 earnings implies year-over-year increases of 30.5% and 44.9%, respectively. The company currently carries a Zacks Rank #3.

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This article originally published on Zacks Investment Research (zacks.com).

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