The Top 10 Fintech Stocks To Watch In 2019 (Based On Math)

Fintech is the new technology that aims to compete with traditional financial methods in the delivery of financial services. It’s a relatively new industry that began seeing huge sums of VC funding pour into it about a decade ago.

The total transaction value in FinTech is continuously rising, going from $2,066,139.80 in 2015 to $3,300,958 in 2017. FinTech market transaction value is set to grow to $7 trillion in 2021. Digital payments, the largest segment, will be worth $2.7 trillion according to Statista. 

Fintech Categories

  • Cryptocurrency and digital cash
  • Blockchain technology, including Ethereum, a distributed ledger technology (DLT) that maintain records on a network of computers, but has no central ledger.
  • Smart contracts, which utilize computer programs (often utilizing the blockchain) to automatically execute contracts between buyers and sellers.
  • Open banking, a concept that leans on the blockchain and posits that third-parties should have access to bank data to build applications that create a connected network of financial institutions and third-party providers. An example is the all-in-one money management tool Mint.
  • Insurtech, which seeks to use technology to simplify and streamline the insurance industry.
  • Regtech, which seeks to help financial service firms meet industry compliance rules, especially those covering Anti-Money Laundering and Know Your Customer protocols which fight fraud.
  • Robo-advisors, such as Betterment, utilize algorithms to automate investment advice to lower its cost and increase accessibility.
  • Unbanked/underbanked, services that seek to serve disadvantaged or low-income individuals who are ignored or underserved by traditional banks or mainstream financial services companies.
  • Cybersecurity, given the proliferation of cybercrime and the decentralized storage of data, cybersecurity and fintech are intertwined.

The Big Banks Are Asleep

The most talked-about (and most funded) fintech startups share the same characteristic: they are designed to be a threat to, challenge, and eventually usurp entrenched traditional financial services providers by being more nimble, serving an underserved segment or providing faster and/or better service.

Traditional banks have been paying attention and have invested heavily into becoming more like the companies that seek to disrupt them.

Many tech-savvy industry watchers warn that keeping apace of fintech-inspired innovations requires more than just ramped up tech spend. Rather, competing with lighter-on-their-feet startups requires a significant change in thinking, processes, decision-making, and even overall corporate structure.

 

Top 10 Fintech Stocks To Watch In 2019

We are basing this list on % of 52 week high, this is a great indicator to use when assessing which stocks have a good chance of moving, and in this case the lower the better. 

According to Investopedia The “percentage off the 52-week high or low” refers to when a security’s current price is relative to where it has traded over the last 52 weeks. This gives investors an idea of how much the security has moved in the last year and whether it is trading near the top, middle or bottom of the range.

 

1. Mogo (MOGO.T) 42%

2. Versa Pay Corp (VPY.C) 51%

3. Elli Mae (ELLI.N) 58%

4. LendingClub (LC.Q) 62%

 

5. Lendingtree (TREE.Q) 65%

 

6. Constellation Software (CSU.T) 81%

 

7. Square (SQ.N) 82%

 

8. The Western Union (WU.N) 83%

 

9. Shopify (SHOP.T) 84%

 

10. Open Text (OTEX.T) 84%

 

To read more about how banks and their apps are failing check out this recent article:

 

Disclaimer: Mogo is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

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