As more advanced technologies and innovative solutions find application in the financial sector, the fintech market could keep growing quickly in the coming months thanks to increasing digital transactions. So, we think it could be wise to invest in quality fintech stocks Futu Holdings (NASDAQ:FUTU), SoFi Technologies (SOFI), and Paysafe (PSFE) to capitalize on the industry’s growth. That’s because Wall Street analysts expect these stocks to rally by more than 40% in the near term.While most industries suffered significant losses last year amid the COVID-19 pandemic, the fintech space gained significantly with a surge in digital financial transactions. Investors’ interest in the fintech space is evident in Global X FinTech ETF’s (FINX) 30.1% gains over the past year.
And thanks to the spread of the hyper-contagious COVID-19 Delta variant, the resurgence of COVID-19 cases in several countries could spur an increase in demand for fintech solutions for the foreseeable future. In addition, the increasing adoption of artificial intelligence (AI)-based technology, online wallet, and even cryptocurrency transactions have been driving a shift toward a cashless society. According to The ExpressWire report, the fintech market is expected to grow at an 8.6% CAGR between 2021 - 2024.
Given this backdrop, we think it could be wise to bet on fundamentally strong fintech stocks Futu Holdings Limited (FUTU), SoFi Technologies, Inc. (SOFI), and Paysafe Limited (PSFE). Wall Street analysts believe these stocks have plenty of upside to deliver.