An updated edition of the April 15, 2025 article.
Fintech, or financial technology, is revolutionizing how individuals and businesses manage money by offering faster, more affordable and user-friendly financial services. From digital payments and mobile banking to artificial intelligence (AI)-driven insurance platforms, robo-advisors and blockchain solutions, fintech is redefining traditional finance through innovation and accessibility.
This digital transformation is particularly resonating with Millennials and Gen Z, who are driving widespread adoption thanks to fintech’s mobile-first, on-demand convenience. Routine financial activities like transferring money, making payments, investing and getting financial advice can now be done effortlessly via smartphones or laptops. As a result, the global fintech market is expanding rapidly. The market, valued at $340.10 billion in 2024, is projected to surpass $1.12 trillion by 2032 at a CAGR of 16.2% (Fortune Business Insights report), highlighting its potential for long-term growth and profitability.
What truly sets fintech apart is its fusion of finance with cutting-edge technologies such as AI, machine learning and blockchain. These tools are reshaping how banks, lenders and investment platforms operate by enhancing security, personalizing user experiences and driving down costs.
As consumer preferences continue to shift toward digital solutions, both startups and established financial institutions are investing heavily in fintech to stay competitive. For investors, this presents a compelling opportunity to tap into a dynamic, high-growth sector poised to redefine the global financial ecosystem. Hence, stocks like Robinhood Markets Inc. HOOD, Nu Holdings Ltd. NU and SoFi Technologies, Inc. SOFI are gaining traction.
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Robinhood, founded in 2013 by Vlad Tenev and Baiju Bhatt, democratized finance by providing commission-free stock trading. Launched in 2015, its app quickly gained popularity among younger investors, disrupting traditional brokerage firms. The platform became a major force in retail investing, particularly during the pandemic, when a surge in retail trading fueled its rapid growth.
Robinhood has evolved from a brokerage firm mainly trading in digital assets to a more mature and diversified entity, striving to widen its market and reach. The company operates in multiple financial sectors, offering stock and ETF trading, options trading, cryptocurrency transactions, retirement accounts and cash management services. The company has also expanded into prediction markets and launched the Robinhood Wallet for self-custodial crypto storage. These diverse offerings make it a key player in the fintech industry, attracting millions of users with its user-friendly and innovative approach. The company intends to become a one-stop shop for building generational wealth.
Robinhood plans to expand internationally, particularly in Europe and Asia, while introducing services for institutional investors. The company, carrying a Zacks Rank #3 (Hold), is developing AI-powered investment tools and exploring Decentralized Finance (DeFi) integration to enhance its offerings. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With these initiatives, the company will continue to reshape the financial industry by making investing more accessible and technologically advanced. The Zacks Consensus Estimate for HOOD’s 2025 sales and EPS implies year-over-year growth of 22.3% and 12.8%, respectively.
Nu Holdings is reshaping traditional finance in Latin America by targeting underserved and digitally native consumers with a broad suite of app-based services across lending, banking and investing. As of March 31, 2025, the company had amassed a staggering 118.6 million customers, a clear signal that its influence on the region’s financial future is deepening rapidly.
Leveraging a digital-first, highly scalable model, Nu Holdings has reduced operational costs while boosting efficiency and accessibility. This strategy not only disrupts legacy banking structures but also promotes financial inclusion in markets long underserved by traditional players. Its flagship platform, NuBank, has become one of the most trusted and recognized financial brands in Latin America. Ongoing digital adoption across the region is expected to further accelerate its growth trajectory.
NU’s diversified revenue streams — lending, interchange fees and marketplace services — offer both resilience and scalability. Credit cards and personal loans remain strong contributors, supporting the platform’s monetization and customer engagement efforts.
In a space where many fintechs prioritize rapid growth over profitability, Nu Holdings stands out for balancing scale with financial discipline. With continued innovation, disciplined execution and a growing footprint across emerging economies, this Zacks Rank #3 firm is not just expanding its reach, it’s establishing itself as a long-term leader in the global digital finance revolution.
The Zacks Consensus Estimate for NU’s 2025 sales and EPS implies year-over-year growth of 28.5% and 20%, respectively.
SoFi is redefining traditional finance through its app-based digital banking platform, offering a wide array of services, including lending, banking, investing and insurance. In 2024, the company surpassed 10 million members, a testament to its growing consumer appeal and the strength of its all-in-one financial ecosystem.
A major catalyst for SoFi’s growth is Galileo, its B2B financial services platform, which powers seamless payment and lending integrations for other fintechs and financial institutions. Galileo not only diversifies SoFi’s revenue streams but also cements its position in the rapidly expanding embedded finance market. Its adoption by a growing roster of high-profile clients enhances the company’s credibility and market reach.
SoFi’s land-and-expand strategy remains a core strength. By offering a broad spectrum of financial products, the company attracts new users and creates a strong cross-selling dynamic. This integrated model encourages deeper customer engagement while incentivizing partners to embed more of their offerings within SoFi’s ecosystem, ultimately driving higher lifetime value per customer.
With a strong first-mover advantage in U.S. fintech and an aggressive growth mindset, this Zacks Rank#3 company is well-positioned for continued earnings expansion. Its increasing cross-sell capabilities and platform scalability point to a compelling long-term outlook in a fast-evolving digital finance landscape. The Zacks Consensus Estimate for SOFI’s 2025 sales and EPS implies year-over-year growth of 26.2% and 80%, respectively.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Nu Holdings Ltd. (NU) : Free Stock Analysis Report
SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report
Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
