How to Invest in Fintech in 2026

Investing in fintech can mean buying into a wide array of services, from depository banking to brokerages. However, as a category, it means that you have invested in a company that uses technology to help people manage their money. This is a big and growing field, with opportunities that range from legacy institutions like Visa to brand-new apps and services. For many people, fintech can be a good way to combine the value opportunities of a technology stock with the stability often offered by financial institutions.

Consider working with a financial advisor if you’re looking for guidance on investing for the future.

What Is Fintech?

Fintech, shorthand for financial technology, refers broadly to any service or firm that uses technology to help people manage their money.

There is no hard-and-fast definition for this sector, so the fintech company can vary widely. Some investors define fintech strictly, only considering a company financial technology if it has invented a new way to handle money or financial assets directly. Others apply the term more broadly, spanning everything from app-based brokerages to financial blogs. Even the venerable ATM is properly considered a piece of fintech. However, these days, when someone refers to a fintech company, they’re generally referring to new and developing technologies, such as generative artificial intelligence.

Fintech is part of virtually every consumer’s daily life in several waysa.

New products and companies are constantly emerging in this field, giving investors access to value stocks and startups regularly and making fintech an essential component of finance in the 21st century.

This is even more true outside of the United States. As developing nations upgrade their economies, many have leaped past legacy tech like ATMs and credit card machines and directly to wireless, cashless finance. From Kenya to China, next-generation fintech defines daily transactions, making fintech a strong market for domestic investment as well as global growth.

Why Consider Investing in Fintech?

When investors talk about fintech as an investment field, they’re usually referring to new companies and emerging technologies. While it’s accurate to refer to investing in Visa or E*Trade as a fintech investment, a call to invest in fintech usually means that someone has invented a new idea or product.

Fintech products can come in just about any form, which is one of the reasons this field is attractive to investors.

Physical products. Some firms ship physical products, like Block’s payment processing systems.
Software and apps. Others include software and apps, such as Venmo’s payment processing services.
Service providers. Many fintech companies are service providers, like Robinhood’s investment platform. Of course, in most cases, the company provides a combination of products, such as a service and the software interface for using that service.

The biggest reason to consider investing in fintech is the sector’s size. Even setting aside the established players like Visa (approximately $607 billion market cap in mid-January 2026) and MasterCard (approximately $485 billion market cap), these are wealthy and successful companies. Other leading companies include PayPal (valued at approximately $54 billion, Fiserv at $36 billion and Block at $40 billion.

In fact, Crunchbase data shows that 2025 brought a 27% increase in global venture funding for fintech and financial services startups, totaling approximately $52 billion.

When a fintech company does well, it can combine the fast growth of a tech startup with the reliability of a banking-industry investment. Of course, it’s important to note that fintech companies also carry the risks of a tech startup. These companies can fail as quickly as they can succeed, making new entrants a great but highly speculative investment.

Ways to Invest in Fintech

A couple discuss fintech investments with their advisor.

As digital transformation continues to reshape the financial landscape, investing in fintech can be a strategic move for forward-thinking investors. From startups to established companies, the fintech industry encompasses a wide range of businesses that are revolutionizing everything from payments to personal finance management.

For investors welcoming exposure to this field, there are several options.

1. Stocks

As the lowest-hanging fruit, you can always invest directly in financial technology through the stock of related companies.

Investing in stocks directly is always speculative. You can capture all the gains of a successful company, but nothing will even out losses if the company does poorly. While that is not necessarily a deterrent, these risks are certainly worth considering as part of your overall risk management strategy.

The key question with fintech stocks is how much you want to balance growth with security. Investors seeking strong gains can look to emerging and startup companies, especially those with new technologies.

Investors who prefer a more stable investment can look to legacy companies like top banks and credit card companies. These firms all use fintech as part of their daily operations, from tap-to-pay to Zelle, so an investment in your bank bundles a fintech investment with the hedge of a much larger institution.

2. Mutual Funds or ETFs

As with most industries, the counterpart to individual stocks would be mutual funds or exchange-traded funds (ETFs). Several ETFs and mutual funds on the market specifically focus on fintech, building their portfolios around both new and established companies operating in the financial technology space.

The advantage here is twofold.

Fund’s expertise. Instead of having to research good investments in a technically complex field, you can rely on the fund’s managers to know which companies look good.
Strong risk mitigation. While the fund is exposed to the sector as a whole, any given company can’t sink your investment if it goes bad.

Of course, both of those advantages are double-edged swords. While you get the fund’s expertise, you are also stuck with it. You can choose your fund, but you can’t select the individual assets that make up its portfolio.

The risk mitigation of a mutual fund or ETF also means that you can’t capture all the gains of a high-performing asset. You won’t take heavy losses from a bad investment, but you also won’t get the outsized returns of a good one.

3. Technology or SaaS Companies

The heart of fintech is its technology, which creates a good passive investment opportunity.

The next generation of financial technology will be driven by many of the same advancements making headlines in other areas. Banks are looking to use artificial intelligence to create in-app financial advisors. Big data will be used to further streamline credit and lending, while wireless and near-field technologies will continue to make virtual wallets more popular.

As new technologies emerge, many different companies will look to build them into financial products. The upshot is that you can invest in the success of these products by investing in the technology behind them.

Whether through stocks or funds, you can buy into the companies that make the technology for fintech products. This gives you the chance to invest in the success of fintech itself.

How to Start Investing in FinTech

Before diving into fintech investments, it is essential to conduct thorough research.

Evaluate the market trends and growth potential of various fintech companies.
Look into their business models, revenue streams and competitive advantages.
Assess the regulatory environment, as fintech companies often operate in highly regulated spaces.

Diversification is a key strategy when investing in fintech. Given the rapid pace of technological change, some fintech companies may thrive while others struggle. By spreading your investments across different fintech sectors and companies, you can mitigate risks and increase your chances of achieving favorable returns.

Consider diversifying your investments with a mix of established companies with proven track records and promising startups that offer innovative solutions. This balanced approach can help you capitalize on the growth potential of the fintech industry while managing potential downsides.

Understanding these factors will help you make informed decisions and identify companies with sustainable growth prospects. Additionally, consider consulting with a fintech-focused financial advisor to gain deeper insights and guidance tailored to your investment goals.

What Investors Should Know Before Investing

Fintech companies can grow quickly, but fast growth does not always lead to strong long-term results.

Because these businesses operate inside the financial system, rules, fees and business structure matter as much as technology. For new investors, overlooking these factors can lead to misunderstandings about risk and return.

When you invest in fintech, you are investing in companies that handle payments, lending, investing or personal financial data. These activities are regulated. That means if laws or oversight change, a fintech company may face higher costs, product limits or slower expansion. These issues often appear later, after a company has already attracted users.

Different types of fintech companies face different challenges. A payments app, a digital lender and an online brokerage are regulated in different ways. Some fintech firms also rely on traditional banks to operate. If those relationships change, the fintech company may need to adjust its operations or scale back services.

It also matters how a fintech company makes money. Many rely on transaction fees or borrowing activity rather than steady subscription income. That means revenue can rise and fall with consumer spending, interest rates and competition.

For beginners, understanding these basics helps separate short-term excitement from long-term investment potential.

Bottom Line

Fintech is the financial technology sector. With companies like E*Trade, Venmo and more, this is increasingly a part of everyone’s day-to-day life, making it a great investment for some investors. There are several ways to invest in this broad and rapidly evolving industry. The easiest is to invest in technology itself or get stock options with a fintech company. The more common ways, however, involve choosing fintech-related investments, such as stocks or funds.

Tips for Investing

A financial advisor is a professional who can help you choose wise investments to help you achieve your financial goals. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you’re here, it means you understand how important it is to do your homework. Before investing in fintech, then, let’s dive into exactly how this industry works.

Disclaimer – SmartAsset can be considered a financial technology or “fintech” firm. Nothing in this article is intended to apply to investing in SmartAsset, nor should this be read as a promotion of SmartAsset as a financial asset.