The global fintech market is expected to grow from $127.8 billion in 2021 to $332.4 billion by 2028, at a compound annual growth rate (CAGR) of 22.8%. The growth of the fintech space is being driven by a number of factors, including:
- The increasing adoption of digital payments: The COVID-19 pandemic has accelerated the adoption of digital payments, as consumers have been forced to stay home and shop online.
- The rise of mobile banking: Mobile banking is becoming increasingly popular, as it allows consumers to access their financial accounts and make payments on the go.
- The growth of peer-to-peer (P2P) lending: P2P lending is a new form of lending that allows individuals to lend money to each other directly, without the need for a bank.
- The development of new technologies, such as artificial intelligence (AI) and blockchain: These technologies are being used to develop new and innovative financial products and services.
The growth of the fintech space is having a positive impact on the global economy by making it easier for people to access financial services and helping to reduce costs and improve efficiency, while creating new jobs and opportunities for businesses and consumers.
Fintech is highly competitive, with a number of established players and new entrants vying for market share. However, the industry is also highly innovative, with new products and services surging to the forefront, creating interesting opportunities for investors interested in outsized growth.
Below, we take a look at a couple of the most interesting emerging opportunities in the space that still seem to be flying under the radar.
TOP Financial Group Ltd (NASDAQ: TOP) has jumped onto the radar in the fintech space over the past few days after vaulting higher. In all, the stock ran from less than $10/share last week to more than $250/share on Friday. It closed at over $50/share on Monday.
The action is insane, to be sure. But it’s important to focus on the market space – fintech. You aren’t going to find a stock in retail pet products moving like this.
TOP Financial Group Ltd (NASDAQ: TOP) was Founded in Hong Kong. The Company, through its operating subsidiaries, operates online brokerage platforms specializing in the trading of local and foreign equities, futures, and options products.
According to its materials, the trading platforms, which the operating subsidiaries license from third parties enable its investors to trade on renowned stock and futures exchanges around the world, including the Chicago Mercantile Exchange (“CME”), Hong Kong Futures Exchange (“HKFE”), The New York Mercantile Exchange (“NYMEX”), The Chicago Board of Trade (“CBOT”), The Commodity Exchange (“COMEX”), Eurex Exchange (“EUREX”), ICE Clear Europe Limited (“ICEU”), Singapore Exchange (“SGX”), Australia Securities Exchange (“ASX”), Bursa Malaysia Derivatives Berhad (“BMD”), and Osaka Exchange (OSE).
The operating subsidiaries are licensed with the Securities and Futures Commission of Hong Kong (“HKSFC”) to carry out type 1 (dealing in securities), type 2 (dealing in futures contracts) regulated activities, and are licensed with the HKSFC to carry out type 4 (advising on securities), type 5 (advising on futures contracts), and type 9 (asset management) regulated activities in Hong Kong. TOP is also in the process of completing its acquisition of Australia licensed company TOP 500 Sec Pty Ltd, which will provide dealing services in derivatives and foreign exchange contracts, and financial product advices for derivatives, foreign exchange contracts, debentures, stocks or bonds in the near future.
TOP Financial Group Ltd (NASDAQ: TOP) hasn’t announced anything that accounts for its recent move. But it has defended itself against any notion that it has worked to foment any unnatural market action. Traders and investors looking for outsized gains will likely see it as a beacon of interest.
AGBA Group Holding Ltd (NASDAQ:AGBA) is likely a more interesting candidate from a fundamental standpoint. The stock hasn’t appreciated a thousand percent in the past few days, which is another “plus”. However, the company has been racking up some interesting catalysts.
AGBA bills itself as a leading one-stop financial supermarket in Hong Kong makes certain clarifications to their projected revenue, franchise strength, and engagement with investors and analysts.
AGBA Group Holding Ltd (NASDAQ:AGBA), as previously stated in the disclosure of “AGBA Group Financial Projections 2023-2027 and Valuation Presentation” released on April 14, 2023, noted that it expected to achieve approximately US$160 million in revenue for 2023, which is equivalent to a 533% growth from the full year revenue in 2022 as reported in the Form 10-K for the fiscal year ended December 31, 2022.
During the three years under COVID-19 impact from 2020 to 2022, the group maintained a solid revenue track record between US$69m to US$88m per annum. AGBA expects that the current China’s border reopening will spur a new wave of revenue growth in 2023 and 2024. Further disclosures and explanations can be found in the “AGBA Group Financial Projections 2023-2027 and Valuation Presentation” at www.agba.com/ir.
The stock hasn’t yet popped up onto the radar of momentum meme investors. But it is situated in the Chinese Hong Kong fintech space, where we have seen a number of explosions over recent months. The stock bears attention.
AGBA Group Holding Ltd (NASDAQ:AGBA) is situated in AGBA Tower in Wan Chai, a prominent business district in Hong Kong, serving as the headquarters of its core financial services business. With over 30 years of track record and a workforce of 2,600+ colleagues, the Group specializes in selling life insurance policies and mutual funds, making AGBA one of the largest and most established companies in the region.
Other key growth players in fintech include PayPal Holdings Inc (NASDAQ: PYPL), Block Inc (NYSE: SQ), SoFi Technologies Inc (NASDAQ: SOFI), Upstart Holdings Inc (NASDAQ: UPST), and MercadoLibre Inc (NASDAQ: MELI).
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