On December 11, Reuters reported that Wealthfront, an automated digital wealth management firm, raised $486 million in its initial public offering to round off a solid year for fintech flotations in New York. The Palo Alto, California-based company joins other big fintech names that have gone public in 2025. These include US digital bank Chime Financial, Inc. (NASDAQ:CHYM) and Swedish firm Klarna Group plc (NYSE:KLAR), both of which went public earlier in the year.

Founded in 2008 by Andy Rachleff and Dan Carroll, Wealthfront offers automated tools like cash accounts, ETF and bond investing, trading, and low-cost loans. It pioneered automation for low-cost investment portfolios and added artificial intelligence to its financial planning software.

On December 12, Wealthfront listed on Nasdaq under the ticker “WLTH.” Underwriters for the offering included Goldman Sachs, JP Morgan, and Citigroup. According to Reuters, the shares opened flat on December 12, Friday, which valued the company at $2.63 billion on a fully diluted basis.

Investors stayed selective amid a crowded fintech listing. IPOX research analyst Lukas Muehlbauer said:

“While several high-profile deals saw strong first-day returns, the broader aftermarket performance for large fintech deals was mixed.”

Fintech issuance has begun to rebound after a sharp post-pandemic slowdown. In 2025, so far, approximately 10 fintech IPOs in the Americas have raised over $6.5 billion. This is up from $148 million in 2022, per Dealogic data.

With this in mind, let’s take a look at the 14 most promising fintech stocks to invest in.

Our Methodology

To compile our list of the 14 most promising fintech stocks to invest in, we looked for the biggest fintech companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best fintech stocks. Next, we focused on the top 14 most promising stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q3 2025 database of 978 elite hedge funds. Finally, the 14 most promising fintech stocks to invest in were ranked in ascending order based on the number of hedge funds holding stakes in them as of Q3 2025.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).

14 Most Promising Fintech Stocks to Invest In

14. Toast, Inc. (NYSE:TOST)

Number of Hedge Fund Holders: 56

Toast, Inc. (NYSE:TOST) is one of the most promising stocks in the fintech industry to invest in. On December 4, UBS reiterated its Buy rating on Toast, Inc. (NYSE:TOST) with a price target of $50.

On December 4, JPMorgan also upgraded its rating on Toast, Inc. (NYSE:TOST) to Overweight. JPMorgan believes 2026 will mark a fresh start for payments and fintech stocks. The firm noted that 2025 was the sector’s worst year in 15 years, aside from the COVID surprise. JPMorgan pointed out that slow growth and worries of “commoditization and uncertain ROI” hurt sentiment in 2025 and that it is “happy to flush 2025.”

The research firm says that it is “going back to basics” for 2026 with a focus on companies with pricing power, solid margins, and strong front-book momentum. JPMorgan analyst Tien-tsin Huang noted that Toast, Inc. (NYSE:TOST) is one of the names that scores best under this framework. The firm said it has “been eagerly waiting for the right time to take a seat at the Toast table.” JPMorgan highlighted the stock’s year-to-date decline, even as estimates rose 27%.

JPmorgan expects Toast, Inc. (NYSE:TOST) to sustain “top decile growth” as a leader in software-led payments. The firm pointed to its rule of 54% for 2026.

Earlier on December 1, BNP Paribas Exane had also upgraded Toast, Inc. (NYSE:TOST) from Neutral to Outperform and kept the price target at $40.

Toast, Inc. (NYSE:TOST) is an American company that offers financial technology solutions and restaurant management software. It provides a cloud-based, all-in-one digital technology platform designed for the restaurant industry, offering software and financial technology solutions that help restaurants across point of sale, payments, operations, digital ordering and delivery, marketing and loyalty, and team management.

13. Grab Holdings Limited (NASDAQ:GRAB)

Number of Hedge Fund Holders: 59

Grab Holdings Limited (NASDAQ:GRAB) is one of the most promising stocks in the fintech industry to invest in. On December 9, Benchmark reaffirmed its Buy rating on Grab Holdings Limited (NASDAQ:GRAB). This update came after a virtual non-deal roadshow with the company’s investor relations team, which confirmed a positive outlook for fiscal year 2026.

Benchmark pointed out that Grab Holdings Limited (NASDAQ:GRAB) is aiming for sustained growth in its core Deliveries and Mobility segments. The company is also looking to maintain stable incentive levels, which shows good operational efficiency.

The research firm pointed to Grab Holdings Limited’s (NASDAQ:GRAB) Fintech business as a possible key driver for margins. It has plans to accelerate growth in its loan book with a clear path to profitability. Breakeven is expected next year. Benchmark attributed the recent weakness in Grab Holdings Limited’s (NASDAQ:GRAB) stock price to profit-taking in high-beta outperformers and the company’s cautious guidance. It is not because of any fundamental business worries.

Benchmark sees this weakness as an attractive chance to invest. It is a good opportunity for investors wanting exposure to emerging markets in the fiscal year 2026 portfolios. The research firm expects Grab Holdings Limited’s (NASDAQ:GRAB) efforts to make services more affordable to boost user adoption and market reach.

Grab Holdings Limited (NASDAQ:GRAB) offers a superapp in Southeast Asia, providing services across deliveries, mobility, and digital financial services. The company serves over 800 cities in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.