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Fintech Stocks in Focus as AI and Digital Innovation Drive Growth
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An updated edition of the August 25, 2026, article.
Financial technology, or fintech, is rapidly transforming the global financial services landscape by making financial solutions more accessible, efficient and customer-centric. The integration of artificial intelligence (AI), blockchain, Big Data and cloud computing is reshaping traditional banking, payments, lending, wealth management and investment services.
Digital wallets, mobile banking, instant payment networks and embedded finance are expanding financial inclusion and enabling seamless transactions. Meanwhile, buy now, pay later solutions, AI-powered lending platforms and automated investment services are improving convenience, affordability and access to financial products.
A major emerging trend in 2026 is the growing adoption of generative and agentic AI. Financial institutions are increasingly deploying AI-powered tools to automate customer interactions, personalize financial recommendations, strengthen credit underwriting and enhance operational efficiency. Agentic AI is also creating opportunities for autonomous financial transactions and intelligent payment processing.
Concurrently, stablecoins, tokenized assets and blockchain-based payment infrastructure are gaining traction, offering opportunities for faster cross-border settlements, improved liquidity management and lower transaction costs. Real-time payments and embedded financial services are further accelerating digital transformation.
However, increasing regulatory scrutiny, cybersecurity threats, data privacy concerns and intense competition remain challenges. Nevertheless, continued technological innovation, expanding digital adoption and strategic collaborations between fintech companies and traditional financial institutions are expected to support the sector's long-term growth prospects. Hence, stocks like Robinhood Markets, Inc. (HOOD - Free Report) , Block, Inc. (XYZ - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) are attracting investor attention.
Our Fintech Screen will help you identify the right stocks now to ride on the wave of this trillion-dollar revolution. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
3 Fintech Stocks as AI-Powered Finance Gains Momentum
Robinhood is leveraging advanced technology, AI and blockchain infrastructure to strengthen its digital financial services ecosystem, enhance customer engagement and diversify revenue streams. Its mobile-first trading platform uses automation, real-time market data and advanced analytics to provide seamless access to equities, options, cryptocurrencies and other financial products.
The company is increasingly integrating AI into its operations and customer-facing services. Its AI-powered investment assistant, Robinhood Cortex, provides market insights, portfolio analysis and research capabilities, while Robinhood Legend offers sophisticated trading tools and analytics. The company has also introduced agentic trading capabilities, enabling customers to execute investment strategies through AI-powered agents. These innovations are expected to improve trading efficiency, encourage greater platform engagement and attract active investors
Robinhood plans to deepen its AI capabilities through Robinhood Agents, which are designed to analyze markets, develop strategies and execute trades. It also intends to introduce weekend equities trading and expand derivatives and prediction-market offerings. Also, Robinhood is strengthening its blockchain ecosystem through Robinhood Chain, its Ethereum Layer 2 network, and expanding tokenized assets and decentralized finance solutions. Its international expansion, alongside investments in digital banking, credit cards and wealth management, supports its ambition to become a comprehensive financial services platform.
These technology-driven initiatives are expected to support customer acquisition, improve monetization opportunities and reduce dependence on conventional trading revenues, although regulatory uncertainties, cybersecurity risks and competitive pressures remain challenges. HOOD currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2026 sales and EPS implies year-over-year growth of 18.6% and 4.4%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block is leveraging AI, machine learning (ML), automation and blockchain technology to strengthen its fintech ecosystem, improve operational efficiency and enhance customer engagement. Through its Square and Cash App platforms, the company integrates advanced technologies to simplify payments, streamline business operations and expand access to financial services.
Square uses AI-powered tools, including Square AI, to help merchants analyze sales trends, manage operations and make informed business decisions. Meanwhile, Cash App leverages ML for fraud detection, risk assessment, personalized financial services and lending. Block is also integrating AI into its internal operations through its agentic AI framework, goose, to accelerate software development, automate workflows and improve productivity.
Going forward, Block plans to expand its AI-driven capabilities through Moneybot and Managerbot, designed to provide personalized financial guidance to Cash App users and actionable business insights to Square merchants. The company also intends to deepen integration between Square and Cash App through Neighborhoods, strengthening connections between consumers and merchants.
Additionally, Block is advancing its Bitcoin ecosystem through Bitkey, its self-custody wallet, and Proto, its Bitcoin mining technology business. Investments in automated commerce, digital banking, embedded lending and AI infrastructure are expected to support its long-term fintech expansion.
These initiatives are expected to enhance customer retention, diversify revenue opportunities and improve operating leverage, enabling this Zacks Rank #3 (Hold) company to capitalize on growing demand for integrated, technology-enabled financial solutions. The Zacks Consensus Estimate for XYZ’s 2026 sales and EPS implies a year-over-year increase of 7.7% and 71.3%, respectively.
Upstart is leveraging AI, ML and advanced data analytics to transform traditional lending, improve credit accessibility and enhance operational efficiency. Its proprietary AI-powered lending platform evaluates more than 2,500 variables to assess borrowers' creditworthiness, determine loan pricing and predict default risks more accurately than conventional credit-scoring methods.
The company integrates AI across loan origination, income and identity verification, fraud detection and customer acquisition. Its automated lending infrastructure enables faster credit decisions, reduces underwriting costs and improves borrower experience. In 2025, 91% of loans originated through its platform were fully automated, highlighting its technology-driven operating model.
Upstart plans to enhance its AI underwriting models, expand its lending partner network and strengthen its presence in personal loans, automotive financing, home equity lines of credit and small-dollar lending. Its Cash Line product supports its ambition to provide consumers with flexible, continuous access to credit.
Additionally, Upstart received conditional regulatory approval in July 2026 to establish Upstart Bank, which could reduce operational and funding complexities while strengthening its lending infrastructure, subject to final approvals. The company also aims to deepen institutional funding partnerships to support loan origination growth.
These initiatives should enhance underwriting efficiency, diversify revenue opportunities and support Upstart's long-term ambition of becoming a comprehensive AI-powered digital lending platform. However, credit risks, regulatory uncertainties and funding constraints remain key challenges. The Zacks Consensus Estimate for UPST’s 2026 sales and EPS implies a year-over-year jump of 36% and 26.4%, respectively. The company carries a Zacks Rank of 3.
View the Zacks #1 Rank List
Image: Bigstock
Fintech Stocks in Focus as AI and Digital Innovation Drive Growth
An updated edition of the August 25, 2026, article.
Financial technology, or fintech, is rapidly transforming the global financial services landscape by making financial solutions more accessible, efficient and customer-centric. The integration of artificial intelligence (AI), blockchain, Big Data and cloud computing is reshaping traditional banking, payments, lending, wealth management and investment services.
Digital wallets, mobile banking, instant payment networks and embedded finance are expanding financial inclusion and enabling seamless transactions. Meanwhile, buy now, pay later solutions, AI-powered lending platforms and automated investment services are improving convenience, affordability and access to financial products.
A major emerging trend in 2026 is the growing adoption of generative and agentic AI. Financial institutions are increasingly deploying AI-powered tools to automate customer interactions, personalize financial recommendations, strengthen credit underwriting and enhance operational efficiency. Agentic AI is also creating opportunities for autonomous financial transactions and intelligent payment processing.
Concurrently, stablecoins, tokenized assets and blockchain-based payment infrastructure are gaining traction, offering opportunities for faster cross-border settlements, improved liquidity management and lower transaction costs. Real-time payments and embedded financial services are further accelerating digital transformation.
However, increasing regulatory scrutiny, cybersecurity threats, data privacy concerns and intense competition remain challenges. Nevertheless, continued technological innovation, expanding digital adoption and strategic collaborations between fintech companies and traditional financial institutions are expected to support the sector's long-term growth prospects. Hence, stocks like Robinhood Markets, Inc. (HOOD - Free Report) , Block, Inc. (XYZ - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) are attracting investor attention.
Our Fintech Screen will help you identify the right stocks now to ride on the wave of this trillion-dollar revolution. Leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to capitalize on emerging trends.
Ready to uncover more transformative thematic investment ideas? Explore 40 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
3 Fintech Stocks as AI-Powered Finance Gains Momentum
Robinhood is leveraging advanced technology, AI and blockchain infrastructure to strengthen its digital financial services ecosystem, enhance customer engagement and diversify revenue streams. Its mobile-first trading platform uses automation, real-time market data and advanced analytics to provide seamless access to equities, options, cryptocurrencies and other financial products.
The company is increasingly integrating AI into its operations and customer-facing services. Its AI-powered investment assistant, Robinhood Cortex, provides market insights, portfolio analysis and research capabilities, while Robinhood Legend offers sophisticated trading tools and analytics. The company has also introduced agentic trading capabilities, enabling customers to execute investment strategies through AI-powered agents. These innovations are expected to improve trading efficiency, encourage greater platform engagement and attract active investors
Robinhood plans to deepen its AI capabilities through Robinhood Agents, which are designed to analyze markets, develop strategies and execute trades. It also intends to introduce weekend equities trading and expand derivatives and prediction-market offerings. Also, Robinhood is strengthening its blockchain ecosystem through Robinhood Chain, its Ethereum Layer 2 network, and expanding tokenized assets and decentralized finance solutions. Its international expansion, alongside investments in digital banking, credit cards and wealth management, supports its ambition to become a comprehensive financial services platform.
These technology-driven initiatives are expected to support customer acquisition, improve monetization opportunities and reduce dependence on conventional trading revenues, although regulatory uncertainties, cybersecurity risks and competitive pressures remain challenges. HOOD currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for the company’s 2026 sales and EPS implies year-over-year growth of 18.6% and 4.4%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Block is leveraging AI, machine learning (ML), automation and blockchain technology to strengthen its fintech ecosystem, improve operational efficiency and enhance customer engagement. Through its Square and Cash App platforms, the company integrates advanced technologies to simplify payments, streamline business operations and expand access to financial services.
Square uses AI-powered tools, including Square AI, to help merchants analyze sales trends, manage operations and make informed business decisions. Meanwhile, Cash App leverages ML for fraud detection, risk assessment, personalized financial services and lending. Block is also integrating AI into its internal operations through its agentic AI framework, goose, to accelerate software development, automate workflows and improve productivity.
Going forward, Block plans to expand its AI-driven capabilities through Moneybot and Managerbot, designed to provide personalized financial guidance to Cash App users and actionable business insights to Square merchants. The company also intends to deepen integration between Square and Cash App through Neighborhoods, strengthening connections between consumers and merchants.
Additionally, Block is advancing its Bitcoin ecosystem through Bitkey, its self-custody wallet, and Proto, its Bitcoin mining technology business. Investments in automated commerce, digital banking, embedded lending and AI infrastructure are expected to support its long-term fintech expansion.
These initiatives are expected to enhance customer retention, diversify revenue opportunities and improve operating leverage, enabling this Zacks Rank #3 (Hold) company to capitalize on growing demand for integrated, technology-enabled financial solutions. The Zacks Consensus Estimate for XYZ’s 2026 sales and EPS implies a year-over-year increase of 7.7% and 71.3%, respectively.
Upstart is leveraging AI, ML and advanced data analytics to transform traditional lending, improve credit accessibility and enhance operational efficiency. Its proprietary AI-powered lending platform evaluates more than 2,500 variables to assess borrowers' creditworthiness, determine loan pricing and predict default risks more accurately than conventional credit-scoring methods.
The company integrates AI across loan origination, income and identity verification, fraud detection and customer acquisition. Its automated lending infrastructure enables faster credit decisions, reduces underwriting costs and improves borrower experience. In 2025, 91% of loans originated through its platform were fully automated, highlighting its technology-driven operating model.
Upstart plans to enhance its AI underwriting models, expand its lending partner network and strengthen its presence in personal loans, automotive financing, home equity lines of credit and small-dollar lending. Its Cash Line product supports its ambition to provide consumers with flexible, continuous access to credit.
Additionally, Upstart received conditional regulatory approval in July 2026 to establish Upstart Bank, which could reduce operational and funding complexities while strengthening its lending infrastructure, subject to final approvals. The company also aims to deepen institutional funding partnerships to support loan origination growth.
These initiatives should enhance underwriting efficiency, diversify revenue opportunities and support Upstart's long-term ambition of becoming a comprehensive AI-powered digital lending platform. However, credit risks, regulatory uncertainties and funding constraints remain key challenges. The Zacks Consensus Estimate for UPST’s 2026 sales and EPS implies a year-over-year jump of 36% and 26.4%, respectively. The company carries a Zacks Rank of 3.