S&P Global Market Intelligence’s 2024 Trends in Fintech report highlighted 10 trends for this year, culminating in the industry’s return to a more normal economic environment. While it does not provide fintech stocks to buy, provides suggestions on where to look in 2024. The summary of the report declared:

“With the “rapid growth fueled by cheap capital” era of fintech now firmly in the rearview mirror, 2023 has been marked by a retrenchment and recommitment to business fundamentals across the industry. With capital in short supply, the line between fintechs that have found product-market fit and those that have not is clearer than ever.”

So, who are these fintechs who have found product-market fit? I will consider companies that participate in and benefit from three of the 10 trends covered by S&P Global Market Intelligence.

Here are my three fintech stocks to buy for 2024 and beyond.

SoFi (SOFI)

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SoFi (NASDAQ:SOFI) shares have taken a hit in 2024, falling more than 29% year to date. It trades within 50 cents of its 52-week low.

Of the 10 trends covered in the above-mentioned report, the second is banking as a service (BaaS). The S&P Global Market Intelligence report states:

“While we believe in the long-term potential of banking as a service (BaaS), current market conditions could hinder the growth prospects of many startups in this highly saturated segment.”

While investors tend to think of SoFi’s student lending, personal and home equity lending platform, the company also has a technology business, Galileo Technologies, which helps financial services companies create new products more quickly and effective. Seth McGuire, Chief Revenue Officer at Galileo, said:

“As a leading enabler of BaaS and integrated finance, Galileo and companies like Central Payments are transforming the way financial services are delivered. Our API-forward approach and scalable, extensible platform enable innovative brands to build the next generation of financial products to meet customers when they need them.”

SoFi technology platform generated 151 million accounts in the first quarter of 2024, 20% more than the previous year. This translated into revenue of $94.4 million, 21% higher than the previous year, while profit from the contribution was $30.7 million, 107% higher than the first quarter .

It will become a bigger part of SoFi’s overall business in the coming quarters, strengthening SoFi’s presence as one of the fintech stocks to buy.

Mastercard (BUT)

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MasterCard (NYSE:BUT) AND Visa (NYSE:V), its biggest rival, has stock returns strapped to its hip. In 2024, MA shares will rise more than 5%, 72 basis points higher. Over the past year it has risen nearly 20%, 53 basis points higher. Finally, over the past five years, it has grown more than 66%, 889 basis points more than Visa.

This is the good news. The bad news is that both payment processors underperformed S&P500.

Of the 10 trends that emerged from the report, Mastercard uses generative artificial intelligence to detect fraudulent use of bank cards. Mastercard’s may 22 press release stated:

“The new technology works by scanning transaction data across billions of cards and millions of merchants at faster speeds than previously imaginable. This alerts Mastercard to new and complex fraud patterns. Using AI-based generative predictive technology created by Mastercard, it can protect future transactions from emerging threats.”

Thanks to the new technology it is able to detect the included cards twice as fast as in the past. This is great news if you have a Mastercard-branded bank card.

Mastercard’s operating margin in the first quarter of 2024 was 56.8%, 220 basis points higher than a year earlier. It has plenty of free cash flow to pay for the development of new technologies – $10.62 billion over the past 12 months – to keep shareholders confident in their long-term investments.

Rods (CNNE)

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Reeds (NYSE:CNNE) is the least fintech-related stock of the three. However, as the company has underperformed over the past five years, it represents a good under-the-radar play, sum of the parts.

The company is led by William Foley II: among his many roles, he is president Foley Entertainment Groupwho owns the NHL’s Vegas Golden Knights, who returned to the CEO role in February to give it a shot to reverse losses the holding company created in 2023. The former CEO, Richard Massie, is now vice president. He will help Foley look for new investment opportunities.

Reeds it was separated in 2017 by Fidelity national financial initiativesa tracking stock of National financial loyalty (NYSE:FNF), another Founded by Foley company, where it is located Non-executive chairman and owns 3.4% of the title.

One of the companies owned by Cannae is IT services, a company that provides fintech, regtech and cybersecurity solutions to financial institutions and corporate clients, both foreign and domestic. As S&P Global Market Intelligence’s eighth trend states, “Regtech will have its moment” in 2024. Cannae’s 6.4% stake in CSI is worth $88 million starting March 31st.

Its largest investment is a 15.6% stake. Dun & Bradstreet Holdings (NYSE:DUNB), valued at $705 million at the end of March, down from $828 million at the end of December. D&B is working with IBM (NYSE:IBM) to lead other organizations adoption of generative artificial intelligence.

As of May 31, its net asset value (NAV) per share of $32.83. It trades at a 45% discount to its NAV.

As of the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Guidelines for publication.

Will Ashworth has been writing about investing full-time since 2008. Publications he has appeared in include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and many others in both the United States and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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