3 Disruptive Canadian Fintech Firms Revolutionizing the Financial Sector

Take a closer look at these three TSX Canadian fintech stocks if you want to bet on the financial sector’s revolution.

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The Canadian tech industry is the most innovative sector in its economy. Generating roughly $96 billion per year, it accounts for 5.1% of the overall economy. Technology has become integrated into every aspect of our lives, from communicating to transacting with others. Of the several subsectors of the Canadian tech industry, the fintech space presents itself as one of the most rapidly growing markets.

Fintech companies are often called “disruptors” in the financial sector, primarily because they use technology to improve how we transact with each other. The top fintech stocks represent the future of the financial industry.

Within this niche space, several types of fintech stocks are making a positive change in the financial services landscape. Today, we will look at three stocks to keep on your radar if you want to enter the fintech space.


Nuvei (TSX:NVEI) is a $6.01 billion market capitalization global payments technology company. Headquartered in Montreal, Nuvei offers businesses worldwide with pay-in and pay-out options, enabling them to accept payments with almost 600 alternative payment methods.

After the tech sector meltdown, Nuvei stock lost considerable value on the stock market. As of this writing, it trades for $43.46 per share, down by 74.70% from its September 2021 all-time high. At around seven times price to sales, Nuvei stock no longer seems overvalued. That said, Nuvei stock’s performance on the stock market remains volatile.

It might be worth waiting on the sidelines for another quarter to see if it can be a viable addition to your portfolio.

Propel Holdings

Propel Holdings (TSX:PRL) is a $251.37 million market capitalization stock operating in the Canadian fintech sector under the brands CreditFresh and MoneyKey.

It offers customers an online lending platform, allowing those with poor credit an opportunity to borrow money. When people cannot secure loans from traditional lenders, they can secure lines of credit and installment loans through Propel Holdings’s platform.

It became a publicly traded company in the latter part of 2021, rising by 35% between October 22 and November 12, 2021. Since then, its share prices have declined. As of this writing, it trades for $7.34 per share, down by almost 50% from its November 2021 all-time high. Despite its decline in the stock market, Propel’s revenue growth and profitability have accelerated over the last two years.

After reporting an 82% year-over-year increase in its third-quarter (Q3) revenue in fiscal 2022, it looks well positioned to deliver stellar wealth growth. As it gears up to launch another consumer credit quarter in Q4 2022, it is an exciting stock to keep your eyes on this year.


Mogo (TSX:MOGO) is another major disruptor in the Canadian financial services sector. The $77.97 million market capitalization fintech company headquartered in Vancouver also offers loan services. It offers high-interest loans to borrowers who cannot secure loans through traditional lenders.

Mogo has three primary services: Mogocard, Moka, and MogoMortgage. Mogocard is a credit card that comes with a budgeting app to help customers avoid overspending. Moka offers a convenient and intuitive investing platform. MogoMortgage helps find home buyers find the best mortgage rates in their area.

As of this writing, Mogo stock trades for $1.04 per share, down by 92.78% from its March 2021 all-time high. Collectively, the company’s platforms help many people with their personal finances. It can be an excellent long-term holding if it continues to perform well in this space, despite the current challenges for the broader tech sector.

Foolish takeaway

Despite all the excitement fintech stocks offer for stock market investors, it is essential to remember they belong to the tech sector. Fintech stocks offer better returns when the market environment is favourable for tech stocks.

With rising interest rates and the threat of a recession looming overhead, investing in this space presents a substantial degree of capital risk. If you have a well-balanced portfolio and a high-risk tolerance, you can consider investing in these fintech stocks.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei and Propel. The Motley Fool has a disclosure policy.

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