Investing in the stock market can be one of the smartest moves you make for your financial future. The secret is regularly saving and consistently adding money to your retirement and brokerage accounts each month.

But when it comes to picking the right stocks, what’s the game plan? If you’re in it for the long haul and can embrace a bit of market volatility for the chance at impressive growth, then growth stocks might just be for you.

These early-stage growth companies are on a mission to capture market share and carve out a niche in their industries. The fintech sector is bursting with opportunities for up-and-comers challenging traditional legacy operators. If you are searching for growth stocks, here are three fintech stocks to consider today.

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Nu Holdings

Nu Holdings (NU 0.45%) operates Nubank, the fast-growing digital bank that has taken Brazil by storm. Since its founding in 2013, the company has established a dominant position in the region, serving 107 million customers, or approximately 60% of Brazil’s adult population.

The company has done an excellent job of growing in Brazil. Now, it has set its sights on expansion in Mexico and Colombia, where it has 12 million and 3.4 million customers, respectively. These two regions represent areas in Latin America where significant populations of unbanked or underbanked individuals reside.

In April, Nu Mexico Financiera received regulatory approval to begin the process of converting into a bank. It had been operating as a Popular Financial Society (SOFIPO), which enabled it to offer basic financial services, including deposit accounts and personal loans. With its upgraded banking license, Nu will have an opportunity to expand its portfolio of credit and other financial products in Mexico, including payroll loans and higher deposit limits.

Nu is also expanding its product lines beyond traditional financing, venturing into marketplace offerings (Nu Marketplace), travel solutions (Nu Travel), and telecommunications services (NuCel). This strategy enables it to cross-sell to existing customers, aiming to create a broader ecosystem that diversifies its revenue.

Nu is a fast-growing company that trades at a reasonable valuation, making it a solid growth stock to scoop up today.

Lemonade

Lemonade (LMND 4.26%) underwrites insurance policies leveraging artificial intelligence (AI) to automate much of the buying and claims process for customers. It aims to challenge legacy insurers and views AI as a means to enhance insurance claims and drive efficient, scalable growth.

Growth has been solid. In the second quarter, Lemonade’s in-force premiums were over $1 billion, representing a 29% increase from one year ago. However, to take on legacy insurers, Lemonade must prove that its AI-powered underwriting differentiates itself from competitors.

One important metric to gauge Lemonade’s success here is the loss ratio. For Lemonade to succeed in the industry, it must improve this ratio, as that’s the only way it will drive sustainable, profitable growth. The company aims to keep this ratio below 75%. In other words, for every $100 in premiums taken in, $25 is left over after paying out claims costs.

Since last year, its trailing 12-month gross loss ratio has improved from 79% to 70%. Management has said that this ratio “best results ever and squarely within the healthy range of our business model,” and “perfectly aligned with our long-term goals.”

The company still has work to do to improve its bottom line, but its improving loss ratio is a welcome sign to investors and shows that it has made excellent progress with its AI-underwriting model. The stock remains a high-risk, high-reward one, but if Lemonade can continue to dial in models and automate more of the process, its long-term upside could be huge.

Root Insurance

Root Insurance (ROOT -0.39%) underwrites automotive insurance policies, leveraging AI and driving data to price its insurance policies. Its business is built on a similar technology (telematics) that helped Progressive become a powerhouse in the industry. Telematics is a system that collects driver data, including braking speed, turning, driving time, and other driver habits, which can predict a driver’s safety and thus determine their premium costs.

The company’s algorithms rapidly iterate and make significant improvements to segmentation, enabling it to price products adequately across various customer segments and all geographies. In the second quarter of 2025, Root released its next-gen pricing model, which it expects will substantially improve risk selection and increase customer lifetime values by 20% on average.

Last year, the company delivered a surprise net profit of $31 million, and the stock surged as a result. Its underwriting has improved tremendously. In the second quarter, its gross loss ratio was 60%. Meanwhile, its combined ratio (which takes losses plus other expenses divided by premiums taken in) was a solid 95%.

The stock has taken a hit more recently due to an uptick in spending on advertising as it focuses on more growth. It looks like a good spot for investors to add the stock before growth reaccelerates.