Most people have heard of Fintech. However, they are probably still unfamiliar with its various forms. There are different types: those that are used by publicly traded companies; those that are owned by private individuals or businesses; and hybrid systems, which combine aspects of both the public and private sectors. One of the most popular types of Fintech is the Nasdaq-listed Goldman Sachs. It is important to understand these differences, as it guides investors toward the best type of lending for their particular circumstances.
Nasdaq listing standards are based on strict listing guidelines. In order for an offering to be considered for Nasdaq, it must meet certain guidelines, such as (I) meeting minimum listing requirements set forth in the Nasdaq Manual and (ii) fulfilling red and black letter requirements. In addition to meeting listing guidelines, an offering also must fulfill other listing requirements, such as fulfilling SEC listing requirements, conducting research to determine the company’s business model and environmental and risk management compliance, among others. For an offering to gain Nasdaq approval, it must not only meet listing guidelines, but it must also demonstrate a reasonable probability of success.
A number of financial players have had good success with their fintech ventures. A prime example is Quicken Loans, which was co-founded by the famed investor Warren Buffett. This lending giant became one of the most successful penny stocks of all-time, and is now a publicly traded company. Quicken Loans, along with partner BankFirst, became a popular alternative to traditional bank financing, especially to small borrowers and first-time homebuyers. In addition to a robust business model, they also leveraged their technology and made their online lending experience easy for borrowers and homebuyers.
Another example of a Nasdaq-listed company that is successful in the world of finance is Fidelity Investments, which is considered one of the biggest and most reliable banks in the U.S. As of this writing, Fidelity owns a total of 28 banks, including several hedge funds. Among its many offerings are its ultra-selective savings accounts and investment products, its green dot trading products, and its zero interest adjustable rate credit cards.
As stated above, there are literally hundreds of financial lending and fintech companies on Nasdaq. However, these companies fall into one of three categories: Traditional Lending, Web-Based Lending, and “Green Dot” Fintech. Traditional lending includes a variety of forms including commercial real estate loans, business lines of credit, and consumer credit. Most traditional lenders work with brick-and-mortar storefront businesses, but some also work with Internet-based businesses and e-commerce sites. Examples of Nasdaq-listed traditional lending companies include Citibank, Chase, Fleet Bank, Wells Fargo, and Prudential Financial.
The world of web-based lending has exploded over the last decade and there are now hundreds of lending options available. One type of Nasdaq-listed company that offers financial products it services through the Internet is Square, which provides Square Direct, a secure credit card processor, to consumers through its website. Green Dot, a direct lender that specializes in green loans, is another example of an Internet-based lending company that offers direct lending services to consumers.
The three different types of companies providing financial services to consumers on the Nasdaq should all be considered when discussing Nasdaq listings of the best companies in the biotech sector. In order for technology to advance, it must find a venue where it can thrive. The marketplace for technology-based lending products is only just getting started, so it’s critical to get in on the ground floor of this industry before others have a chance to dominate. When looking at potential Nasdaq listing for a particular company, it’s important to take a close look at its industry and history, its products and services, its leadership and management team, and its business plan.