Here are the 5 best ASX fintech shares of the 2021 financial year

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The financial year just past proved to be a profitable one for shareholders of the best ASX fintech shares.

While Australia’s traditional banks made a strong comeback during the COVID recovery year, the 5 best fintech ASX shares trading on the All Ordinaries Index (ASX: XAO) all saw their shares gain significantly more.

As our benchmark, the All Ords (which contains the 500 largest shares on the ASX) gained 25% during FY21, which ran from 1 July 2020 through to 30 June 2021.

Now let’s see how these nimble financial players stacked up.

Best ASX fintech share: HUB24 Ltd (ASX: HUB)

The best ASX fintech share to hold during FY21 was HUB24, with shares gaining 198% over the year.

The company uses its technology driven wealth management solutions to connect advisers and their clients. And it seems to be doing so efficiently. In March this year, HUB24 reported its funds under management (FUM) had increased 237% year-on-year to $51.4 billion.

HUB24 closed the financial year trading at $28.51 per share. It has a market cap of $1.8 billion and pays a slender dividend yield of 0.31%, fully franked.

Praemium Ltd (ASX: PPS)

Taking out the number 2 spot in our best ASX fintech list is Praemium, which gained 184% over the 12 months.

The company offers portfolio administration, investment platforms, and financial planning tools for the wealth management industry. And like our number one performer, Praemium also saw its funds under management grow strongly during the year, up 96% year-on-year when it provided its March update.

Praemium closed on 30 June at $1.08 per share. With just under 502 million shares outstanding, it has a market cap of $479 million.

Sezzle Inc (ASX: SZL)

Coming in at number 3 is Sezzle. Sezzle shares gained 128% during FY21.

The buy now, pay later (BNPL) share is a relative newcomer to the ASX. It listed in August 2019 and closed its first trading day at $2.39 per share.

In a sign of the growing trend of making a number of interest free payments on purchases, it’s currently at $8.87 per share after hitting all-time highs of $11.34 on 28 August, 2020.

Sezzle finished FY21 trading at $8.81 per share.

Money3 Corp Ltd (ASX: MNY)

Moving down to number 4, we find Money3, with a highly respectable 116% share price gain over the financial year.

The company focuses on providing non-bank finance via secured automotive loans as well as secured and unsecured personal loans. In May, Money3 cited improved trading conditions to upgrade its profit guidance for FY21 from $36 million to $38 million.

Money3 closed at $3.38 per share on 30 June. It pays a 1.92% fully franked dividend yield and has a market cap of $657 million.

Afterpay Ltd (ASX: APT)

Demonstrating the continued strength of top performing buy now, pay later companies, the fifth best ASX fintech share is Afterpay. Afterpay’s share price gained 95% in FY21.

The BNPL heavyweight first began trading on the ASX in June 2017. And investors who bought shares back on day 1 would currently be sitting on paper gains of 3,912%.

Afterpay closed FY21 at $188.17 per share. With roughly 291 million shares outstanding, it has a market cap of $34.4 billion.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Hub24 Ltd, and Praemium Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 Ltd and Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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