---
title: "Fintech Infrastructure Industry"
description: "Fintech infrastructure companies build the technology that banks and other financial firms use for payments, lending, identity."
canonical: https://www.getswoopr.com/stocks/industries/financials/fintech-infrastructure/
source: "Swoopr Investment: https://www.getswoopr.com"
---

# Fintech Infrastructure Industry

## Direct Answer

Fintech infrastructure companies build the technology that banks and other financial firms use for payments, lending, identity, data connectivity and compliance. They earn software fees and per-transaction revenue and often serve many institutions at once.

## Industry Overview

Fintech Infrastructure sits within the financials sector. The first numbers to compare across companies here are recurring revenue, transaction volume and net revenue retention. The outside forces that move them are listed under Primary Macro Drivers.

## Key Industry Metrics

- **Recurring revenue**: Revenue that repeats, such as software subscriptions and platform fees, as opposed to one-off projects. A larger share makes revenue more predictable.
- **Transaction volume**: Value or number of transactions passing through the platform. It drives usage-based revenue and shows whether clients are expanding their use.
- **Net revenue retention**: Revenue from existing customers compared with a year earlier, including upgrades, usage and losses. Above 100 percent means growth from the existing base outweighs churn.
- **Customer count**: Number of banks and firms using the platform. A larger base spreads risk, though it matters more how much each one pays and uses.
- **Gross margin**: Revenue left after hosting, support and processing costs as a share of revenue. Software revenue lifts it, while pass-through processing fees lower it.

## Primary Macro Drivers

- **Bank technology modernization**: As banks replace old core systems and move to cloud services, they buy more software and services, lifting recurring revenue and customer count.
- **Open banking adoption**: Rules giving customers control over their financial data push banks to open connections, growing transaction volume and the number of connected clients.
- **Fintech and platform growth**: Growing fintech and platform clients add transaction volume and users on the infrastructure, raising usage-based revenue and net revenue retention.
- **Regulation on data and payments**: Rules on data sharing, payments and compliance create demand for tools that meet them, but also add costs. Watch customer count and gross margin.

## Major Risks

- **Customer concentration**: A few large clients may produce much of the revenue, so a loss or repricing hits results. Watch customer count, net revenue retention and top-client share.
- **Competition from incumbents**: Banks may build in-house or buy from large vendors with existing relationships, slowing new wins. Watch customer count and net revenue retention.
- **Security and outage risk**: Breaches or outages affect many institutions at once and can bring claims and contract loss. Watch uptime disclosures, incident reports and gross margin.
- **Long sales cycles**: Bank procurement often takes long, so bookings and revenue arrive late and unevenly. Watch recurring revenue growth, backlog and sales efficiency disclosures.

## Industry Characteristics

| Characteristic | Profile |
| --- | --- |
| Cyclicality | Mixed |
| Capital Intensity | Low |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | U.S. / Global |

## Companies Associated with Fintech Infrastructure

The SEC's Standard Industrial Classification has no code that describes fintech infrastructure as a group, so there is no complete list of its filers. The companies below come from Swoopr's SEC dataset and have operations in or next to the industry. Each is classified by the SEC under its own main business.

| Company | SEC classification | Revenue | Growth | Net margin | Year |
| --- | --- | --- | --- | --- | --- |
| [Fidelity National Information Services, Inc.](https://www.getswoopr.com/stocks/companies/fidelity-national-information-services/) | Services-Business Services, Nec | $10.7 billion | 5.4% | 3.6% | FY 2025 |
| [Jack Henry & Associates Inc](https://www.getswoopr.com/stocks/companies/jack-henry-and-associates/) | Services-Computer Integrated Systems Design | $2.4 billion | 7.2% | 19.2% | FY 2025 |

Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. Listing here describes a business relationship to the industry, not a recommendation. To find more companies, use the [company directory](https://www.getswoopr.com/stocks/companies/) and the [financials hub](https://www.getswoopr.com/stocks/industries/financials/).

## Where to Go Next

The Fintech Infrastructure guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.

### More in Financials

- [Financials sector overview](https://www.getswoopr.com/stocks/industries/financials/)
- [Full-Service Brokerages](https://www.getswoopr.com/stocks/industries/financials/full-service-brokerages/)
- [Financial Technology](https://www.getswoopr.com/stocks/industries/financials/financial-technology/)
- [Fund Administration](https://www.getswoopr.com/stocks/industries/financials/fund-administration/)
- [Financial Services](https://www.getswoopr.com/stocks/industries/financials/financial-services/)
- [Group Benefits Insurance](https://www.getswoopr.com/stocks/industries/financials/group-benefits-insurance/)
- [Financial Holding Companies](https://www.getswoopr.com/stocks/industries/financials/financial-holding-companies/)
- [Health Insurance](https://www.getswoopr.com/stocks/industries/financials/health-insurance/)
- [Financial Exchanges & Data](https://www.getswoopr.com/stocks/industries/financials/financial-exchanges-and-data/)

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- [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/)
- [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/)
- [Company research](https://www.getswoopr.com/stocks/companies/)
- [All industries](https://www.getswoopr.com/stocks/industries/)

## Frequently Asked Questions

What are the main KPIs for the Fintech Infrastructure industry?

Key performance indicators for the Fintech Infrastructure industry include: Recurring revenue, Transaction volume, Net revenue retention, Customer count, Gross margin. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.

How cyclical is the Fintech Infrastructure industry?

The Fintech Infrastructure industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important.

What are the biggest risks in the Fintech Infrastructure industry?

The primary risks for Fintech Infrastructure companies include: Customer concentration, Competition from incumbents, Security and outage risk, Long sales cycles. Investors should assess each company's exposure to these factors and its track record of navigating them.

**[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)**

Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).