10 Fintech Companies to Follow in 2016
Disrupting the financial industry’s large institutions, fintech companies are providing new avenues for consumers and businesses to invest, save money, promote financial planning, and make payments. In essence, Fintech is the driving force behind the evolutionary change which is making waves across the financial services industry. With a lot of money at stake, we are bound to see a growing number of innovative companies join the ranks of those already ploughing the way forward.
This list is a compilation of 10 exciting and diversified fintech companies, some well-established and some new, that have been earmarked for their delivery of innovative, value added services.
Category: Mobile Payments
Square, which IPO’ed in New York last year, is a mobile and portable payment enabler for businesses, allowing for companies of all sizes to process mobile payments via any iOS or Android device. The software platform, co-founded by Twitter’s creator Jack Dorsey, provides a cost-effective and simplistic solution to secure credit card processing as well as affording clients a range of POS (Point of Sale) solutions. Square’s mobile compatible card reader is sent out to the customer for free and connects to mobile devices’ audio jack. Once the free Square mobile app is downloaded, payments can then be processed and Square will charge a transaction fee of the total transaction amount. The POS features include analytics, invoicing, employee management and even opening an online store. All in all, an excellent solution for companies facing the traditional challenges of expensive and complex payment systems.
Category: Wealth Management
Personal Capital redefines how you can manage and understand your financial planning, investments and net worth. This well-established fintech company set out to technologically enhance the wealth management experience by linking all accounts to a cloud based dashboard with online tools, providing financial transparency and on-call licensed advisors to optimize investment portfolios. Personal Capital charges an all-inclusive fee for the entirety of the investment management based upon the percentage of managed assets, with no additional service fees. The ability to oversee and manage your portfolio from anywhere in the world in real time is truly disruptive.
Category: Credit Card Payments
Curve is a fresh and exciting London based startup which provides a one card solution for linking all your bank cards with a universal PIN for worldwide use. The Curve Card brings improved financial management and convenience to everyday users, who can now always have the needed card on hand, as well as view all transactions across all their cards on a single screen. There is a heightened level of fraud protection when utilizing the card, as a unique token is issued for every merchant processed payment. Therefore the merchant does not receive the individual’s personal details or actual card number, enhancing security. Curve utilizes the MasterCard network and it is more than a smartcard, giving you a mobile app solution for simplifying payments.
Category: Bitcoin Wallet
As you may well know, Bitcoin has revolutionized the way people across the globe exchange value in a digitalized and decentralized fashion, and Blockchain is one of the largest and most popular wallet providers. With over 4 million users to date, the company has built software which empowers users to easily conduct bitcoin transactions. Having raised over $30 million dollars since its inception in 2011, Blockchain is now launching its 3rd wallet version with heightened security features, simplified funds backup, and accounts based fund management.
#5 ATOM BANK
Category: Digital Banking
The UK’s Atom Bank launched this year as a digital only bank for purely online and mobile transactions. BBVA, the Spanish banking group recognized this disruptive transformation of the banking landscape and invested a whopping £45 million in Atom’s alternative to old school banking. Atom Bank states that it has reduced overheads, as it has no brick and mortar branches, and therefore they are supposedly offering attractive banking rates. By the end of the year, the bank will provide customers with access to current and saving accounts, and overdrafts in addition to credit and debit cards. The cherry on top for the young trendsetter target market is the ability to name and fully customize your Atom Bank account as your own personal bank via the mobile app.
eToro’s social trading platform, which has been around for almost a decade, continues to surge and brings a real challenge to traditional brokers, as its users can copy the trading strategies of successful traders on the platform. This is indeed a compelling model empowering investors to learn and share live trading information or even capitalize on collective efforts. Traders from all over the world who might have previously been reluctant due to a lack of expertise can trade commodities, stocks and currencies simply and transparently. In 2015 the company raised $27 million in additional capital from Russia’s largest bank and a China’s Ping An insurance.
Category: Payments Solution
Stripe provides an API (Application Programming Interface) for its users, which include companies like Salesforce, Kickstarter and Twitter, allowing for them to process international credit card payments, bank transfers, Alipay and Bitcoin transfers, directly from their mobile websites. Evaluated at $5 billion, Stripe has centered its efforts on the root cause of impaired transactions, which they view as a coding issue over and above any bureaucratic and financial obstacles. With a rise in global browsing on mobile devices and exponential growth in e-commerce purchasing, Stripe, as one of the top players in the payments solution market, aims to secure its piece of the pie.
Category: Crowdfunding for Angel Investments
Angel investments totaling $160 million were crowdfunded on the AngelList platform last year. The company facilitates angel investors with deal flow and investment opportunities in startups, whilst the startups receive exposure and the ability to raise capital online. The investors are able to create investment syndicates, pledging funding to match well known angel investors current investments. AngelList has become a routine avenue to take for early stage startups, not only for raising money but also for recruiting new talent. The platform has now become a leading marketplace for startup positions, challenging the likes of LinkedIn.
Category: P2P Lending
This notable startup provides peer to peer lending services for the refinancing of students loans in the US, connecting lenders with borrowers from over 2,000 schools currently covered on the platform. Common Bond’s model aims to make it easier for students to make a saving on their student loans while providing steady financial return for the investors, both sides being part of this trillion dollar student debt ecosystem. Just this month, CommonBond acquired Gradible, an online portal for managing and optimizing student loans, in an effort to retain its hegemony within the space of student loans.
Category: Real Estate Investment
Iintoo is definitely one fintech company to watch concluding the list in the real estate investment segment. The company serves as a social investment network, specializing in exit-oriented real estate investments starting from as little as $25,000 commitment. The platform is simple to use and is secure, allowing users to access quality investments and benefit from the know-how of accredited investors. Deals on Iintoo are pre-approved investments following a rigorous due diligence process and the projected yield per annum is said to be 15%-20%. The company’s strategic partnership with renowned Meridian Capital has made waves within the real estate investment community. Now iintoo and its investors can enjoy 30 years of Meridian Capital’s experience in the US real estate market.