Fintech startups are companies in the fintech industry. It is a rapidly growing industry that is transforming the way we manage our money.
Thus, fintech companies are using technology to create new and innovative financial products and services that are more accessible, affordable, and convenient for consumers and businesses alike.
In this blog post, we will take a look at some of the top fintech companies and startups you should know. These companies are at the forefront of the fintech revolution, and they are developing the products and services that will shape the future of finance.
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What Are Fintech Companies/Startups?
Fintech companies & startups are organizations that use technology to enhance and automate the use and delivery of financial services. These companies are usually seen as disruptors to the conventional financial services industry.
They use technology to improve the accessibility, affordability, and convenience of financial products and services for consumers and businesses. Furthermore, Fintech startups are playing an increasingly essential role in the global financial system.
They help to make financial services more inclusive and efficient, and they are driving innovation in the financial sector. Meanwhile, they offer various financial products and services, including:
- Mobile banking
- Online payments
- Peer-to-peer lending
- Cryptocurrency exchanges
- Blockchain-based financial services
- Insurtech, etc.
How Do Fintech Companies & Startups Work?
Fintech companies primarily offer financial services (often using digital platforms like mobile apps). These firms use cutting-edge technology to automate financial processes and enhance user experience.
Below is a summary of how fintech firms work:
- Collect data: These firms collect data from users for proper investment decisions and to enhance their services.
- Provide financial services: They offer different financial services such as insurance, digital payments, investment management, personal loans, etc.
- Government-regulated: Fintech organizations are often regulated by government agencies. This is to ensure that they are safe for customers’ use and function legally.
- Build partnerships: The top fintech startups usually partner with conventional financial institutions to offer complementary services and reach a large customer base.
- Revenue generation: They generate revenue through the interest they earn from the loans they provide or by charging fees for their services.
- Technology: These firms also utilize technology like Blockchain, machine learning, artificial intelligence, etc., to automate financial processes. Thus, they are faster, more accessible, and more convenient for financial services.
12 Top Fintech Companies & Startups To Know
While banks are financial institutions that have made considerable tech-driven changes, fintech startups have been driving innovative changes in the financial industry.
So, we’ve compiled a detailed list of the 12 best fintech companies & startups you should know.
1. Western Union
Western Union is a fintech company that allows customers to send and receive money, pay bills, and track money transactions. You can access these services online or by visiting one of the company’s physical locations. Additionally, its services and products are available in over 200 countries.
2. Cash App
Number 2 on our list of top fintech companies & startups is Cash App. Cash App uses its mobile app to help you manage money. Further, its mobile platform enables you to customize debit cards, complete instant transactions, buy Bitcoin and stocks, and set up direct deposits. Therefore, you can access various financial services at your convenience, using the Cash App platform.
3. Upgrade, Inc
Upgrade, Inc. is an online financial services and personal loan provider. However, it is not a bank. Upgrade, Inc. provides affordable short-term fixed-rate loans ranging from $1,000 to $50,000. But this loan is typically for everything from auto refinancing to home repairs. In addition, the firm provides credit monitoring, checking and savings accounts, and credit cards. Therefore, it deserves a spot on our list of best fintech companies & startups.
SoFi offers wealth and loan management, and refinancing services. To determine the possibility of loan repayments, this fintech company’s algorithm considers factors beyond credit history and income. Rather, it considers other things like estimated cash flow, career, and education. Again, you may want to consider using this fintech company because it provides benefits that many financial institutions need huge balances or charge extra for. This included financial advisory services, unemployment protection, and career services.
Klarna’s app allows online shoppers to decide when to pay for their purchases. They have options like a financing plan that runs from 6 to 24 months or paying in four installments without fees or interest. In addition, you can use Klarna’s Card to earn points that can be redeemed for rewards. So, we consider it among the top fintech startups & companies.
This wealth management platform is typically used by wealth advisors, families, broker-dealers, and private banks. Addepar also manages and consolidates information across investments. As a result, it offers a broader view and enables investors to make more informed decisions.
Square supports businesses of all sizes through its products. For instance, the organization’s tools suite for retailers can assist with syncing in-store & online operations and handling inventory. The company also provides contactless hardware such as its Square Terminal for accepting payments and printing receipts.
We cannot discuss the best fintech companies & startups without discussing Chime. This pioneer mobile bank provides no-fee & automatic savings accounts, and early payday through direct deposit. It has over one million accounts opened.
Tango offers a platform for rewards such as digital products and gift cards. So, organizations use these rewards for in-house incentives for staff members and gifts to partners and clients. Also, the platform can integrate with several popular SaaS products so that rewards will be automatically triggered by certain actions. For instance, a new customer who makes their first purchase can trigger a reward with that action.
iCapital connects investors with private equity companies, hedge funds, and alternative asset managers. Meanwhile, the alternative assets in question are investments that are not cash, bonds, or stocks. In addition, iCapital’s platform provides investors with options like growth equity and venture capital. This enables them to build a bespoke portfolio that’s more targeted than a conventional hedge fund.
11. Northwestern Mutual
Northwestern Mutual has been excelling for more than 160 years and the company has remained innovative in serving customers. The firm allows clients to create long-term plans with mobile & online tools, view insurance products, and track their finances. Further, Northwestern Mutual has lessened the underwriting process time frame to a day. This was achieved through its digital technologies. Thus, clients can easily kickstart their financial journeys.
See also: 12 In-Demand Fintech Jobs
MarketAxess is the last on our list of top fintech companies and startups you should know. It operates an electronic trading platform for fixed-income assets. These assets include bonds and other assets & securities that pay a specific amount of dividends/interest to investors. Additionally, they are traded through telephone conventionally. Through the MarketAxess platform, customers can trade assets electronically and access resources on emerging and existing markets across regions.
The fintech industry is rapidly evolving, and new companies and startups are emerging all the time. Meanwhile, the companies and startups listed in this blog post are just a few of the many exciting fintech companies to know. You can make your selection based on the service you want.