Fintech Companies 2018

A review of the best financial technology firms

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Acorns

This is a mobile finance company that allows individuals or companies round up their debit or credit card purchase and invest the spare money in diversified portfolios with a low-cost index of exchange-traded funds. The “found money” program founded by duo father and son; Walter and Jeff Cruttenden are used to buy percentage from top brands from the buyers’ accounts. 1% from Wal-Mart, 1.2% from Apple, 4% from Boxed and Expedia and with its recent acquisition of a new startup – Portland Vault, the company plans to roll out its IRA option early in the year. With 2.9 million investment accounts under Acorns and nearly 2.4 million active users, Acorns is one of the leading private equity firms that are rivaling other companies such as savings apps and Robo advisors.

Addepar

The cloud-based software company founded by Joe Lonsdale and Palantir Technologies that allows financial advisors to follow and analyze all of a client’s investments and brings more investors on board. The company extended its services after the acquisition of ALT, a data provider covering more than 17000 hedge funds. Currently, they have over $900 billion in assets that are managed on their platform by 250 companies such as AB Bernstein, Morgan Stanley, Oppenheimer & Co. Inc., and BMo wealth Management’s CTC.

Adyen

Adyen is a multichannel payment company that outsources payment services to international merchant run by Pieter Does in 2006, with head office in Amsterdam and San Francisco and offices around the globe, Adyen is the middleman for big tech companies such as Facebook, Uber, Netflix, and Spotify using its payment processing platform. Adyen processed a total of 90 billion USD in payment from the virtual giants with more than 700 million USD in revenue almost doubling its sales that year. Adyen is a company that handles all its processing all by itself, streamlining it and improving conversion rates.

Affirm

The San Francisco based company founded in 2012 is a financial loan service company that offers installment payments to merchants at the point of sale. It aims to improve the banking industry to become more accountable and make loans accessible to a merchant at a subsidized rate at an annual interest rate of 10% to 30%. The affirm technology allows consumers to get credit card loans easily and also have a repayment plan that increases they credit scores and improves their credit history. Its partners include Wayfair and Expedia and its valued at almost 2 million USD with 1 million loans issued till date.

Ayasdi

The platform developed for defense companies is a machine and intelligent platform for companies to solve their big data and complex analytics using geometric algorithms and topological data study to increase the productivity of their companies. Ayasdi has over 500 companies using its platform to detect and stop potential money laundering trial. It is a threat to companies like IBM, SAS, and Oracle.

Better mortgage

A digital lending company founded in 2016 that uses technology to offer pre-approval, purchase, and finance mortgage loans within 24 hours of submitting an underwriting by a consumer to give them equal chance to compete with other buyers that have cash in purchasing a house. It partners with Fannie Mae and five of the largest banks in the nation. It is a threat to traditional mortgage brokers.

Betterment

This is a Robo advisor managed exchanged traded fund portfolio that aims to help investors’ goals and risks tolerance for 0.25% of the assets per annum. The mobile app allows users to access, borrow, deposit, and withdraw money from anywhere in the world. The new premium service fee of 0.40% is available for investors with more than 100,000USD investment on its platform. Betterment has over 30,000 customers with a revenue capital of over 800 million UDS but currently manages 13 billion USD of its customer’s funds.

Blend

Blend founded in may 2012 uses blockchain technology to help speed by the lending process by mortgage lenders to be more compliant and borrower-friendly by the use of its cloud-based white label software. Borrowers can now present all the needed documents online such as bank statements, tax returns, and pay stub to hasten the mortgage approval process and reduced documentation fraud. The blend is also planning to expand its services to students’ loans, car loans, and other lending sectors. Its biggest investors are Well Fargo and the U.S Bancorp and have raised a total of 500 million USD. It hopes to beats out other lending companies like SoFi, Better Mortgage, and Quicken Loans’ Rocket Mortgage among others.

Blockchain

The largest cryptocurrency based platform founded in 2011 is the most popular wallet that helps users all over the globe to transact businesses on a safe and secure platform with fear or fraud. The company services over 23 million users wallet with other companies in over 23 states in the U.S with its privately crucial own firm – Bitcoin, BitcoinCash, and Ether. Its biggest rivals are upcoming and diverse cryptocurrency such as coin base, Ethereum, etc.

Cadre

Cadree is an online commercial marketplace for individual and investors to buy shares in real estate and multifamily deals at more affordable prices than in the real estate market on the ground. Since its inception in September 2014, Cadre has closed deals worth over 1 billion USD through its platform, and it’s worth $800 million. The easy and secured method makes it a threat to real estate investment funds and commercial real estate brokers.

Chain

Chain is a cryptographic ledger system that helps financial establishment have safe and secure ledger. It was founded in 2014 as a ledger balance software app for Fintech and E-commerce institutions. Some of its investors are NASDAQ and Citigroup and it aims to eradicate inefficient conventional recordkeeping in finances.

Chainalysis

This is a Fintech platform that fosters trust based on blockchain technology between people, companies, and businesses. It also allows institution especially law enforcement to trade securely on the blockchain. Some of its investors are the IRS, FBI, DEA, and Europol who are fighting hard to stop criminals from using cryptocurrency as a means of transaction or transacting business.

Circle up

This company founded in 2012 ranks number 64 on the list of America’s most promising companies in 2014. Circle up is an innovative platform for consumer startup goods and small retailers. In 2017, it started offering credit facilities at the rates of 14% to 25%. With a new venture worth 125 million USD and accredited investors, it is no wonder that Circle up has helped over 225 startup businesses to receive $390 million in equity investments through its platform to knock-out the traditional venture capital system.

Coinbase

This is a digital wallet that is easy and most friendly in the cryptocurrency world used by more than 10 million users all around the globe. Its platform allows for trading in multiple cryptocurrencies such as Bitcoin, Ethereum, and Litecoin on the GDAX exchange and a sturdy tool for merchants. Coinbase is valued at over a billion dollars with a billion dollars in revenue. It is considered a threat to other crypto exchanges and fiat currencies.

Commonbond

This is a platform that brings together borrowers and lenders to help better education by offering loans to students. It also helps provide jobs for the undergraduates or graduate students during or after school. Commonbond launched in 2011 see to it that employer also contributes towards assisting students to that work with them repay their loans regardless of the lender. With over 17 investors, the company has raised a total of 1.5 billion in loans with only two fails. It is a threat to SoFi and Naviant.

Credit Karma

Founded in 2007, Credit Karma is a company that wants to help people make headway in their finances. It provides consumers with free credits score and credit monitoring, free tax prep software and filing. It uses consumer financial information history to be able to secure loans for them by creating a personalized recommendation for credit loans and easy approval from lending facilities. This company had over 75 million registered users and valued at over 3.5 billion USD. Its biggest rivals are LendingTree, NerdWallet, Intuit, FICO, and credit bureaus among others.

Digital Reasoning

Founded in 2000, digital reasoning is a leader in AI technology that aims to better understand cognitive behavior in humans. Its software application was created for the US army counter surveillance but it is now used by financial firms such as NASDAQ to watch the market for manipulation. The application is used by Goldman Sachs, UBS and Point72 and a rival to HP Autonomy, IBM Watson.

Earnin

A mobile app that allows users to earn their paycheck through their mobile phone instead of the conventional way that is rigid. Cash amounts of up to 500 dollars per paycheck are paid into the consumers’ bank directly for free. Earnin has signed up over 50,000 users from various companies including Starbuck, Wal-Mart, Best Buy, and Home Depot and is a threat to Payday lenders, loan sharks, etc.

Ellevest

Aiming to bridge the gender gap, is the first digital platform for women which is providing financial plans and ETF portfolio to accommodate all women. The accounts cost 0.25% asset per annum with a premium account at 0.5% for an investment of $50,000. Ellevest founded in 2014 works with real women on their needed and had signed up more than 6,000 clients and a threat financial advisor and gender-neutral Robo advisors.

Enigma

Enigma is a cloud-based data technology that helps companies record all their private and public data for safekeeping. Data are categorized into different section according to their sector such as gas, oil, liquor etc. The platform is also used by lenders to identify money laundering suspects and keep track of upcoming stores or stores that are shutting down. It is the world’s largest collection of public data with over 100,000 datasets across 100 or more countries. Its biggest rival is IBM Watson and Quandl.

Feedzai

Founded 2009, Feedzai is using AI technology to code the future of commerce by providing the most advanced risk management platform, initially developed for data scientist and aerospace engineers, Feedzai is now making banking transaction safe for payment and retailers use. Prominent users of Feedzai is Capital one, First data and Citibank with its biggest rival being IBM Watson, SAS, and FICO.

Forter

Forter is NYC based company that delivers real-time machine learning fraud prevention technology online for merchants. It aims to create a fraud-free marketplace for all buyers around the globe. With over 1 billion transactions processed each year from retailers and online marketplace including Kidbox, delivery.com, and kiwi.com. Its mission is to wipe online fraudster completely.

Fundrise

It is a crowdfunding platform founded in 2010 offering alternative investment into stocks and bonds with just 500 dollars. It also launched its eFunds in 2017, selling a share in portfolio dedicated to building and overhauling of single-family houses in urban areas. It has over 17,000 investors that have raised a total of 300 million dollars into deals through this platform.

Greensky

It is a leading company for home improvement where people can borrow loans up to 65,000 dollars through a network of contractors and banks with zero interest for a period of 6 to 60 months. The private equity firm founded in 2006 offer paperless solutions to business of all sizes. Recently, it partnered with the health sector to offer finances to doctors, dentists, and vet offices. The Greensky platform has facilitated over 10 billion dollars in loans and raised over 4.5 million dollars in equity funds.

Guideline

This is the single source provider specifically customized for research and analysis through its continuum of on-demand business research. It is a company that is helping employers plan for the future by saving up funds as they work without any charge attached. Guideline fees for an employer are 500 dollars as a one-time setup fee and $96 per worker for record keeping, investment management, and compliance reporting. It has 3,000 employers signed under it and they pay no fee and are entitled to low-cost Vanguard and DFA funds.

Gusto

Ranked 42 among cloud-based software tech, Gusto is an HR software application for small and medium business to help them organize their payroll more efficiently. Josh Reeves founded Gusto in 2011 aims to make the workplace a better place where simple and otherwise complicated tasks are solved with the automated 401(k) solution.

Icapital

Is a streamlined online platform that is providing creative solutions for businesses and individuals to invest in alternative assets like real estate with smaller funds? With its recent acquisition of the US private equity fund access funds, its post-acquisition service rose to 5 billion USD in the capital with over 10,000 investors accounts been managed successfully. It rival companies are Artivest, CAIS.

Kabbage

Kabbage was ranked number 63 as America’s promising companies was founded in 2012 as a Fintech company that helps small businesses secure small loans swiftly and efficiently by simplifying the loan process for them. The company has been able to raise a total sum of 106 million USD in venture funds from big investors such as Sofbank, Mohr Davidow, UPS, and BlueRun Ventures among others.

Kensho

Is a cloud-based platform that creates new analytics for professional using natural language in search queries and graphic user interface on a secured platform? It uses past historic data to analyze real-time issues such as natural disaster, election results or the movement in the market as the economy changes. Kensho intelligent computing system has attracted big investors such as Goldman Sachs, BofA Merrill, and Citigroup among other with a market capitalization of 65 million dollars; it is creating analytical tools for a diverse sector of the economy.

Lemonade

This company uses AI and behavioral economics to provide a homeowner with affordable rental insurance for as little as %25. It also allows customers to modify or cancel their policy on the app anytime they are through with it is designed to cut unnecessary administrative cost that usually comes with getting a home insurance plan.

LendingHomes

This flexible, transparent and reliable platform offers an easy way for customers to acquire mortgage loans without stress; with its services now available in 25 states, LendingHomes also offer investment in its flip loans for trusted investors. Currently, it has over ten thousand homes financed under it and has raised loans over 2 billion dollars since inception in 2015.

Metromile

The Metromile is revolutionizing the way car owners pay their insurance mileage with its pay-per-mile system. It currently sells car insurance plans at affordably low prizes in over seven countries. It apps also allow car insurance companies to track accidents on the road and provide help to the victims.

Plaid

It is a tool that helps small, medium, and large business to create safe and secured innovative platforms for their business. It also helps to ease the transfer of funds, track expenditure and fraudulent practices. Since its inception in 2017, Plaid has tripled its customers’ base. Large investors partnering with Plaid are Robinhood, Betterment, and coin base with rival companies like Yodlee, Quovo among others.

Qapital

Qapital Company founded in 2012 is aimed at making customers happy by helping them save, spend, and achieve future goals that they have in mind. Qapital introduced a debit card that allows users to save up for long-term goals a little at a time. The platform has over 300 users that have saved up a total of 230 million dollars. Rival companies are Acorns, Digit, and other saving apps.

Quandl

It is often referred to as the powerhouse for alternative data, Quandl helps in properly tracking down everything online or that is connected to the internet. It is a premium source for gathering commercial data to get an insight into how well a company is performing. With over a quarter a million people downloading its app daily, it is the largest mobile app for alternative data. Seven of the world biggest quart funds invested in Quandl and rival company to quantitative hedge, HIS market, and co.

Remitly

This is an app that allows the user to make an international money transfer with their mobile phone from the united state directly without any middleman.

Ripple

This is just like Remitly but on a larger scale. This app allows a financial institution to transfer finance without any third party system on a secure blockchain based platform. It has 100 and more banks on its platform such as Santander and UBS among others.

Robinhood

This is a mobile app that is offering a basic real stock trade for free with a merger fee of 10$ monthly as service charge. It also gives investor of stock trade ample and unlimited time to trade on trading platforms at no extra cost. The platform accepts over 16 cryptocurrencies allowing the user to diversify their earning; it is valued at 1.3 billion dollars with over 3 million users.

Shape shift

It is a platform with over 70 cryptocurrencies to trade with, without the need for an account or wallet. It is so secured that consumers are able to maximize profit by multiple trades.

Stripe

Valued at over 9billion dollars is helping big data companies to handle their payments over the internet. Companies like Facebook, Target, and UNICEF are just a few that stripe processes their payments. Its mission is to make online payment secured for all kinds of business regardless of their size.

Symbiont

Founded in 2013 is using blockchain technology to create a secured, decentralized platform for capital markets, it is currently working with the incorporation of Delaware to initiate blockchain tech-based ledger to track share issuance and ownership.

Symphony

The cloud-based company allows traders and consumers to connect and securely message each other in a well organized and conducive environment. The app is used on Wall Street in securing financial application by individuals. It is used by over 300000 financial institutes in 270 organization including banks. With an annual growth of 75% and a valuation of one billion, the symphony is expected to break even come 2019.

Tala

Tala, formerly known as “inventures” is a mobile and science company that is revolutionizing the financial service of startup. Tala allows new businesses and startups to secure microloans from borrowers between 10$ to 500$ by accumulating data points from mobile games and financial transaction on a consumer’s phone. It has helped secure loans worth 4.5 million with a prepayment rate of over 90%.

The Bitfury Group

This is a company that depends solely on Bitcoin in the manufacturing, developing and distributing of software and hardware solutions for Bitcoin mining and security for businesses, government establishment, and investors to securely move an asset across the blockchain. It is currently working with the Georgian government to register all landowners on the blockchain.

TransferWise

This app allows individuals to transfer money abroad without any hidden charges thus bypassing the charge fees at banks and other money transfer institutes. The company is said to save customers over $50million from these oblivious charges and $2 million for transfer charges. It is the first to partner with Facebook to allow people to transfer money through Facebook messenger. The latest valuation is $1.6 billion with annual revenue of 130 million USD.

Trumid

A financial company based in New York with over 100 years accumulated experience put together, Trumid is an electronic trading platform that brings efficiency to credit trading through data technology. 80% of users and $19 million in trade, this platform are making a difference in trading methods.

Upstart

Upstart founded by ex-Googlers is the first lending platform that is using AI and machine learning to see if a borrower is worthy of a loan. It uses non-conventional variables such as education qualification and employment records to loan finances to individuals. Basically, what upstart does is that it verifies if your credit score can afford you a loan by using alternative data. With its new algorithms, it now approves loans faster without any human intervention or interference in the loan process.

Veem

This is a payment system that is leveraging on blockchain technology to offer an easy solution to small businesses to quickly send and receive money from anywhere in the world in their local currency. The process currently bypasses bank wire transfer to create a safe and stress-free business environment for small businesses. It is already used in over 60 countries and has over 40000 sign ups too.

Xapo

This is probably the world’s most secure Bitcoin wallet by a Hong Kong-based company that allows you manage your money anyhow you deem fit. It combines Bitcoin wallet with cold storage vault to create an ultra-secure financial system.

Davide Zucchetti Fintech Review

Fintech Companies 2018
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