Financial technology (fintech) companies are looking at high growth potential and have the opportunity to innovate in account management, payment processing, capital markets and lending. Their technologies allow consumers to access and conduct digital transactions quickly and efficiently.
According to management consulting company McKinsey & Co., there are now more than 2,000 fintech start-ups, whereas there were 800 in April 2015, and $23 billion of venture and growth equity has been deployed to these companies over the last five years. More than $150 billion could be invested in fintech companies over the next three to five years, says PricewaterhouseCoopers.
“Ninety percent of start-ups fail and fintech is no different,” says Entrepreneur magazine, based in Irvine, Calif. “Fintech companies have a much more difficult road than most start-ups because their technology specifically deals with the transfer of money, which everyone is very sensitive about.”
Entrepreneur lists the top 12 fintech companies to watch in 2018:
12. BillGuard
BillGuard alerts customers about irregular activity on their credit card and debit cards via mobile and website applications.
11. SoFi
SoFi is an online personal finance company that provides student loan refinancing, mortgages and personal loans.
10. Wealthfront
Wealthfront is an automated investment service in the robo-advisor niche, which limits the need for the traditional financial advisors offering clients advice on stocks and mutual funds.
9. Robinhood
Robinood is a smartphone app that allows customers to invest in publicly traded companies and exchange-traded funds listed on U.S. exchanges through their smartphones without paying a commission.
8. Kabbage
Headquartered in Atlanta, Kabbage provides funding directly to small businesses and consumers through an automated lending platform.
7. Commonbond
CommonBond is a marketplace lender that lowers the cost of student loans for borrowers and provides financial returns to investors.
6. Addepar
Addepar is an investment management technology company that offers an integrated financial software platform. Single and multi-family offices, wealth advisors, large financial institutions, and endowments and foundations use it.
5. Lending Club
Headquartered in San Francisco, Lending Club is a U.S. peer-to-peer lending company. Borrowers can obtain a loan and investors can purchase notes backed by payments made on loans.
4. Adyen
Based in Amsterdam, Adyen provides businesses with a single solution to accept payments anywhere in the world.
3. Braintree
With offices in Chicago, San Francisco, London, Sydney and Singapore, Braintree is a mobile and web payment systems for e-commerce companies.
2. YapStone
YapStone is an electronic payment processing platform for hospitals, non-profits and housing associations helping businesses and consumers to make payments.
1. Stripe
Stripe is an Irish technology company that allows individuals and businesses to accept payments over the internet. Its main competitor is PayPal.
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