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April 10, 2017

5 Top Fintech Companies Disrupting the Status Quo in Finance

These fintech companies are well established and constantly gaining traction

By Tom Ball

This list is a snapshot of the top fintech companies currently taking the world by storm.

They are well established and drawing a great deal of attention from investors globally, with mass uptake of their products and services. This success has led to a worldwide reach, with members of this list setting up offices in multiple global hubs.

These top fintech companies deploy business models, services and products that are fully geared towards the changing technological, financial landscape, and they are ready for the digital revolution that is set to take place.

These services also match the trend of business becoming constantly more mobile, supporting a range of devices using intuitive software. Robinhood for instance is aiming to modernise and mobilise the trading process that still remains stationary and somewhat archaic.

 

Stripe

Stripe is a provider of online payments technology that can also be accessed and used with a mobile app. Businesses are the target audience of Stripe, and they are now handling billions of dollars per year.

Situated in the payments space, Stripe has a globally well-known and formidable competitor, PayPal. 25 countries are currently on the Stripe radar, with businesses using the services in each of these countries.

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Stripe can provide support for businesses on levels of organisation and management; this is done by simplifying compliance procedures, and assistance in setting up a business. Toolkits are also provided, and modern, mobile ways to perform these functions.

The scale of the business is justified, as investors include the co-founders of PayPal itself, Peter Thiel, Mac Levchin and Elon Musk. This makes for a very convincing show of confidence for anyone seeking to invest, as it is evident that these visionaries can see the makings of the kind of success that led to PayPal’s rise to fame.

Major successes include the raising of $150 million in November 2016 via a deal involving CapitalG and General Catalyst Partners, valuing Stripe at $9.2 billion. This compares encouragingly to the $5 billion from the year prior; this rapid growth indicates growing supremacy in the space.

Not only does stripe have high profile experts investing in the company, the Stripe customers are also extremely prestigious, and include NFL, Target, SAP, and both of the presidential campaigns.

 

Robinhood

This interesting fintech is based around providing a trading app that is entirely free. This service would work well for someone who is more causally interested in trading, but also for anyone interesting still having access to an extensive range of stocks without paying commissions or fees.

Confidence in the fintech was seen in a recent valuation by DST Global which put the company at $1.3 billion amid a substantial fundraising round. This fundraiser is to gear Robinhood up for its attack on traditional brokerages that charge up to $10 per trade.

Top 5 fintechThe service is likely to interest those who comfortably use a smartphone, which is increasingly the case year on year. The user can get going with a simple set up that is familiar for a smartphone or device, by entering simple information, including a way to access finances and carry out transfers.

This fintech stands among the best as it appears to be making moves toward revolutionising trading and handling stock, which has long remained difficult to access. The service is also broadly well regarded for being less complicated than other options.

Another aspect of the trading process which would typically cause a great deal aggravation and tedium has been erased, as this fintech has made it so that the service can carry out instant verification with the majority of major banks. With bank transfers requiring the 5 working day period, these movements can be put in place and scheduled in advance.

 

Equity crowdfunding and peer-to-peer lending are all solutions provided by the next top fintech companies on the list

Fenergo

Fenergo is a provider of Client Lifestyle Management, Compliance and Client Data Management solutions for corporate, commercial and private banks. Fenergo also provides data management for investment.

Fenergo aims to come to the aid of banks at a crucial time when regulation is piling the pressure onto banks to gather and hold an increasingly vast amount of data, in addition to documentation from their clients. In turn this ramps up compliance costs while at the overall detriment of efficiency and the experience of the customer.

Top 5 fintech

The Client Lifecycle Management offered by Fenergo is aimed to be an end-to-end solution that will take the weight away from the management of such huge quantities of data and files. The calibre of the banks behind Fenergo give an indication of the relevance of the problem area, as the names involved include HSBC, RBC, BNY Mellon and Scotiabank.

Momentum behind the company has mounted consistently, gaining a huge $85 million investment in 2015. The company has spread its global mark physically too, with offices situated in London, Boston, Sidney, Abu Dhabi with Headquarters in Dublin.

 

Funding Circle

Funding Circle is a peer-to-peer lending marketplace that allows the direct lending of money from investors to small and medium-sized businesses (SME).

This fintech company holds the crown and title as being the first website to utilise the peer-to-peer lending process to fund businesses in the UK. With this pedigree the company has grown globally, now operating in the US, the Netherlands, Germany and Spain, in addition to the UK.

Top 5 fintech

By February 2017 the formidable platform has allowed for £2.5 billion in loads to be transferred, resulting in huge benefits for smaller businesses that are a huge driving component of the global economy.

The business works as an online marketplace, meaning that investors and companies seeking capital are brought together conveniently, allowing for the greatest benefit to all parties. Businesses are able to borrow up to £1 million using the service in the UK, and up to $500,000 in the US.

Over $1 billion (£650 million)-worth of loans have been financed on the platform since the business opened its door, and it seems as though currently the sky is the limit for Funding Circle.

READ MORE: Cyber security and IP rights prove problematic for fintech partnerships

Crowdcube

Crowdcube is an equity crowdfunding platform that lets businesses raise money by selling shares online. Company’s have raised over £100 million ($153 million) on the platform since it launched in 2011.

Crowdcube was brought into being by Darren Westlake and Luke Lang in 2011, and can now be considered a leading crowdfunding platform.

Top 5 fintech

A very relevant and recent example of the fintech’s success is the progress of Monzo bank, the digital challenger that recently gained its full banking license. In recent weeks Monzo accrued record breaking funding using the service provided by Crowdcube, beating a record previously held be Crowdcube itself.

To date Crowdcube has raised in excess of £185 million, subsequently building a UK market that can be can be considered dominant with close to 50% of the £245 million UK equity crowdfunding market.

The startup recently raised £6 million from City firm Numis Securities and is planning the world’s first crowdfunded IPO on the platform next year.

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