Fintech startups

The Top 6 Fintech Startups That Are Changing The World

Pranav Hooda
By Pranav Hooda 12 Min Read

Fintech startups provide various financial services accessible through your phone or computer and have been around for decades. However, the rise in popularity and use has made this tech more influential than ever before. 

These apps are available to everyone, from high schoolers saving up for retirement to adults investing in stocks with just a couple of taps on their smartphone screen. 

Keep scrolling if you want to learn more about what makes these fintech startups unique and how you can get involved!

What Are Fintech Startups?

Fintech combines the terms “financial technology” and “financial innovation.” Fintech refers to new technology that strives to improve and automate financial service delivery and consumption.

Fintech refers to specialized software and algorithms that operate on computers and, increasingly, smartphones to assist businesses, business owners, and people in better managing their financial operations, procedures, and lives.

Innovation is at the heart of the fintech movement, aiming to make financial products simpler, accessible, and cost-effective. The term “financial technology” comes from the combination of finance and technology, and it refers to any company that uses new technology to improve or automate financial services and operations.

The amount of fintech companies that have sprung up worldwide is astounding. According to Statistics, 8,775 fintech startups were enrolled in the United States in February 2020. Fintech startups result from beginning a firm that revolves around fintech.

How To Get Started With Fintech Startups?

To learn more about fintech businesses, you have to keep track of your financial activities. For instance, if you want to know about investing, any purchase or sale of stocks on your bank account will show up under the “investment” category on your online banking platform. 

You can start looking into how to invest further by reading articles and joining discussion boards.

Alternatively, keep an eye out for any transaction that says “401(k)” or “retirement savings” if you want to learn more about saving money for retirement. You can then look into what kind of accounts are available and the different companies that offer these accounts.

1. Funding Circle

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The Fintech unicorn from the United Kingdom is a well-known name in the Fintech growth strategy. It’s a peer-to-peer lending platform that connects investors and small enterprises. 

What are their Fintech startup concepts? 

To take the place of traditional lending methods. Aside from a great user experience, what sets them apart is their method of making services transparent by clarifying loan requirements and allowing investors to speak with business owners.

Funding Circle’s founders tackled a severe problem that many small enterprises experience. They took a customer-first strategy and provided a transparent method of obtaining loans directly from investors.

2. Acorns

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The program, which has over 3 million users, invests the spare change after users make routine purchases. Is that their concept? 

They simplified the process of investing and instilled the habit in users by providing informative content. Their consumers became sophisticated investors due to the financial knowledge they provided through the software.

The Acorn app helps customers grow and gain confidence in their financial decisions. They demonstrate that they care about their users’ subscriptions and economic well-being by providing them with a rung on the financial ladder.

3. Coinbase

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The American corporation allows users to buy and trade bitcoins. After raising $100 million in Series D funding and being one of the most downloaded apps on the App Store around the same time, the coinbase became a Fintech unicorn in 2017.

They planned to provide a new financial model to the world. Because the solution was built on Blockchain, a relatively new technology, the company realized they would have to focus heavily on laws and security compliances from the start.

You can gain clients’ trust and become one of the most well-known crypto-asset exchanges globally by displaying an unwavering dedication to regulatory compliance and security.

5. Stripe

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Stripe, the king of Fintech firms, provides payment solutions for online marketplaces, subscription services, e-commerce businesses, and crowdfunding platforms. 

Millions of internet businesses use it to arrange their online charging systems, from Pinterest and Kickstarter to Instacart and Squarespace.

To keep in mind, many of the British government’s ministries use Stripe to handle payments.

5. Sofi

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SoFi provides refinancing, lending, and wealth management services. They created an algorithm to evaluate a user’s rates and the likelihood of loan repayment based on characteristics other than income and credit history, such as education, career, and projected cash flow.

Keep in mind that SoFi provides several nice things that most banks charge for or require high balances for, such as career assistance, unemployment insurance, and financial advice.

6. Monzo

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Monzo is another challenger bank that operates. With headquarters in London and Cardiff, the London-based fintech firm employs approximately 1,600 employees. Over 5 million individuals use Monzo to manage and spend their money worldwide, and it is fully registered and regulated by the PRA and FCA.

Monzo offers three types of digital banking accounts: its regular current version, which has no monthly fees; Monzo Plus, which costs £5 per month; and Monzo Premium, which costs £15 per month.

The Premium plan includes phone and travel insurance benefits and a free £600 foreign withdrawal every 30 days. In September 2021, Monzo Flex, a buy now, pay later (BNPL) program, began, allowing customers to divide the cost of goods into three interest-free installments.

These are some fintech startups that are changing the vision to manage financing in the modern world!

Also, Read; Top 10 Equity Crowdfunding Sites for Your Startup.

Why are these fintech startups so successful?

Fintech services are popular because they are often faster, more cost-efficient, and straightforward. The truth is it’s not always the newer companies who offer fintech services; traditional banks can also incorporate these types of technology in their portfolios.

What Makes Fintech Successful? 

It continues to garner everyone’s favors even though disruptive tech usually meets with resistance.

Fintech startups are disrupting the traditional banking model by:

  • Reducing the time it takes to make a transaction, 
  • Providing increased security, 
  • Making it more convenient for customers to access their money.

The rise of fintech startups is mainly due to the demand for more customer-centric financial services. Customers want convenience and speed, so they prefer things to be online and are not interested in lengthy processes.

Fintech companies are smaller and more agile than banks. They can move faster and change strategies quicker, which means there’s less bureaucracy that slows down business decisions.

Fintechs also offer a wide variety of products through:

  • one single platform
  •  from loans and savings accounts to remittances
  • insurance, which makes them appealing to any customer looking for a simple way to manage their finances.

This way, fintech startups are becoming successful and changing how we manage our money. Read on to know more about the relevance of fintech startups!

The Future of Fintech Startups

Fintech Startups are changing the way we manage our money. Thanks to these firms, customers may now manage their money in ways that have never been possible before. 

Robinhood is one of the most well-known fintech businesses. Robinhood allows customers to buy in stocks with only a few clicks on their phone without any commission fees. 

One example from the above of a fintech startup is Acorns. Acorns work by rounding up a customer’s purchases to the nearest dollar and investing the difference, anywhere from one cent to two dollars at a time. 

This strategy has many benefits. 

  • For one, it’s like getting an interest-free loan to invest your money, which seems too good to be true. But it’s not! Other fintech startups offer similar products that allow you to invest without fees.
  • Fintech startups are changing the game for financial management in ways that were never possible before. 
  • These entrepreneurs are making retirement savings more accessible than ever before, allowing consumers who might not have had access to this type of investment before to do so today.

We only expect the future of fintech startups to continue improving finance as we know it!

How Fintech Startups Will Change Your Life

Fintech startups are making it easier than ever for people to take care of their finances. These startups allow consumers to do everything from saving and investing to paying bills and getting a loan. The possibilities for this industry are endless, and these companies will continue to change how we think about money as they grow.

Fintech will have a significant impact on your life in various ways. For example, the personal finance startup Clarity Money gives you a free credit score and helps you monitor your spending. 

Clarity Money does this by giving you an online dashboard where you can see all your accounts in one place. You can also link your other financial account to Clarity Money so that no matter where you spend money, they’ll keep track of it for you.

Conclusion

Fintech has changed the way we deal with our money. With the rise of mobile banking, bank apps, and online lending, it can be challenging to keep track of everything.

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Posted by Pranav Hooda
Pranav is a serial entrepreneur and a visionary and transformational thinker. He launched his first business at the age of 21, while still learning about it in college. He hustled from the bottom and worked hard to build his company Orento Group. He co-founded The Hustle Story while still pursuing his Master's degree from University of Leeds. He is a true believer of sharing knowledge with others and thus, the idea of The Hustle Story came to his mind.
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