Financial technology, or “fintech,” is a term for new technology that aims to improve and simplify the way financial services are delivered and used. At its core, fintech is used to help businesses, business owners, and customers better handle their finances and financial operations. It is made up of programs and apps that are used on computers and phones. The word “fintech” comes from the phrase “financial technology.”
When the concept of “fintech” developed in the 21st century, it referred to the technology used by banks and other traditional financial organizations in their back-end systems. From 2018 to 2022, there was a transition to customer-focused offerings. These days, fintech encompasses a wide range of fields, from academia to retail banking to charitable fundraising to investment management.
The creation and usage of digital currencies like Bitcoin are also considered part of fintech. Despite garnering the greatest media attention, the conventional global banking business and its multitrillion-dollar market capitalization are where the real money is.
What’s the point of Fintech?
Fintech makes it possible for people and companies to use traditional financial services in new ways that weren’t possible before. For example, many traditional banks now have mobile apps that let customers check their balance, move money, or pay a check while they are on the go. On the other hand, Robo-advisors like Betterment are less expensive and easier to use than getting investing help in person from a financial advisor.
Many business services, like loan screening and real estate evaluations, are also done automatically by fintech. When artificial intelligence is paired with huge amounts of data about customers, it helps fintech companies learn more about their clients and powers their marketing efforts, product development, and underwriting.
Is Fintech Safe?
Engaging with fintechs, many of which are still mostly uncontrolled, especially in the Wild West world of cryptocurrencies and blockchain technologies, can expose you to threats you didn’t expect or want.
Most of the time, the idea that fintechs are more moral than big banks turns out to be false. Ron Shevlin, a fintech expert, says that banks and customers who had “fintech fetishism” in the early days of the industry are now getting a harsh reality check. This is because many potential startups are having problems both because of and in addition to the Covid-19 pandemic.
It’s smart to be skeptical of flashy fintechs that haven’t proven themselves yet and their big claims. As digital data gets a million times bigger and more important to everyday life, so do large-scale security problems. Recent hacks, such as high-profile Bitcoin thefts, have made people aware of these risks.
As of now, there is no agreement on how safe fintech options are in general. Given the size and spread of the growth of fintech, it will likely be hard to find such guarantees. But buyers should be careful: In the E&Y poll, 71% of fintech users agreed with the statement, “I worry about the safety of my personal information when I do business with companies online.”
Key Takeaway
- Fintech is the use of technology by financial services companies to make their services easier to use and better for customers.
- It works mostly by breaking up what these companies offer and making new markets for them.
- Companies in the finance field that use fintech have made it easier for more people to get money and have cut costs by using technology.
- Fintech funding is on the rise, but there are problems with how regulations work.
- Robo-advisors, payment apps, peer-to-peer (P2P) loan apps, financial apps, and crypto apps are all examples of fintech apps.
Top 10 Best Fintech Companies in 2023
Here we make a list of the best fintech companies around the globe.
1. Tonik Bank
Tonik Bank is a digital bank that is leading the way. It is based in Singapore. Tonik Bank only works through digital platforms. It uses technology to provide its users with easy-to-use banking services. The bank has easy-to-use mobile and online tools that make it easy for people to start savings accounts, apply for loans, and handle their money in a way that makes banking a great experience.
- Increase in searches over the past 5 years: 9560%
- Status of growth: Exploding
- Year started: 2018
- Location: Singapore, Singapore
- Funding: $175M (Series B)
2. Rapyd
Rapyd is a payment platform that lets people pay with cards from other countries. In other words, it makes it easy for shopping sites to be localized. HotMart and Ikea are two well-known buyers.
- Increase in searches over the past 5 years: 760%
- Status of growth: Exploding
- Year started: 2016
- Location: London, United Kingdom
- Funding: $770 million(secondary market)
3. Chipper Cash
Chipper Cash is an app for sending money. They work like Cash App and Venmo in that users can send personal funds for free. They work mostly in countries in Africa, like Ghana, Kenya, and Nigeria. The banking company was worth $2 billion and got $150 million in its next series round in November 2021.
- Increase in searches over the past 5 years: 4,100%
- Status of growth: Regular
- Year started: 2018
- Location: San Francisco is in California.
- Funding: $337.2 million (Series Unknown)
4. Sendwave
Sendwave is a top money transfer service that works on making international transfers quick and safe. Sendwave is mostly based in North America and Europe, but it lets people send money to several countries in Africa and Asia. It is a fast and cheap option to standard ways of sending money. Sendwave has become a popular way to send money around the world quickly, connecting families and groups all over the world.
- Increase in searches over the past 5 years: 9400%
- Status of growth: Exploding
- Year started: 2014
- Location: Boston, Massachusetts
- Funding: Not known
5. Cash App
Cash App is a way for people to send and receive money using their phones. Customers can also buy and sell bitcoin and invest in stocks and bonds. Cash App is becoming more and more popular as a way to pay people directly, keep track of personal funds, and do business with small businesses. Their app has more than 70 million users and has made more than $1.8 billion in sales.
- Increase in searches over the past 5 years: 260%
- Status of growth: Exploding
- Year started: 2013
- Location: San Francisco, CA
- Funding: $10 million (pre-seed)
6. Sunbit
Sunbit is a fintech company that helps both buyers and businesses get credit at the point of sale. The organization helps people set up quick bill payment plans at the point of sale. This makes it easier for people to buy goods and services and helps merchants increase their sales. Sunbit improves the buying experience and makes it easier for customers in different industries to get loans by getting rid of the barriers that come with standard finance.
- Increase in searches over the past 5 years: 2,400%
- Status of growth: Exploding
- Year started: 2016
- Location: Los Angeles, California
- Funding: $460M (Debt Financing)
7. Chime
Chime is a new kind of bank that lets people use mobile banking services for free. The FDIC backs the company, and its customer base of over 12 million is growing.
- Increase in searches over the past 5 years: 372 %
- Status of growth: Regular
- Year started: 2013
- Location: San Francisco, California
- Funding: $2.3B (Series G
8. BharatPe
BharatPe is an all-in-one tool for merchants in India to accept and handle payments. They also offer point-of-sale tools and bank lines. They are now worth $900 million because they have more than 6 million users.
- Increase in searches over the past 5 years: 3500%
- Status of growth: peaked
- Year started: 2018
- Location: New Delhi, India,
- Funding: $680.5M (Debt Financing)
9. Tradovate
Tradovate is a forward-thinking online exchange that focuses on selling futures and options. Both new and experienced traders can use the company’s strong tools, real-time market info, and low prices to make trades and handle their portfolios well. Tradovate gives traders the tools they need to stay ahead in the fast-paced world of futures and options markets by putting the user experience and cutting-edge technology front and center.
- Increase in searches over the past 5 years: 3033%
- Status of growth: Exploding
- Year started: 2014
- Location: Delaware, Ohio
- Funding: Not known
10. Truist
Truist is a well-known financial services company in the U.S. It was formed when BB&T Bank and SunTrust Bank combined. Truist gives people, companies, and organizations a wide range of banking, investment, and insurance services. By combining the knowledge and resources of both historical institutions, Truist hopes to offer its customers new financial goods and digital solutions that meet their changing needs.
- Increase in searches over the past 5 years: 9800%
- Status of growth: Exploding
- Year started: 2019
- Location: Charlotte, North Carolina
- Funding: Not known
Conclusion
Our list of private financial companies to watch in 2023 is now complete. As you can see from our list of fintech companies, a lot of fintech is about making new goods that make things easier for customers. As well as automating jobs that used to need a financial adviser.
Another common theme on this list was the number of startups that are making it easier for businesses to pay each other. Since eCommerce is growing quickly, it’s not surprising that more companies are getting in. We think this trend will keep going as long as more and more people buy things online.
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