The combination of the amount of investment being poured into the fintech space and the annual spend of the large financial institutions, means that there is an abundance of fintech companies being built around the world. Here are ten, of varying size and stage, that we believe should be kept a close eye on.
Encap security provides award-winning authentication technology that enables the future of mobile identity. It offers context-based multi-factor authentication and app shielding for the Financial services sector that turns a customer’s smart device into a banking-grade security credential. This creates a seamless experience for users across all devices. Based in Oslo, Norway, Encap works with major banks and enterprises across europe including santander consumer Bank Norway, Entercard and Sparebanken Vest. Led by serial entrepreneur Thomas Bostrøm Jorgensen, Encap’s next step is to break into the US, a huge growth market for authentication technology. The company recently opened an office in Silicon Valley and has both secured its first US customer and been awarded its second significant US patent. Encap was recently recognized in a market report by US industry analyst firm Forrester as one of the leading lights in a new generation of authentication providers.
Wealthfront is one of the fastest growing and well-documented FinTech companies on this list and given its rise to prominence in Silicon Valley, it is well deserving of its place. With over $1bn in client assets under management, it is the largest and fastest growing automated investment service in the world and has raised over $65m in funding from leading VCs including Index Ventures and Greylock Partners and high profile angels, such as Marc Andreessen, Ben Horowitz and Joe Jordan. enough said.
Hamburg based, Kreditech uses big data and complex machine learning algorithms to serve a simple mission: make faster, better, more sustainable credit decisions. The technology is fully automated and identifies and scores individuals online in seconds, based on up to 15,000 different data points. Via its platforms Kredito24 and Zaimo, the customer is able to complete the application process paperless in seconds online, mobile or via SMS and receive the funds in their bank account, a credit card or directly at an ATM in under 15 minutes. Customers can currently apply for short or long-term loans and other financial products in seven countries worldwide, including Poland, Spain, Czech Republic, Russia, Mexico, Australia and Peru. The company has raised $63m in VC funding to date, including a series B round of $40m just this month.
London headquartered Kalixa is an online payment platform which helps enterprises, sole traders and individuals make and accept payments anywhere, anytime and anyway. The business operates in three key areas of digital payments: issuing, acquiring and acceptance and there are three main products within the Kalixa Group: Kalixa Accept, Kalixa Pro and Kalixa Pay. The company processes payments for over 300 merchants and has offices in Vienna and cologne.
BillGuard is one of the hottest fintech companies to come out of the New york tech ecosystem. It is a personal finance security company recognized by online Banking report as one of the top online banking innovations of all time and has developed a new approach to identifying deceptive, erroneous and unauthorized charges on consumer credit card and debit card bills. BillGuard uses crowdsourced big data analytics to harness the collective knowledge of millions of consumers reporting billing complaints online and to their merchants and banks. The free service scans user’s e-statements daily, alerting them to bad charges and helping them get their money back. Billguard is backed by some of the world’s top VCs and angel investors including: Innovation Endeavors, La Ventures, Bessemer Venture Partners, Amir Orad, Saul Klein, Joe Lonsdale, Khosla Ventures and Founders Fund.
Mambu is an online software application for financial institutions. It was founded to investigate how technology can help provide financial services to those not being reached by banks. Delivered via a SAAS model, it has been designed from the ground up for the unique needs of financial institutions and packaged into an interface on top of a secure and scalable platform. With it, financial institutions can offer loans and savings services while integrated accounting and reporting take care of their international operations. Since 2011, Mambu has been adopted by more than 100 financial institutions in nearly 30 countries, with a primary focus on microfinance and the emerging markets.
CEO: Brett Meyers
Dublin based CurrencyFair, founded in 2009, is a P2P online marketplace enabling individuals and businesses to exchange currencies and send funds to bank accounts. The business has raised $4.8m in VC funding, with its latest round led by Frontline Ventures. CurrencyFair’s customers can exchange currency using a three step process. 1) Funds in the currency to be sold are sent by the customer to the corresponding CurrencyFair bank account. When received by CurrencyFair, they are credited to the user’s individual CurrencyFair account and made available for exchanging. 2) Available funds in a user’s account can at any time be exchanged by the user into another currency using the corresponding marketplace (for example GBP to EUR). 3) Funds received from marketplace exchanges are available to be sent out to a bank account as instructed online by the customer.Company: Nutmeg CEO: Nick Hungerford
Nutmeg is an online investment management company, founded in 2010 by entrepreneur Nick Hungerford. Headquartered in London, Nutmeg has this month raised a further $32 million in VC funding, taking its total investment up to $37 million. Existing as an intelligent savings and investment management service, Nutmeg is bringing expert, long-term portfolio management that was once only available to the few, to the masses. FCA regulated, the business believes in transparency, accessibility and charges low fees to its users.
Co-Founders: Jeff Lynn
London based Seedrs is an FCA regulated and authorised platform that allows direct, online investment in the equity of seed-stage startups. Seedrs allows anyone in Europe to invest as little as £10 into seed-stage startup companies online. And, Seedrs makes it possible for entrepreneurs to raise capital for their early-stage business. To date, over 100 campaigns have successfully raised investment through the platform, with some startups following this by getting accepted into world-class accelerator programmes, and raising follow-on funding from top-tier venture capital firms. The platform coincides with launch of the Seed Enterprise Investment Scheme (SEIS), which gives investors in eligible seed-stage companies up to 86.5% of their investment back in income and CGT tax reliefs. Seedrs has been named one of “East London’s 20 Hottest startups” by The Guardian, in July 2012; has been selected as one of the 100 most innovative UK companies in the “Smarta 100” awards in autumn 2012; and has been named by SVC2UK as one of the Top 100 Businesses in the Uk in November 2013.
Co-Founders: Neil Costigan
Behaviosec is a swedish award winning company that was selected as “Cool Vendors in Security: Identity and Access Management, 2012″ for its patented continuous authentication & Verification Technology. The company focus on innovation in behavioral biometrics, is commercializing research from Luleå University of Technology, and counts DarPa, and leading International financial institutions amongst its clients. The company has previously been selected as one of the most Innovative security companies at the RSA conference with its patented continuous authentication technology. Behaviosec adds a layer of behavioral analytics to an online financial service (such as Internet and Mobile banking), making sure it can only be accessed by a typing or swiping sequence that is uniquely connected to that person’s biometrics. anyone attempting to access the service has to use the correct pressure, velocity, and acceleration, and they must combine this with the correct sequence speed & key-flight before they can access their accounts.