October 2022
Fintech Companies: Disrupting the Financial Services Industry
Deploying our AI to uncover and report on the strong and weak signals in fintech innovation.
Length: 15 minutes
In this report, we explore the growth and radical innovation areas within ten sub-sectors in finance and unpack the fintech companies advancing the industry and promoting sustainable finance. Each sector contains an overview of funding data and a notable fintech startup or scale-up.
What can you find in this report:
- An overview of 10 financial sub-industries;
- Technology trends and developments in the financial services industry;
- Innovative companies that provide cutting-edge and sustainable financial services.
How we made this publication:
- We utilized our Industry tool to explore different sub-sectors;
- We used the Technology tool to find trending technologies;
- Using the tool for finding companies, we selected several that showcased potential and disrupting innovation.
From Valuer:
Average funding of the Financial Services companies:
$23,753,514
Most common team size of the Financial Services companies:
11-50 employees
Average year of inception of the Financial Services companies:
2010
From Valuer
Number of financial services companies by year
Number of financial services companies by year
The financial services industry has seen significant growth in innovation in recent years, particularly with the emergence of dedicated fintech companies and sustainable finance. Fintech has spawned a series of proliferating technologies and trends across the finance sector underpinned by digital transformation. Fintech companies, in particular, have played a significant role in the growth of sustainable finance by providing platforms and tools that make it easier for individuals and organizations to invest in and access sustainable financial products.
From disruptive Fintech startups operating within open banking, fraud detection, seamless payments, and decentralized transactions, to innovative financial services that have the potential to tackle shortcomings related to personal finance, mobile payments, and the safety of transactions, this report will hopefully provide several valuable insights in both growth and radical innovation areas within the financial services industry.
Technologies Disrupting the Industry
Accounting
Accounting, or bookkeeping, is the system of tracking financial records and transactions (such as tax returns) using FinTech and/or other accounting software to enhance operational efficiency. It is an essential branch of every business since it helps them organize and understand financial data regarding income, spending, and profit.
From Valuer:
Average year of inception of the Accounting companies:
2014
Average funding of the Accounting companies:
$12,734,318
Maximum funding of the Accounting companies:
$102,970,000
Company highlight
Freshbooks
FreshBooks is a provider of cloud-based accounting software for self-employed professionals and their teams, predominantly targeting small and medium businesses. The software facilitates online payments, expense management, and invoicing, featuring time-tracking tools for automating time-consuming tasks. FreshBooks was established in 2003 with the vision to deliver seamlessly organized books and software that ensures accuracy, proves compliance, prepares detailed financial reports, and more. To date, the company has serviced over 30 million individuals, saving approximately 192 hours annually for small business owners. FreshBooks operates from its premises in Toronto (Canada), employing a team of over 700 members.
Year of inception:2003
Company stage:Growth/Expansion
Fundings:330,900,000 USD
Banking
Banking refers to the financial system or network of banks, i.e., financial institutions that manage individual and corporate finances. Banks issue credit cards and debit cards to help clients manage their expenses, deploy data analytics and eCommerce solutions, and facilitate mobile payments, among others.
From Valuer:
Average year of inception of the Banking companies:
2012
Average funding of the Banking companies:
$27,116,518
Maximum funding of the Banking companies:
$71,625,624
Company highlight
N26
N26 is a FinTech company that offers mobile and flexible banking solutions to customers across multiple countries. Leveraging modern technology, the company provides services related to the opening and handling of different types of accounts, as well as money transfers, investments, overdrafts, deposits, and cash withdrawals. N26 was founded in 2013 with the goal of transforming the way people manage their money on the go. The company is headquartered in Berlin and has nine additional offices across Europe and the Americas, with a staff of nearly 1,900.
Year of inception:2013
Company stage:Established
Fundings:1,717,629,000 USD
Cryptocurrency
Cryptocurrency is a digital currency in which a decentralized system is used to verify transactions and maintain records. It utilizes a digital ledger (i.e., blockchain) with strong cryptography security, where each individual coin ownership record is stored in the blockchain, securing transaction records, controlling the creation of additional coins, and verifying the transfer of coin ownership.
From Valuer:
Average year of inception of the Cryptocurrency companies:
2017
Average funding of the Cryptocurrency companies:
$18,427,915
Maximum funding of the Cryptocurrency companies:
$245,107,632
Company highlight
Tokeny Solutions
Tokeny Solutions developed a cross-chain platform focused on tokenization and asset digitization. Its flagship product is an end-to-end platform that enables asset owners to issue, transfer, and manage security tokens digitally and compliantly, using distributed ledger technology. Essentially, clients are intended to improve their asset liquidity. The company was established in 2017 with a vision to serve as a catalyst for companies seeking to digitize their operations and benefit from the latest technological advancements. With headquarters in Luxembourg and additional offices in Paris, London, Barcelona, and Singapore, the company has built a portfolio of over 50 clients across five continents.
Year of inception:2017
Company stage:Go-to-Market
Fundings:9,827,400 USD
FinTech
FinTech, or financial technology, refers to the digital automation of financial operations, interconnected through APIs and open banking and complemented by various technologies such as artificial intelligence (AI), big data, robotic process automation (RPA), and blockchain.
From Valuer:
Average year of inception of the FinTech companies:
2017
Average funding of the FinTech companies:
$30,542,625
Maximum funding of the FinTech companies:
$245,107,632
Company highlight
NorthStar
Northstar is a FinTech company that enables employers to support their employees via financial wellness programs. Its holistic approach is based on three pillars: FinTech tools, total compensation tools, and full-time financial advisors. Northstar was established in 2016 with an ambition to enable employees to make the best out of their benefit and compensation plans, ensuring assistance with budgeting, cash flow management, savings progress and prioritization, retirement, and estate planning. The company operates from its headquarters in San Francisco (CA), employing a team of over 70 members. It has raised more than $40 million in investment to date, with a notable client portfolio, including Zoom, Snap, Virgin Orbit, and more.
Year of inception:2016
Company stage:Growth/Expansion
Fundings:40,400,000 USD
Fraud Detection
Fraud detection comprises a set of activities undertaken to identify potential fraudulent purchases, transactions, or access to digital wallets and peer-to-peer payments. This is achieved through fraud detection tools, software for constant monitoring of user behaviors, and increased fraud detection speed.
From Valuer:
Average year of inception of the Fraud Detection companies:
2015
Average funding of the Fraud Detection companies:
$15,168,991
Maximum funding of the Fraud Detection companies:
$107,800,000
Company highlight
SEON
SEON has developed a fraud-prevention platform that allows businesses to uncover fraud patterns and identify revenue opportunities. The platform harnesses machine learning and human intelligence algorithms to gather transaction- and customer-related information, coupled with email verification and IP address analysis tools to detect transactional and behavioral fraud patterns. SEON was founded in 2017 with the core objective of helping eliminate fraudulent activities and maintaining data security. Its team encompasses over 270 members, operating from the headquarters in Budapest, and three additional offices in Austin (TX, United States), London (England), and Jakarta (Indonesia).
Year of inception:2017
Company stage:Growth/Expansion
Fundings:107,800,000 USD
Insurance
Insurance encompasses contracts and policies that a company or individual signs with a broker to financially protect their assets from potential threats and losses. The most common types of insurance include life and auto insurance.
From Valuer:
Average year of inception of the Insurance companies:
2010
Average funding of the Insurance companies:
$4,390,713
Maximum funding of the Insurance companies:
$9,400,000
Company highlight
Qover
Qover is an InsurTech company that develops and distributes digital insurance solutions to companies in various sectors across Europe. Its versatile portfolio is suitable for every type of online business, enabling companies to enhance their products and/or services with digital insurance that is simpler and more accessible than conventional insurance offerings. Since its inception in 2016, Qover has expanded its presence to more than 30 European countries while building partnerships with many renowned entities such as Deliveroo, Revolut, Decathlon, and Wolt, among others. The company operates from its headquarters in Brussels (Belgium), employing a team of over 100 members.
Year of inception:2016
Company stage:Growth/Expansion
Fundings:39,838,600 USD
Lending
Lending is the process of giving assets or finances (such as loans and credits) to an individual or a company, meant to be returned in a dedicated period of time with an interest rate that varies depending on various crediting systems.
From Valuer:
Average year of inception of the Lending companies:
2014
Average funding of the Lending companies:
$114,123,802
Maximum funding of the Lending companies:
$563,950,000
Company highlight
Bundo
Bundo is a software company developing a homonymous mobile application for financial transactions. The app allows users to lend money to other users, setting user-defined terms for the loan. Bundo provides all necessary legal documentation for financial transactions, a calendar for payment tracking, the ability to set up payment frequency, and the option to leave a “Thank You” tip. Established in 2022 in Logan (UT), the company operates with a team of six professionals.
Year of inception:2022
Company stage:Product/Prototype
Fundings:N/A
Payments
Payments are transfers of funds between parties that exchange products or services using traditional currencies or cryptocurrencies like NFTs (Non-Fungible Tokens) and ETFs (Exchange Traded Funds) on digital asset marketplaces.
From Valuer:
Average year of inception of the Payments companies:
2015
Average funding of the Payments companies:
$21,868,401
Maximum funding of the Payments companies:
$357,433,977
Company highlight
Xpress Payment Solutions
Xpress Payment Solutions is a financial services company that designs and develops multiple products for electronic payments, collections, bill payments, and funds disbursement. Licensed by the Central Bank of Nigeria, the company provides services pertaining to payment transaction switching, transaction processing, and point-of-sale (POS) deployment and management. Xpress was founded in 2016 with the main vision to enter the FinTech sector in Nigeria and provide multiple solutions in the country, enabling a stress-free customer experience in the process. The Xpress team operates from the headquarters in Lagos and the company's satellite offices in major cities across the country.
Year of inception:2016
Company stage:Growth/Expansion
Fundings:N/A
Personal Finance
Personal finance is a system of saving, asset management, and budgeting personal assets or funds, often done by using staking platforms or mobile-only banking.
From Valuer:
Average year of inception of the Personal Finance companies:
2015
Average funding of the Personal Finance companies:
$97,876,629
Maximum funding of the Personal Finance companies:
$905,620,000
Company highlight
Hugosave
Hugosave is a digital wealthcare tool that helps users spend, save, and invest money wisely. The company’s solution features a digital account that assists users in minimizing their spending by suggesting switching and reduction alternatives while helping them to remain on track with their financial objectives. The company also offers incentives for starting with investments, predominantly in gold, empowering Hugosave users to develop financial habits that grow their wealth. Since its inception in 2019, the team has grown to nearly 50 employees, operating from the premises in Singapore.
Year of inception:2019
Company stage:Go-to-Market
Fundings:11,000,000 USD
Investment
Investment is a financial contribution to a company (i.e., venture capital or angel investment) in exchange for equity, in a traditional way or online through funding platforms in the form of digital investments.
From Valuer:
Average year of inception of the Investment companies:
2012
Average funding of the Investment companies:
$13,989,529
Maximum funding of the Investment companies:
$27,000,000
Company highlight
Exabel
Exabel is a software company that aims to level the playing field in finance by making AI technology accessible to international investors. Utilizing foundational and alternative data, Exabel's software analyzes this data and builds prediction models on top of advanced machine learning techniques. Additionally, it backtests signals for alpha potential and risks quantitatively, combining multiple signals to build optimized portfolios. Exabel was founded in 2016 in Oslo and has established a presence in London and New York City as well, employing over 40 finance and technology experts.
Year of inception:2016
Company stage:Go-to-Market
Fundings:22,700,000 USD