Fintech or financial technology is transforming the industry by making it easier for people to borrow and invest money, transfer funds, and gain access to high-end financial services. Covering areas such as online peer to peer lending, investment learning apps, mobile banking, digital wallets, and even digital currencies like Bitcoin and Ethereum, fintech consists of startups and mature companies which are disrupting or enhancing payments, insurance, lending, and other financial practices in the business to business (B2B) and business to consumer (B2C) arenas.
Wall Street provides both a breeding ground for financial technology initiatives and a talent pool for the burgeoning fintech sector. In addition, closeness to one of the world’s leading stock markets and interest from venture capitalists makes fintech NYC a healthy contributor to the city’s financial ecosystem.
Among the fintech companies NYC has to offer in 2020 are a challenger bank for teenagers, a no-fees credit card company offering access to people without a credit history, and an investment advisory service managing $15 billion in assets.
The current roster of Top Fintech Companies NYC includes:
An active and respected player on the $10 trillion credit derivative market, Axoni is a blockchain firm whose distributed ledger enables users to access payment information, calculations, and other vital trade data in real-time, and provides greater transparency.
Goldman Sachs, JPMorgan, and other big Wall Street names have invested over $57 million in this startup, which is also developing expertise in smart contracts.
Top Fintech Company: Betterment
Betterment is a digital wealth manager whose “robo-advisor” algorithm selects investments and builds a diversified portfolio for its clients — most of whom are Millennials. The company also employs human investment advisors, with a staff of 240 people, and a portfolio of more than $16.4 billion in assets.
Climb Credit is a student loan outfit offering curated finance packages for selected courses from selected colleges and universities. The company’s focus is on “schools offering the knowledge and skills required for jobs with strong earning potential in today’s economy.”
Climb Credit is working with 70 schools across America and has financed the education of 6,000 students to date. The company has also secured $66 million in venture capital (VC) funding and debt.
One of the more distinctive players on the fintech New York landscape, Current, is a challenger bank that focuses solely on banking products for youngsters. The Current app provides a mobile-only platform for teen banking. Users can instantly transfer money to family or friends, save funds, or create a direct deposit for paychecks.
Current issues a Visa debit card for payments and supports Apple Pay, making it easier for parents to provide funding to their kids on the platform. The company has a valuation of $80-$120 million.
Powered by a machine learning platform and a stable of expert human analysts, Forter focuses on digitizing anti-fraud processes. Solutions analyze everything from the location and browsing history of a potential buyer, to the type of device they are using, in deciding whether or not to accept their credit card or decline the transaction as fraudulent. The company has a valuation of between $200 and $300 million.
Top Fintech Company: Lemonade
Lemonade is an insurance carrier that has already attracted more than $470 million in funding, and which, as of last year, attained “unicorn” status, with a valuation of two billion dollars.
Lemonade uses artificial intelligence and behavioral economics models to compile insurance offers for homeowners and renters. Customers pay a flat monthly fee, which is partly used to cover potential claims, and partly for buying reinsurance.
The MoneyLion challenger bank is approaching unicorn status, with a 2019 valuation of $800 million. MoneyLion offers an enhanced mobile banking experience to its more than two million customers and has originated 200,000 loans via its mobile app. Its platform uses machine learning to provide users with a personalized financial advisory. The company also runs a loyalty rewards program, offering various benefits to clients who display healthy financial habits.
One of the top fintech startups in NYC, Petal, issues credit cards without any fees and to applicants without an existing credit history. The company uses a complex analysis of a person’s overall financial history to make issuing decisions and is extending its Visa cards for everyday purchases to people who often struggle to access credit cards, such as lower-income applicants or recent immigrants. Customers get a credit line of up to $10,000.
Top Fintech Company: Policygenius
Another insurance technology or insurtech player, PolicyGenius, was founded by two former McKinsey consultants who saw a gap in the insurance industry and dedicated themselves to shifting the industry online and into the hands of the consumer. The company currently has a valuation of between $120-180 million.
Policygenius provides an online shop for various types of coverage, including life insurance, long-term disability, health, renters insurance, and pet insurance policies. Using its highly personalized Insurance Checkup, users can discover their coverage gaps and review solutions for their exact insurance needs. Policygenius also provides highly accurate quoting engines that offer side-by-side comparisons of tailored policies.
Top FinTech Company Stash began its journey as a micro-investing app, helping people invest wisely to build a safety net for their retirement, for the small fee of $1 per month. Now a fully-fledged challenger bank, Stash offers cash-back debit cards, regular accounts, and quick transfers. The company has a valuation of between $260 million and $390 million.
With an ambition to put an end to stock market FOMO (Fear Of Missing Out), Titan has incorporated an AI-based investment banker into a mobile app. The Titan application makes an assessment of your personal risk profile and then cross-checks it against information gleaned by scraping top hedge fund data, before drawing up a list of the top 20 stocks perfect for your investing style.
After compiling its recommendations on what you should invest in, the Titan app can then automatically buy and sell securities for you. In-app reports and analysis provide users with insights about the inner workings of the financial market.