5 Most Exciting Fintechs…

FinTechs (Financial Technology Companies) are bringing widespread digital disruption to the financial market and the UK is feeling the pressure more than most.

“Global investment in financial technology tripled in 14/15 to hit $12.2 billion… with Europe being the fastest growing region in the world”

 

These are what I believe to be the 5 most exciting Fintechs right now…

 

 

  1. Robinhood – Commission-free, mobile-first stock brokerage – Est.2013

Robinhood is a new way to invest in the stock market. They believe that everyone should have access to the financial markets and are on a mission to inspire a new generation of investors. Robinhood is a stock brokerage that allows customers to buy and sell US stocks and ETFs with zero commission. They cut out the fat that makes other brokerages costly — hundreds of storefront locations and manual account management.

Q. So if they don’t charge commission how do they make their money?
A. Robinhood says:

“we make money from… collecting interest from customers who choose to upgrade to a margin account and accruing interest from customers’ un-invested cash balances. It is important to note that our customers are not charged”

In summary: This seems like great news for investors who currently pay in the region of .5% per annum.

2. eToro – Lets you follow top traders and automatically copy the trades they make – Est.2006

 

eToro is the world’s leading social investment network, with more than 5 million registered users in over 140 countries. eToro leads the social trading revolution through its community powered network, which enables every investor to see, follow and automatically copy the actions of other investors in real time. eToro’s mission is to revolutionize the way people access the financial markets and make their trading experience more social, simple, enjoyable and transparent. By harnessing the wisdom of the crowd, every member of eToro’s social trading network benefits from accelerated information exchange, knowledge sharing and the ability to quickly identify the best investment opportunities.

 

In summary: Another excellent tech for investors, cutting down on costly management services and they are obviously doing well with their headquarters in Canary Wharf!

 

 

3. iZettle – Accept credit card payments with your iPhone, iPad or Android – Est.2010

iZettle is a mobile payment solution that lets anyone accept credit cards with their smartphone or tablet. With iZettle, anyone selling anything face to face can use smartphones and tablets to accept credit card payments and manage their business – and for a fraction of the cost of traditional systems. iZettle works to help merchants start, run and improve their business using nothing but a free app with business analytics and insights, and a mobile card reader, that transforms smartphones and tablets into cash registers. The company offers everything from credit card readers to complete point of sale solutions and free sales overview tools.
In summary: We all have that friend that owes us money but never carries cash – iZettle is the answer (It might also help small businesses).

4. Personal Capital – Understand, manage, and grow your net worth – Est.2009

Personal Capital is the smart way for people to understand, manage and grow their net worth, with award-winning online tools providing total transparency into investment accounts. Certified Personal Capital advisors use information to provide accurate recommendations to clients, improving efficiency and supporting money management principles that lead to the best outcomes possible. A pioneer in digital financial advisory services, Personal Capital is backed by leading Silicon Valley venture capital firms and financial institutions. With nearly $2 billion in assets under management, Personal Capital helps clients feel more confident about their financial future. The free app is available for iPhone, iPad and Android.
In summary: This is the app that helps you pull all of your finances together and ensures they are all working in the same direction.

 

5. Coinify – Online Payment with Bitcoin – Est.2014

Coinify drives mainstream adoption of digital currencies, such as Bitcoin, for merchants and consumers. Merchants benefit from Coinify’s payment service, enabling free, instant settlements in a fraud-free and chargeback-free blockchain payment environment, giving consumers access to secure, one-click payments that reveal no sensitive information.
In summary: With the popularity of Crypto Currencies like BitCoin gaining momentum this could really speed up mainstream adoption.

The big question remains… so how do the banks beat these Fintechs?Ultimately the view on how banks can beat these Fintechs differ but the two most widely held views are probably (1) Establishing an innovation lab – normally in Silicon Valley or (2) Buy them out.

So those are my 5 most exciting Fintechs, what are yours?