Top 10 Fintech Companies in America To Reach Over $ 1 Billion
Top 10 Fintech Companies in America with over 1 million of total funding.Gauge through the list below.Fintech, or Financial Technology, has become the world’s fastest growingsector in the last decade. Money transactions between businesses across theworld was never so easy before Fintech. It has made various financialprocesses easier while utilizing the technologies like mobile banking,investing and blockchain apps.According to the report, The global fintech market valued $127.66 billion in2018 and is expected to reach $309.98 billion in 2022 with an annual growthrate of 25%.With over thousands of fintech companies alone in the United States, it can beslightly challenging to find a professional and reliable finetech company totuomate & improve your company’s financial process. But, you don’t have toworry, we’ve done the job for you. Here are the top 10 Fintech Companies inAmerica that are helping different business sectors such as Banking, Payments,Insurance, Currency, and Exchange, etc
10 . Root
In the list of Fintech Companies in USA, Root secured its place because of itsworthy features. It provides car insurance to drivers in 30 U.S states withthe help of mobile apps. Root became the first insurance tech startup in theindustry to achieve unicorn status.Total Funding – $ 3.7 billionFintech, a combination of ‘Financial Technology’, is a huge term that includesvarious other sectors and industries such as education, retail banking,investment management, fundraising, and nonprofit to name a few. It also makesuse of cryptocurrencies such as bitcoin.13 Fintech Companies In Washington, D.C. To KnowAs the nation’s capital, Washington, D.C. lies at the heart of America’sfinancial sector. Being a hub of global culture and commerce, the city plays alarge role in international trading and banking, making it an unsurprisinghotspot for fintech activity. Given the continuous transformation of fintech,it’s no surprise that Washington is strengthening its financial sector.According to a Business Insider report, overall funding for fintech in 2018rose a staggering 82 percent from the year before — a clear indication offintech’s fierce economic potential. The impact of fintech on the globaleconomy cannot be understated, and for a city as internationally significantas Washington, the sector’s lucrativeness is doubly promising.While cities like San Francisco, New York and even Atlanta may be moretraditionally tied to the fintech space, Washington still holds its own in thefinancial races. Nestled within the city’s ecosystem of tech companies andstartups, there exists a growing community of fintech organizations disruptingthe financial industry in a variety of ways. These companies are focused on awide range of areas, from digital fundraising to student financing. ForWashington’s financial frontrunners, making an impact on the financial realmentails tackling issues that face people on a personal level, whether they’resmall business owners or investors. Take a look at these 13 fintech companiesin Washington, D.C. shifting the nation’s financial focus.
Fintech Companies in Washington, D.C. to Know
1. Pie Insurance 2. FINRA 3. GiveCampus 4. Onward Financial 5. Fannie Mae 6. Sou Sou 7. MPOWER Financing 8. WalletHub 9. KenshoKenshoFounded: 2013Focus: Artificial Intelligence + Data AnalysisWhat they do: Kensho is on a mission to demystify disorganized data sets,helping companies arrange and make sense of the information at their disposal.Through AI and machine learning technology, Kensho makes it easy to developclean data sets, identify people in documents, extract details from texts, andmore. No specific piece of data is inaccessible, thanks to the innovativecapabilities of AI solutions.Capital OneFounded: 1994Focus: Business BankingWhat they do: Located in nearby McLean, Virginia, Capital One specializes inconsumer and commercial lending, as well as deposit origination. In additionto consumer, small business and commercial deposits, the company also offersinstallment loans, home loans, healthcare financing and more. Alongside itscredit card offerings, Capital One operates a variety of financial productssuch as the financial wellness tool CreditWise and fraud prevention assistantEno.Pie InsuranceFounded: 2017Focus: Workers’ Compensation For Small BusinessesWhat they do: Pie Insurance is redefining the small business insurance arenawith its unique approach to workers’ compensation. The company aims to makeworker’s compensation easier, simpler and more transparent, enabling users toreceive an online quote in as little as three minutes. By offering greateraccess to workers’ compensation, Pie Insurance seeks to help small businessesmore easily protect their workforce, prevent significant financial loss andsecure stronger legal protection.DC TECH COMPANIES HIRING NOWTons of top companies in DC have open jobs and are looking for talent. Findout who’s hiring right now.GiveCampusFounded: 2014Focus: Digital Fundraising + Volunteer ManagementWhat they do: Launched by Kestrel Linder and Michael Kong, GiveCampus hasdeveloped a digital fundraising and volunteer platform in an effort to advancethe affordability and accessibility of education. The company’s platform isdesigned to increase engagement across a wide range of donor segments,enabling donors to easily give money through Apple Pay, recurring givingoptions and instant bank transfers. GiveCampus assists colleges, universitiesand K-12 schools raise more money during giving days, athletics fundraisingevents and more.Fannie MaeFounded: 1938Focus: Mortgage FinancingWhat they do: Fannie Mae is dedicated to creating opportunities for people tobuy, refinance, or rent a home. The company provides access to affordablemortgage financing in all markets, offering homeowners stable mortgagepayments over the life of a loan. Additionally, Fannie Mae’s HomePath platformallows users to learn about services provided to maintain properties, andnegotiate and purchase foreclosed properties before they are made available toinvestors.GetUpsideFounded: 2016Focus: Commerce OptimizationWhat they do: GetUpside personalizes brick-and-mortar commerce in an effort tohelp people earn cash back and drive revenue at businesses. The companypartners with local businesses, providing consumers access to exclusive offersat their favorite stores, stack savings and spend cash back rewards. Byproviding consumers with personalized offers, GetUpside increases incrementaltransactions in real-time so businesses can generate profit on every singletransaction.MPOWER FinancingFounded: 2014Focus: International Student FinancingWhat they do: MPOWER Financing is dedicated to providing student loans andscholarships for international and DACA students. The company leverages itscross-border digital lending platform, big data and global infrastructure toset international students up for academic, professional and financialsuccess. MPOWER Financing also offers immigration and job search preparationservices.How fintech is being used to protect us onlineHackers Are Breaking Into CreditUnion Accounts. One Solution? Blockchain.FINRA
Fintech Statistics – Editor’s Choice
* A considerable chunk of incumbent financial institutions (88%) believes that part of their business will be lost to standalone fintech companies in the next five years. * Globally, fintech companies acquired $25.6 billion in investments in H1 2020. * Digital banking services are taking over: 46% of people exclusively use digital channels for their financial needs. * 77% of traditional financial institutions plan to increase their focus on innovations to boost customer retention. * The total transaction value of digital payments grew from $4.1 trillion in 2019 to $5.2 trillion in 2020. * More than a third of fintech industry deals are made outside the US, the UK, and China.
A considerable chunk of incumbent financial institutions (88%) believes
that part of their business will be lost to standalone fintech companies inthe next five years.(PWC)At a time when new fintech trends are emerging in the industry and asinnovative technologies become the norm, established financial giants have adecision to make: stubbornly ignore the obvious or adopt, adapt, and improve.They know it’s coming, too; 88% of global finance leaders see new technologyas a threat to their existing business model. Moreover, 81% of banking CEOsare concerned about the speed of technological change.
Fintech companies acquired $25.6 billion globally in investments in H1
2020, according to the latest fintech industry report. The coronavirusoutbreak caused fintech VC funding to drop to $6.1 billion in Q1 of 2020.(KPMG, CB Insights, The Block)Global fintech mergers and acquisitions hit a record high of $97.3 billion in2019. Meanwhile, international tech giants such as Alibaba, Alphabet, Baidu,IBM, Microsoft, Apple, and Tencent pumped $3.5 billion into fintech deals,marking an increase in deals for a fifth straight year.In the same year cybersecurity-related investments increased to $646.2million, which is more than double year-over-year; investments incryptocurrency and blockchain dropped sharply to around $3.7 billion (versus$4.5 billion in 2018).Almost 2,700 fintech deals were made worldwide in 2019, compared to 1,221 in2020.As a result of the coronavirus outbreak, in Q1 of 2020, fintech investmentsdropped across all continents quarter-over-quarter, with the most significantdecrease recorded in Asia (69% drop). This was the worst Q1 for investmentssince 2017.
Fintech investment is expanding beyond the major markets, with 39% of
deals in the industry made outside of traditional hubs like the US, the UK,and China.(CB Insights)Fintech hubs are sprouting up all over the world and helping the rise of newmarkets. Globally, the number of fintech companies grew to 1,463, with 2,745unique investors. Throughout the period from 2016 until 2020, funding to SouthAmerica-based fintech companies grew at a 64% CAGR.
Two years ago, Chinese payment service Ant Financial had the biggest
round of investments in history, with $14 billion raised.(Reuters)This wasn’t just a record for fintech but investment history as a whole. Ofthis amount, $10 billion came in dollars, while the rest was invested inChinese yuan.The platform provides digital payment services for almost two billion people.It spun off from the eCommerce platform Alibaba before its listing in 2004.Millennial fintech app statistics show China and many other societies aregetting closer to becoming completely cashless as online native generationsmature.
As of January 2021, there are 79 unicorn fintech companies around the
world.(CB Insights)A unicorn company is a private company with a valuation of over $1 billion.Variants include decacorns, valued at over $10 billion, and hectors, valued atover $100 billion. As of the beginning of 2021, there are more than 500unicorn startups with the cumulative value of $1,780 billion. When it comes tofintech unicorns, statistics show that six new companies reached thisprestigious goal in January 2021.
San Francisco-based Stripe, worth $35 billion, is perched atop the list
of the largest financial technology companies in America.(Forbes)Founded in 2011, Stripe started out as a payment-processing service for smallbusinesses. Now, the company’s clients include the likes of Facebook andAmazon. With these big names on board, Stripe’s value has skyrocketed to $35billion.That’s 3.5 times the value of the second-largest company, Ripple, a paymentprotocol and exchange network provider valued at $10 billion.
The total transaction value of digital payments grew from $4.1 trillion
in 2019 to $5.2 trillion in 2020.(Statista)Digital payments are, without a doubt, the main driving force of the fintechsector. With a 12.8% projected CAGR from 2019 to 2023, the total value oftransactions is expected to reach $6.7 trillion by 2023.
Chatbots will save banks $7.3 billion by 2023.
(Juniper Research)That’s a 3,400% increase compared to the figure of $209 million in 2019.Chatting to a robot is much easier than chatting to a human for everyoneinvolved.It turns out many customers prefer to chat with automated customer serviceoperators, while banks appreciate the fact that they don’t ask for a salaryand never take cigarette breaks.As natural language processing advances, artificial intelligence is becomingincreasingly important for fintech in the US.
Artificial intelligence will save the insurance industry nearly $1.3
billion by 2023.(Juniper Research)There’s a lot of talk about the disruptive nature of fintech. Artificialintelligence plays a big role in that. In the insurance industry, computerscan automate post-incident data collection, analyze photos of accident scenes,and perform many other functions that reduce the time and money required forinsurers to settle claims.The industry is expected to save $1.3 billion by 2023.
Insurance fintech companies raised about $3.8 billion worth of
investments in 2020, the largest amount in at least five years.(S&P Global)Of the two main business models – digital agencies and full-stack companies -the latter has received more funding, with nine companies raising more than abillion dollars combined. This is understandable, seeing as digital agenciessell policies but do not underwrite them.Full-stack companies, on the other hand, are responsible for distributing,underwriting, and servicing their policies.