5 FinTech Startups Disrupting The Finance Industry
The five FinTech startups disrupting the finance industry are Robinhood, Marqeta, Currency Fair, Final, and Trulioo. This meteoric rise seems unstoppable because these startups are offering highly innovative solutions. These solutions solve persistent problems in areas such as online trading, secure payment processes, and anti-fraud measures. Investors have seen the problem-solving potential of these startups. That is why they are investing so much money in them. For example, did you know that the amount spent by investors in the FinTech industry in 2017 amounted to $17.4 billion? Learning about FinTech and the startups that drive it sheds light on why investors have so much confidence in this industry.
Robinhood is a stock brokerage app that facilitates the trading of shares. Interestingly, it does not charge any fees. You can find it on Android, Apple, and the Web. Robinhood offers trading services for Bitcoin and Ethereum in specific states. These states include California, Montana, and Wisconsin. Others with access to cryptocurrency services from Robinhood are Missouri, Massachusetts, and New Mexico. It is worth noting that Robinhood has a premium account. However, this version is not as popular as the free version is. The company makes money by relying on the interest that it collects from the cash that is in its users’ accounts. This interest is substantial because Robinhood has 3 million users worldwide. The company minimizes costs as well so that it can maximize its profits.
Marqeta is a payment-processing platform that helps you create and then manage company-funded cards. The first step is configuring the cards and then loading them onto the platform. Then you can handle them from there. For example, you can either set limitations for these cards or leave them as they are. It is worth noting that Marqeta accommodates physical and virtual credit cards. The physical cards reflect the client’s preferences. Marqeta does not operate on its own. Instead, it connects to various payment networks include Visa, MasterCard, and Discover. These networks enhance Marqeta’s affordability, effectiveness, and speed.
CurrencyFair is an online exchange marketplace founded in 2009, but it started its operations in 2010. Today, CurrencyFair has more than 100,000 users worldwide. It has its headquarters in Ireland, but with branches in the UK, Australia, and Poland.
The company deals with currency transactions exclusively facilitating transactions in eighteen currencies. CurrencyFair’s chief competitive advantage is that it offers fast, convenient, and affordable services. For example, did you know that sending money to your CurrencyFair account is free? However, international transfers attract a fee of £2.50. Did you also know that CurrencyFair completes these transfers within a maximum of five days? In most cases, the transfer is over within a day or two. Lastly, CurrencyFair is an ideal platform for people who want to try several Forex strategies in a low-cost environment.
Final is a credit card service that gives you a unique number for every credit card transaction. It will generate a new one if the current one has a problem. Final processes thousands of sales comfortably because it can create millions of unique numbers. The question is why this generation matters. Well, fraudsters stole over £1 billion from financial institutions in the UK in 2016. They took this money using credit and debit card information that they had stolen. Credit card cancellations nearly reached 5.3 million in the UK in the same year. Minimizing these cases of fraud is possible if you have total control over your cards. For example, having new numbers for every merchant makes it impossible for the fraudster to steal your card and then use it.
Trulioo is a Canadian Fintech firm located in Vancouver, British Columbia. Its primary service is identity verification for businesses and non-governmental organizations. This verification process relies on private and government databases. Tanis Jorge and Stephen Ufford founded Trulioo in 2011. The company received more than $2 million in 2012 from Blumberg Capital. Then it got $6 million from Tenfore Holdings in 2014.
Moreover, Trulioo raised $15 million from American Express Ventures in 2015. These investments prove that Trulioo is a sound investment and that is why investors are putting so much money into it. These investments are paying off in many ways. For example, Trulioo took over Global Data Company in 2014 at an undisclosed cost. Today, Trulioo helps you verify close to four billion people worldwide in over sixty countries.