Over the past decade, FinTech has gone from a small niche to an enormous sector of the technology industry. Here are the 5 biggest FinTech companies in America.
FinTech companies in America
As of 2014, only 14 percent of people in the U.S. knew about FinTech companies in America. Yet, the transaction value of the FinTech market in the country could be worth $2 trillion by 2021.
FinTech is a union between technology and financial activities. It gives customers access to financial services and products. You can see this in banking, insurance, cryptocurrency, robo-advisories, and cybersecurity.
These companies have gone from being startups to becoming large and influential organizations. Keep reading to discover the largest FinTech companies in America.
Success Stories of FinTech Companies in America
Currently, financial institutions are under pressure to innovate to compete with FinTech companies. That’s why 77 percent of them are increasing their internal efforts.
Others think a better approach is to outsource their software development efforts. This saves them from employee training costs. It also creates more time for the company to focus on other core tasks.
Nevertheless, FinTech companies in America continue impacting the financial industry. Here are five of the largest companies and their keys to success:
Stripe is a payment processing service. It allows companies to accept different credit cards and other payment services. Patrick and Jack Collison started the company to resolve online payment issues.
They have succeeded due to the solutions their technology provides. It also helps that their funding was as high as $450 million.
Avant’s founders include Al Goldstein, John Sun, and Paul Zhang. It is an online lending company. Its start was very modest with seed funding of $1million. 2 years later, their financing is as high as $400 million.
Their success comes from their great customer service and quality personal loan services. They generate a lot of money from their competitive interest rates. Its technology analyzes data to determine the loan amount people will get.
SoFi, or Social Finance, is another lending firm. It provides refinancing for student loans. It offers mortgages, personal loans, and wealth management services. Its founders are Mike Cagney, Dan Macklin, James Finnigan, and Ian Brady.
Their system analyzes financial history, income and expenses, education, and career experience. These factors determine how much they’ll lend you. They don’t focus as much on credit scores as other financial institutions.
Aside from their great services, their success comes from about $2 billion in funding.
This company created a smartphone app to allow people to buy and trade stocks. Its key feature is the zero commissions on transactions. The founders include Baiju Bhatt and Vladimir Tenev.
RobinHood provides a secure platform with fast trades and real-time market data. These features and the zero commissions make it appealing to traders and students.
Thus far, the company’s total funding is at about $176 million.
5. Credit Karma
Last, we have the personal finance company, Credit Karma. The founders are Kenneth Lin, Nichole Mustard, and Ryan Graciano. They provide free credit scores.
You can check your bank accounts and get reports. The company monitors your account and gives tips on improving your credit score. Their funding amount is at about $368 million.
Learn More About Software Development
Other FinTech companies in America are having a big impact on the financial industry. The ones above grew by offering great services and sourcing strategic funding.
Getting a worthwhile and scalable FinTech idea is not easy. If you are great at finance, it’s better to outsource the technological side to the experts.
Contact us to learn more about software development.