Top 10 Fintech Companies In The World And How To Benefit From Their Activities
Fintech is an amalgamation of finance and technology, and it is fast gaining ground in the future of the financial world. Fintech is the combination of the word, “Financial Technology”. It is used to define a new tech that strives to enhance and automate the delivery of financial operations. It is used to help business owners and companies to manage their financial operations and processes better, through the use of specialized software and algorithms.
According to Pierre Gramegna, the Minister of Finance in Luxembourg, he said, ” FinTech is not only an enabler but the driving engine.” When Fintech first arrived in the 21st century, it only applied to the technology used at the back-end systems of established financial institutions. But since then, there has been a change to more consumer-oriented services and hence, a more consumer-oriented definition. Fintech now involves different sectors such as retail banking, education, investment management, among others.
Fintech is also used in the use and development of cryptocurrencies, such as bitcoin. This may be said to be the most important use of fintech, as more money lies in the traditional global banking industry. Fintech companies use technology to lower costs, make processes simpler, and broaden the market for their services. Their aim is to modify health insurance and small business accounting.
Below are the top 10 Fintech companies in the world.
This company provides businesses with just one platform to receive payments via any sales medium anywhere in the world. It is based in the Netherlands and was founded in 2006. This company operates more than 4,500 businesses, processing mobile, online, and in-store payments. It keeps growing and increasing at a fast pace, and has a remarkable list of customers, which includes Uber, Facebook, Netflix, Spotify, Burberry, Microsoft, Symantec, and L’Oreal. Adyen trades on the Euronext exchange.
Qudian is a China-based FinTech firm in the lending business. It operates as a micro-loan site, an installment payment site, and an investment management platform. The company has established partnerships with different e-commerce corporations, digital, and financial services in order to attract more customers. Qudian specializes in small loans to Chinese consumers, who have proven averse to credit cards. Earlier this year, 2020, it withdrew its recommendation for fiscal 2019, highlighting complications causes by a stricter regulatory environment and tougher consumer privacy rules.
Ant Financial is a China-based spin-off from the Alibaba Group (BABA), originated from Alipay. It was founded in 2014 and is the world’s leading third-party payment platform. It has been in use since 2004, and today, it runs Ant Fortune, Alipay, Ant Financial Cloud, and other financial services. Ant Financial and its associates offer services in wealth management, credit reporting, payments, private banking, and cloud computing. The business value was computed at $150 billion in 2018, and plans for an IPO in Hong Kong, mainland, and China, and is currently reviewing its activities in 2020.
SoFi was created by four students who met at Stanford Graduate School of Business in 2011. The company calls itself, “a new kind of finance company”. It takes a non-traditional strategy for lending and wealth management. The company currently offers student loan refinancing, personal loans, mortgage loans, wealth management, and life insurance. It has grown to become a multi-billion-dollar company and has more than $19 billion of funded loans and more than 900,000 members. It recently introduced a new product called Stock Bits, where consumers can buy and sell fractional shares of 50 popular stocks, for as small as $1. It is expected to have an IPO someday in the future.
Xero was founded in 2006 in New Zealand and has become one of the fastest-growing ” software as a service” companies. The activities of the company include automated daily bank feeds, invoices, creditors, debtors, full accrual accounting system with a cashbook, sales tax, and reporting. The company creates an easy-to-use online accounting software for small businesses, and as at the end of 2019, it had more than 1.8 million subscribers. In 2014 and 2015, Xero was recognized by Forbes as one of the World’s most innovative growth companies.
Avant was founded in 2012. It is a privately owned, Chicago based online lending platform. The goal of the company is to reduce the costs and complications involved in borrowing money for middle-income earners. It uses proprietary software to tax the creditworthiness of customers for unsecured private loans and credit cards, with an interest rate of 10% to 36%. As of May 2019, the company had more than 800,000 customers and had loaned out $6.5 billion.
ZhongAn Online P&C Insurance Company, Limited, was founded in 2013 by Alibaba Executive Chairman, Jack Ma Yun, Tencent Chairman, Pony Ma Huateng, and Ping An Insurance Group Co. of China Limited chairman, Peter Ma Mingzhe. The company is based in Shanghai headquarters and is an online-only insurance company. When the company was newly established, it attained 150 million clients in the first year and wrote 630 million insurance policies. The company went public on the Hong Kong Stock Exchange in mid-2017.
Oscar is a health insurance company that aims to boost the American healthcare system with the use of information technology. It was founded in 2013 and aims to deliver a more transparent and faster medical request process at a reasonable price. Prominent contributors for Oscar include Google Capital, Fidelity, and Khosla Ventures. Khosla Ventures describes Oscar as, “a new kind of heth insurance company that is using technology to make insurance simple, intuitive, and human.”
Lufax was founded in 2011 in Shanghai, owned by Ping An Group, an insurance company. It is mainly a peer-to-peer lending company, that matches businesses and individuals with investors for a price. Lufax has a strong presence in China. But, in 2019, the company was recorded to be deducting from the loan industry due to recent regulatory barriers inflicted by the Chinese government. Rather, it was utilizing its skill in big data and information technologies to concentrate on wealth management, consulting services, and risk management.
Klarna is a Swedish company founded in 2005. It is one of Europe’s largest banks, but from customer’s opinions, it seems to be a shopping app. Its users are calculated to be about 85 million in 17 countries and are in business with 205,000 dealers. Klarna uses its proprietary software to assess a customer at the point of purchase, rather than offering a line of credit like other conventional lenders. The company generates income by charging merchants a small marketing fee, and also by charging customers who choose their installment payment plan. As of May 2020, Klarna was in the process of an IPO.
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