During these tough economic times, many financial innovations were born as the crisis demanded shifts in current business strategies and consumer journeys. Although most of them haven’t become immune to the political, social, and economic turmoil caused by the COVID Recession, they are definitely ushering in the next generation of banking products — more inclusive, secure, and adjusted for modern lifestyles.
From blockchain ledgers for open banking and financial inclusion, artificial intelligence algorithms, biometric verification, and voice-driven interfaces to big data analytics to machine learning — fintech firms are using powerful technologies to make financial services digital, accessible, and affordable for a greater number of individuals and businesses. These fintech companies and startups have earned a spot on this list due to their impressive technology and socially conscious approaches to finance.
Lemonade is a fintech company specializing in innovative insurance services powered by artificial intelligence, fintech apps, and chatbots. Born back in 2015 in New York, this fintech solution is still impressive, fast-evolving, and actual for a modern human. The company sells affordable insurance for homeowners, renters, and pet owners. The users can be insured in 90 seconds and have their claim reviewed and paid within 3 minutes. It’s the first insurance service provider working at a “light” speed.
The main difference of Lemonade’s application is the capability to share unclaimed money with any non-profit organization you choose. It’s now one of the most impactful fintech companies delivering insurance services in a responsible and sustainable way.
Koyo is a London-based fintech startup that allows users to take up to £5000 fast loans and pay them off within the next 36 months. In 2019, it raised $4.9M in equity and debt to use open banking to offer loans to people with ‘thin’ credit files. Its target audience comprises social groups that struggle with temporary financial difficulties and need to get money as soon as possible. Koyo works as a simple website with a loan calculator that displays final rates, Representative APR, total repayable, and total interest. Its hallmark is the opportunity to make seamless transactions with almost all UK banks without affecting the lenders’ credit score.
Among other benefits, Koyo works at high speed compared to other loan servicers. You need only 3 minutes to apply and 1 business day to wait for the decision. The social purpose of this fintech solution is obvious, and it’s to support people that have got into financial struggles during crisis life situations and overall challenging times like the current economic downturn.
Bambu is a fast-growing B2B fintech company located in Singapore. In 2019, Bambu raised US$10 million in a series B round co-led by Franklin Templeton and Peak6 Strategic Capital. It is a multipurpose financial SaaS solution that targets digital banks, asset managers, and insurance companies. Whether you’re creating a Robo-advisor for millennials or a tool for your financial advisors, Bambu can help go through digital transformation more smoothly and provide better experiences for online customers. It allows financial organizations to build fintech applications without coding, optimize financial software performance, and use white-label products to decrease deployment time.
From ready-to-go Robo-advisors to financial consulting tools to customized digital solutions, Bambu’s proprietary software provides wealth management consultants and financial companies with innovative ways to drive success for their clients.
TaxFix raised $65M last year. This company helps people to cope with the tax-related hassle and get their tax returns in 22 minutes. It is a fintech startup founded in Berlin that operates as an automated tax filing and refunds platform. You don’t need any special learnings to reimburse taxes using TaxFix. It’s one of the best fintech startups on the list demonstrating a great model that has shown to be effective for users with over 2 million mobile app downloads so far. TaxFix is now available only in Germany. However, the startup is planning to extend to Italy and France in the near future.
Digital transformation has been significantly accelerated by the recent COVID lockdown. Although it has brought economic challenges, it also triggered the boom in digital disruptions, including those in the financial sector. Today, businesses and individuals are more willing to adopt fintech innovations. In these conditions, online banks, personal financial management platforms, digital loans, fintech mobile applications, and other fintech startups are gaining popularity.
The five future-thinking companies mentioned above are now actively working on financial innovations. They are on track to bring the existing financial system to the next level of accessibility and inclusion. Driven by modern technology and social good, they all are united by a single mission — rethink current financial consumer journeys for higher convenience and sustainability.
Read more about fintech here: