The Fintech Companies That are Set to Have a Massive Impact on the Business of Finance in
Technology has changed many modern processes, with one of the most far-reaching impacts caused by financial technology. Known as fintech, financial technologies are financial institutions like nothing before.
You’ve likely head of some fintech companies, with the likes of PayPal being one of the more well-known fintech firms. Fintech is currently changing how consumers and businesses conduct various processes, from organisations making cross border payments to people applying for mortgages.
In fact, many fintech companies now offer alternatives to traditional lending, with various companies allowing borrowers to apply for mortgages, refinancing, and personal loans without ever stepping into a bank. Companies like Rightswitch have setup comparison tools that available exclusively online and compare the mortgage market.
This is already causing major waves in the financial world and the growth of fintech shows no signs of stopping. Here are some of the top fintech companies that are set to have a massive impact on the modern mortgage market:
Currently one of the largest fintech firms in the United States with a market value of $22 billion, Stripe specialises in technology payment systems, going head-to-head with fellow fintech giant PayPal.
Providing both businesses and individuals with online payment services, Stripe has tech behemoths Amazon and Microsoft amongst its clientele.
The company looks set to cause further disruption in the business of finance (namely for traditional organisations like banks) as it rolls out new products like credit card issuing tech, POS software, and a new billing system for subscription-based companies.
One of the first digital only mortgage service providers, Better Mortgage lets you know what type of finances are available in minutes using your income and credit score. After uploading required documents, the company can provide a pre-approval letter within 24-hours, giving mortgage buyers a more competitive edge against cash buyers.
The company itself does not pay for the loan, instead matching buyers and institutions looking to buy the loan as an investment opportunity.
A new fintech start-up that is aiming to be the first fully digital mortgage lender in the UK. This company looks set to have a huge impact on the UK mortgage market, which at this point has few e alternatives beyond traditional lenders.
The future of the fintech market in the UK likely hinges on the success – or lack thereof – of this new start-up.
An online fintech lender, Avant offers personal loans ranging from a few thousand dollars to tens of thousands of dollars. The company aims to streamline the entire loan application process, and in doing so has great potential to disrupt traditional lending organisations.
For instance, the online application process takes three steps, requires minimal information, and doesn’t impact your credit score. Successful applications can be secured within the same day, with more than 80,000 customers already receiving loans from the fintech firm.
A smartphone application that aims to make stock investments cheaper and easier, Robinhood allows users to invest in publicly traded company without paying any commission.
The fintech app is also branching out into other areas of finance, now offering cryptocurrency trading and ETs, while being set to introduce cash management services in the near future.
With over 6 million users and a reported market value of over $5 billion, Robinhood is a great example of how financial technology is spreading into every financial sector, often to the advantage of the consumer!
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