Top Fintech Companies and Startups to Watch in 2020

Aug 11, 2020

Top Fintech companies and startups 2020

Have a question?

The accelerated pace of digital transformation is pushing many businesses to adopt fintech solutions. Advanced online banking systems, wealth management services, digital loans, fintech mobile apps, and other fintech startups are gaining traction. Last year, the global investment in the fintech sector reached $33 billion. In 2020, despite the overall economic downturn, positive fintech growth tendencies remain in place. In particular, HackerRank shows a 39% increase in hiring among fintech companies, including PayPal, Goldman Sachs, and Morgan Stanley.

At the same time, emerging financial technologies, global regulatory complexity, and increased cyber threats remain among the key challenges listed by financial institutions. This results in the growing demand for fintech startups that can supply financial organizations with reliable and secure fintech apps. This also increases the role of outsourcing software development as an alternative to scarce local markets that cannot provide the necessary workforce.

Want to know what fintech startups run the financial services industry in 2020? To get detailed insight into top fintech startups, read our article about:

Top Fintech Startups in 2020: Industry, Location, and What They Do

In this overview of top fintech startups, we have relied on the annual list of 50 fintech companies compiled by Forbes and our independent research. According to the business magazine, this year has seen an unprecedented increase in the number of first-timers. These companies that had never been included in the list of top fintech startups until their recent breakthrough. The number of fintech startups with over $2 billion worth also excels the 2019’s results.

Here are some of the budding stars that reshape fintech software development in 2020.

Chime

chime banking

Industry

Personal finances

Location

San Francisco, CA, US

Services

This fintech startup is a neobank company that unlike traditional banks, doesn’t have physical branches and charges no monthly or overdraft fees. All the services are provided through the website or customer fintech apps available for iOS and Android users. The bank issues Visa debit cards without minimum balance, automatically rounds up purchases, supports early payments and a range of other fintech app features. Based on the latest evaluation, the worth of the fintech startup reaches $5.8 billion with around $808 million raised in Series A, B, C, D, and E funding rounds.

Koyo

Koyo personal loans

Industry

Personal loans

Location

London, UK

Services

Koyo enables customers to take up to £5000 quick loans and pay them off within the next 36 months. The main target audience of this fintech solution is people suffering from temporary financial problems who need to find money as soon as possible. Koyo operates as a simple website with a loan calculator that shows the final rates, including Representative APR, total repayable, and total interest. Among other benefits, the fintech startup supports transactions with all the core British banks and doesn’t affect the credit score of lenders. It takes just 3 minutes to apply and 1 business day to find out the decision. Whereas end-users like this regulatory compliant shortcut to get a loan, investors bet on its profitability with $4.9 raised in the last debt and equity funding.

Brex

Brex B2B lending expense management

Industry

B2B lending and expense management

Location

San Francisco, CA, US

Services

Brex is a fintech startup launched for technology, e-commerce, and life science companies. This service provides entrepreneurs with corporate credit cards and the fintech solution for cash flow and expense management. By opening a Brex account, businesses can enjoy fast payment, free wire transfers, 10-20x higher limits, and all corporate transactions recorded in one place. It also supports the Rewards program that offers bonuses on rideshare, travel, recurring software, restaurants, and other services that are commonly used by startup employees. In May, the fintech startup with the current value of $2.6 billion raised another $150 million in series C funding.

Lemonade

Lemonade insurance

Industry

Insurance

Location

New York, NY, US

Services

Lemonade is one of the fintech firms that leverage AI, fintech apps, and chatbots to digitize insurance services. The fintech startup sells affordable insurance for homeowners, renters, and pet owners covering the main market needs. Users can get insured within 90 seconds and have their claim reviewed and paid in 3 minutes. Such a lighting speed has become possible thanks to artificial intelligence that handles user requests filed through the website or fintech mobile apps. The hallmark of Lemonade’s fintech app is the possibility to share the unclaimed money with any non-profit chosen. This company on our top fintech startups list is already bringing $115 million annual revenue with half a million customers.

Bambu

Bambu B2B wealth management

Industry

B2B wealth management

Location

Singapore

Services

It’s one of the rapidly growing financial technology companies that provide B2B tech solutions for financial institutions. The main target audience of this startup comprises banks, asset managers, digital disruptors, insurance companies, and digital banking. Bambu is a multipurpose SaaS solution for deploying Robo-advisors and building financial consulting tools. It enables financial organizations to use one of the white-label products to reduce the time of deployment, build fintech apps without coding, and optimize the software development process. Thus, fintech firms can go through the digital transformation more smoothly and quickly implement innovative solutions to please their customers. So far, B2B Robo-advisors have obtained $3.4 million of funding.

Dave

Dave personal finances

Industry

Personal finances

Location

Los Angeles, CA, US

Services

Dave is an online banking platform available to IOS and Android users as a fintech mobile app. The fintech startup has no minimum balance, overdraft, or ATM fees across the network of 32,000 MoneyPass ATMs. Every account is protected with top-notch banking security and up to $250,000 FDIC-insurance. Besides, thanks to the partnership with LevelCredit, Dave’s fintech mobile app allows customers to build up their credit score. You can join it for only $1/month, like 7 million users that have already done that. The current funding of Dave reaches $76 million, which is a pretty promising result for the fintech startup.

Pleo

Pleo B2B mobile payments

Industry

B2B mobile payments

Location

Copenhagen, Denmark

Services

Pleo is another representative of B2B fintech companies on our list. It’s a business spending platform for all-size enterprises that want to provide their staff with smart company cards. Such an approach boosts team spirit by giving employees more freedom, simplifies corporate purchases, and enables businesses to optimize finance management. While users buy work-related things on-the-go and instantly report expenses, financial departments control the situation, set limits, and enjoy bank-level encryption security. The operation of Pleo relies on prepaid Mastercards and convenient IOS and Android fintech apps. In 2019, this fintech startup closed $56 million series B to get $78.8 million of investment in total.

Root Insurance

Rooot auto insurance

Industry

Auto insurance

Location

Columbus, OH, US

Services

This fintech startup offers a fintech mobile app that sets insurance rates based on monitoring 200+ driving variables. The better users drive, the more they save. All the insurance-related hassle is managed through the IOS or Android app, where drivers can file claims in just 3 minutes, manage their policy, utilize Roadside Assistance, participate in the referral program, and more. This turns the use of auto insurance services into a pleasant experience and brings the fintech startup $528 million investment. According to the latest estimate, the cost of Root Insurance exceeds $3.65 billion.

App Development Outsourcing for Financial Technology Companies

Despite the clear benefits of fintech solutions both to fintech companies and consumers, 57% of financial institutions call the rapid technology advancement the greatest source of business disruption. Fintech companies continuously compete for a qualified workforce, which is quite limited and very expensive in the US and Western European markets. This strains their resources and complicates the successful launch of a fintech startup.

Under such circumstances, fintech firms should look beyond the local resources and consider hiring a remote app development company. Outsourcing web and mobile app development services have several significant advantages compared to in-house engineering:

  • A remote app development company can either fully cover the software development lifecycle or back you up at any stage for extra scalability.
  • Fintech software development companies already have the relevant experience since they’ve designed and launched hundreds of fintech products.
  • Outsourcing fintech software development companies provide access to the international pool of developers and remote talents.
  • Fintech software development companies offer several models of cooperation: dedicated team, time & material, and fixed price. Therefore, they can tailor web and mobile app development services to the needs of any customer.
  • Cooperation with an outsourcing provider helps fintech firms avoid lengthy hiring and onboarding. Just decide how many tech experts are needed to complete your project and get the necessary specialists.

Leobit is a web and mobile app development company with a broad Microsoft, web, and mobile technology stack expertise committed to building secure and regulatory compliant software. Named TOP Ukrainian 2019 B2B development provider and TOP APAC Mobile application consulting company of 2020, Leobit has already delivered over 150 web & mobile apps and keeps working on new projects. We cooperate both with fintech startups that are just starting their way and fintech behemoths focused on innovations.

Want to build a fintech app or have a fintech startup idea? Contact us to discuss your needs.

Share on FacebookShare on LinkedInShare on Twitter