This is the first post in a two-part blog series titled 15 fintech companies to watch in 2020.
Fintech, as many of you know, is short for financial technology. According to a Forbes post that we recently summarized called Fintech: The Fourth Platform, the term fintech has thus far meant taking a well-known financial product and making it more digitally accessible by building software around it.
However, as Matthew Harris explained in his two-part articles, fintech is set to go far beyond just improving existing products and services in finance. He believes that fintech will join the likes of the internet, cloud, and mobile to innovate and found entirely new products and services. This will change everything from the way we bank to the ways in which we value and view money. This major shift to fintech as ‘the fourth platform’ in the tech stack could create $3.6 trillion of value.
Here are the first seven of 15 fintech companies to watch out for in 2020—and the ones that we believe are paving the way for an entirely new financial industry in the future.
London-based tech unicorn Revolut launched in July 2015 and is now one of the world’s fastest-growing bank account providers. Revolut is a digital banking alternative for instant payment notifications and fee-free international money transfers and spending. It has more than 8 million customers worldwide (albeit mostly in Europe) and has processed over 350 million international transactions totalling more than £40 billion. The financial app and debit card operator is a privately held company with over $331.63 million in funding.
The end of 2019 saw the beginning of Revolut’s U.S. rollout with Mastercard as a partner. Revolut is also set to come to Canada in 2020 and continue providing international fee-free debit cards to European customers with Mastercard.
PayBright was named Canada’s
Plooto is a Toronto-based startup that is helping put the city among the fastest-growing tech markets in the world. It is a payment management platform that allows Canadian and U.S. businesses to send and collect payments and manage invoices internationally. The Digital Finance Institute named Plooto (as well as Mylo, PayBright, Flinks and Borrowell included in today’s post) as some of Canada’s top 50
San Francisco-based fintech company, Chime, is now considered the leader in the U.S. challenger banking segment. It is part of a new kind of mobile and digital-only banks and is one of the fastest-growing bank accounts in the U.S. Chime members receive a Chime debit card, spending and savings accounts, and an app that keeps their financials in check. It was valued in December 2019 at $5.8 billion, after raising $500 million in funding, the largest investment in a digital bank since NuBank raised $400 million.
Stay tuned until next week for Part II of 15 fintechs to watch in 2020.