Fintech startups are disrupting the banking industry at an incredible pace. New business models are emerging to offer faster, cheaper and more personalized services to customers. Here are 8 promising fintech startup ideas that could reshape how we bank.
The rise of digital banks is enabling new players to offer banking services without physical branch networks. Chime, N26 and Monzo have built mobile-first banking platforms with low fees and slick apps. By partnering with traditional banks, they can provide insured accounts and debit cards to customers.
Automated wealth management platforms are using algorithms to offer low-cost investment advice. Betterment and Wealthfront have attracted billions in assets by providing diversified, low-fee investment portfolios tailored to individual goals.
Student loan refinancing startups are helping borrowers lower interest rates on their student debts. Companies like SoFi, CommonBond and Earnest are using technology to quickly preapprove borrowers and refinance loans at lower rates.
Personal finance apps are giving people a better view into their financial lives. Mint, Credit Karma and NerdWallet help users track accounts, monitor budgets, check credit scores and find savings all in one place.
Small business lending marketplaces are using technology to evaluate loan applications and match SMEs with alternative lenders. OnDeck, Kabbage and Funding Circle have funded over $10 billion in small business loans globally.
Digital payment startups are enabling new ways to transfer and receive money. Venmo, PayPal, Square Cash and TransferWise have built peer-to-peer payment networks that make it easy to split bills or send money overseas.
Online mortgage lenders are streamlining the home loan process. Companies like Rocket Mortgage, LoanDepot and SoFi are enabling homebuyers to apply for mortgages on their phones and close loans in days rather than weeks.
Insurtech startups are applying technology to improve the insurance industry. Lemonade, Root and Metromile are using artificial intelligence to offer cheaper, faster and more tailored coverage for homeowners, auto owners and renters.