The fifth edition of FinTechCity’s Fintech50 was announced today. The list is compiled by selected industry experts and celebrates innovation across a wide range of disruptive financial services companies.
The first list was published back in 2012, when fintech was a nascent industry that was just beginning to find its feet. Today, the Fintech50 contains a multitude of companies that are fast becoming household names.
This year’s featured startups were selected from a pool of over 1,500 fintech firms spread across Europe, but the list is still dominated by UK-based firms – 33 of the 50 firms selected are based here in the UK.
2 of the so-called “Challenger Banks”, Atom Bank and Monzo, have made the list – both have raised substantial funds from investors and are using APIs to provide their mostly millennial users with “next generation” services such as contactless payment, real-time balance checking and mobile banking. Both startups have secured full banking licences and are well on their way to challenging the traditional high street banking model.
Overseas money transfer firms are also included in the list; Revolut has recently waived fees on transactions of under £5k and are challenging bigger players such as Transferwise by introducing new services such as an Amazon style subscription service and ‘Turbo’ payments that allow users to move money faster for a small fee.
Azimo is another disruptive overseas transfer service that makes the list – Azimo’s latest rates can be found alongside top FCA Authorised and TransferWise, using The Money Cloud’s overseas transfer comparison widget.
Emerging blockchain digital currency provider Ethereum is included, although perhaps surprisingly there are few blockchain-based firms amongst the final 50.
Lending services are well represented, from Market Invoice, who recently secured a £45m lending facility from Banco BNI Europa, to Ratesetter, fresh form a £12m pound raise led by Woodford Investment Management.
Payments service PayKey, mortgage provider Trussle, open banking and compliance platform Railsbank, Insurtceh firm Cuvva, and crowdfunding platform Seedrs are notable inclusions, and the world of cyber security is also well represented, by Privitar, DarkTrace and Digital Shadows.
Insurtech firm Cuvva makes the list, as does Risk-as-a-Service platform OpenGamma. For the full list, click here.
Besides the Fintech 50, the panel also selected a “Hot Ten 2017” list of new startups to watch, including financial assistant Cleo, banking technology optimiser 10x, founded by ex-Barclays CEO Anthony Jenkins, who recently announced its first client as challenger bank Virgin Money, and data protection firm Post-Quantum.
It’s clearly an impressive list, as is the Fintech 50 – so who chose the winners?
The panel comprises a Who’s Who of famous names from the world of banking innovation, from Tim Grant, the founder of R3, the blockchain-based banking service that recently raised £107m, to Eileen Burbidge, Chair of Tech City and founder of VC investor Passion Capital, to Rory Picardo, Head of the Digital Economy Sector at the Department for International Trade, and many others besides.
A final reason to be cheerful? Nearly 20% of the list’s firms have female founders – not nearly enough but a steady improvement in a sector that has traditionally been led mostly by males.
Expect to see even more women, and perhaps a larger percentage of non-UK firms, feature in next year’s list.