The Hottest list of Top Fintech Startups London 2020 – Fintech companies UK
What is Fintech?
FinTech refers to both Financial technology and the general category composed of companies that create innovative technology to make financial services more efficient
What is a Fintech Company?
A Fintech Company is typically a new startup that is developing or utilising new technology to make the world of banking and financial transactions more efficient.
The UK capital is one of the largest financial hubs in the world and one sector that continues to grow powered by innovation, it’s fintech.
But who are the big players on the fintech scene?
In this list we cover the fintech brands you should be watching out for in 2020
This new app only challenger bank has made an impact on the UK financial scene since it received its banking licence in 2016 picking up no fewer than three gongs at the 2019 Smart Money People British Bank Awards including Best British Bank, Best Business Banking Provider and Best Current Account Provider.
Starling was the first brand in the UK to launch a mobile-only current account and also offers business accounts which is a great advantage as well as all the features you’d expect from a high street bank.
As a result of this Starling Bank is close to £1 billion and will start turning a profit this year. Like, actually making money as a startup.
“We, as usual, like to do things differently – the Starling way,” said Boden. “And what we’re doing now is expanding our product range and innovation hand in hand with growing our businesses, with a clear path to reaching profitability.”
Expect in 2020 to see Starling expand into Europe.
With its proprietary API, TrueLayer gives smaller startups access banking data while avoiding – like all APIs – the need to build, design and maintain their own systems.
“Open Banking is about much more than liberalizing the finance industry to increase competition and reduce costs,” said Cofounder and CEO of TrueLayer, Francesco Simoneschi. “It is also about raising security standards and protecting consumers and businesses. Online fraud ripples out and raises costs for everyone making card payments.”
TrueLayer has already launched a beta of its own Payments API.
This API enables businesses to start accepting cash via payments through Open Banking
Trussle as a result have signed big deals with Zopa, BitBond, ClearScore and Anorak, amongst many others.
With so many new and huge markets to enter and almost endless potential partners to partner with, TrueLayer has “true” (Ed: groan….) potential to hyper grow their revenues in 2020 as they fine tune their offer.
Nutmeg thinks it’s a fintech with a difference by not developing complex algorithms to make decisions on behalf of its customers and instead relies on human beings to perform this role.
But that hasn’t stopping Nutmeg enjoying significant growth with over 50,000 customers causing Banking (Ed: removed through fear…) Goldman Sachs to invest in a funding round of $58 million.
“Our customers are our greatest advocates and we wanted to give them an opportunity to invest in, as well as with, a business they’ve helped to make a success,”
Martin SteadNutmeg CEO and Director
Funding Circle is one of the largest UK peer-to-peer lenders and the first to go public with close to 50,000 small to medium-sized UK businesses borrowing a total of £5 billion on its platform.
Funding Circle has had some ups and downs since it went public but recently announced a record year so lets watch this space
“In the third quarter, loans under management reached £3.7 billion and projected returns for 2019 continued to show an improvement over recent years,”Co-founder and CEO
Fundamentally Funding Circle pairs up small and amateur lenders with small loan-takers.
Monese offers current accounts and money transfers to a ew generation of consumers and has a good reputation for its quick and simple application process.
In September 2019, Monese raised a gigantic $60 million in series B funding led by Kinnevik and others including PayPal so watch this space!
Monzo is probably the most known Fintech Startups London has produced recently
Winners of the Best Banking App gong at the Smart Money People awards and was at the time of press just behind Starling in terms of revenues.
Monzo entered the fray as a challenger bank scene in 2015 focussing on developing an intuitive banking experience for customers and were very much successful in this ambition and is now holding around $1.1 billion in deposits
“we’re literally the safest bank you could possibly imagine, because the money just sits in the central bank. It seems bizarre. Anyone from another bank who looks at our balance sheet just scratches their head. They can’t understand it. Unless the UK fails as a country, that money is safe.”CEO Tom Blomfield
Receipt Bank offers its clients cloud computing with AI and data handling thrown in which means Receipt Bank helps them saves time and effort by enabling the automatic compilation of accounts and expenses.
Through this process users are able to download spreadsheets and reports and connect up the platform with their existing software and has been embraced by clients.
The mortgage space and InsureTech and Lending in general is one that has traditionally found itself highly resistant to digital transformation.
Well that as we know is all changing and online broker Trussle is a high profile entry to our fintech startups London list as its mortgage comparison platform seems to be breaking out.
Trussle doees this by scanning different lenders to find customers the best mortgages available and then continuously monitors the market post-sale to help its clients identify and switch to better deals later.
How frigging cool is that!
Chatbots are massive and have never been easier to build thanks to the advances of both middleware and artificial intelligence software.
Enter Cleo, which is an AI chatbot that connects users Facebook accounts and helps them manage their finances better to track their expenditure and savings. And this process helps them save money and plan for the future better
Which we all need…
Using Curve, we can now access all our cards via a single card and PIN combo, doing away the need to have a wallet full of cards. You can even switch payment options after the payment has been made. How cool is that?
With such a great produce Curve could really be on the up curve in 2020….
Revolut is providing a digital alternative to traditional banking by using prepaid cards and peer-to-peer payments and supports several cryptocurrencies on its platform.
Revolut has had some brand and culture challenges reportedly but the company is now recording an average of 3.7 million monthly active users, and an average of 1.2+ million daily active users so things could very much work out for Revolut with years of growth ahead them highly likely.
Founded by Kristo Kaarmann, a former manager at Deloitte, and Taavet Hinrikus, an angel investor and former Strategy Director at Skype, Transferwise is no longer a Fintech spring chicken and possibly the most well known Fintech startup of recent years.
Transferwise broke into the marketing by allowing users to send money abroad with exchange rates eight times cheaper than most mainstream banks and also allowing users to send money easily, cheaply, safely, and quickly.
Recently Visa announced that TransferWise will begin offering its customers an additional capability to quickly and securely move money to debit cards in real-time, so watch this space as TransferWise continues to improve it’s offering and move increasingly into the mainstream
SumUp is mobile payments company that provides card readers to smaller businesses for them to use without a contract.
They take a 1.69% cut of payments made using the terminal but provide an easy and cost-effective way for businesses to make transactions.
The company recently bought Shoplo, a Poland-based multichannel eCommerce platform that allows small businesses to start selling online.
As part of SumUp’s expansion strategy, they also acquired Danish company Debitoor, an invoicing-software platform originally established for freelancers and SMEs.
In 2019 SumUp, announced that it has raised a from Bain Capital Credit, Goldman Sachs Private Capital, HPS Investment Partners, and TPG Sixth Street Partners.
SumUp plans to use this capital to accelerate its growth and acquire new merchants in its current and new markets across the globe.
The funds will be used to continue expanding SumUp’s product suite, both organically and through more acquisitions such as the acquisition of Debitoor, for accounting and Shoplo for ecommerce.
This little-known fintech was founded in 2009 under a different name before evolving into Checkout.com in 2012 and have since grown to a team of more than 300 employees in eight offices, expanding into the UAE in 2013, and the US in 2017.
Checkout.com enables companies to process and accept cross-border payments from credit and debit cards, online banking, Apple Pay and others such as Klarna – all with a single integration.
As a result Checkout is considered a direct rival to the huge Dutch payment titan Adyen, which is listed on the Amsterdam stock exchange.
Checkout.com provides online payment solutions for a number of growing businesses and has reported $46.8m in total revenues in 2017 according to their Companies House filings, a 56% up on the previous year.
The company’s clients include Samsung, TransferWise, Adidas and Virgin and was ranked 2nd place in Deloitte’s UK Technology Fast 50.