PROMISING FINTECH COMPANIES IN THE US IN 2023

In 2023 the fintech domain will continue to grow, and the number of companies will grow. For the record, in 2022, the total number of startup fintech companies in the United States market alone amounted to 30,000, with approximately 105 unicorns among them.

So, the fintech market is highly competitive, and to survive in it, you have to keep an eye on the trends and the best financial technology companies. It’s not that hard since the rising fintech companies are a top-tier part of every discussion.

So, let’s get to know them!

WHAT ARE THE FINTECH COMPANIES?

The term “fintech” is a combination of “technology” and “finances”, and it stands for the technical solutions that automate, support, and enable financial operations in the digital environment. So, top fintech startups and established companies focus on creating technical solutions to provide businesses, individuals, and governments with finance-associated assistance.

Their financial services range from management software solutions to payment gateways or digital wallet development. Fin techs can be implemented in nearly every industry; eCommerce, eLearning, cloud-based marketplace, healthcare–any profitable business needs financial operations.

This is why fintech’s importance can’t be underestimated. With a huge focus shift in our lives toward the digital economy, financial technology has become more accessible to the general public.

So, now fintech’s top companies in the US provide services to cover traditional banking activities like investment, savings, credit risk management, mortgage, lending, and more.

MOST ATTRACTIVE FINTECH SECTORS FOR THE FINANCE TECH COMPANIES IN THE US

Crypto and DeFi are the new blacks in the fintech domain. In the first quarter of 2022, this sector alone raised more than $7 billion. And it rapidly grows; 2.4x compared to Q1 2021, which is much faster than any fintech segment. So, for top fintech companies and investors, crypto exchange, DeFi, DEX, ICO, NFT, peer-to-peer, and other blockchain-related products can be a gold mine in 2023. Being popular among various fintech top companies, crypto also shapes the US market.

The second most popular segment for investors, and, therefore, financial startups is challenger banks. With $2.2 billion in venture capital investment, this sector secured 15% growth from the 2021 average and steadily went forward. Among other successful sectors for new fintech startups are:

• Wealth management ($5.9b VC funding growth);
• Mortgages & lending ($5.9b VC funding growth);
• Green finance ($0.2b VC investment);
• Parametric insurance ($0.2b VC investment);
• Embedded finance ($1.1b VC investment).

Overall, the global and US fintech market is one of the most stable growing markets. Right now, for up-and-coming fintech companies, the market conditions are beyond attractive. In 2022 Q1, the early-stage funding for financial technology startups peaked at an all-time high of $6.1 billion.

The predictions are clear, and we’re sure that time will only solidify the stable position of financial technology and institutions on the global stage. Fintech is now everywhere; it speeds up traditional banking and changes the point of sale that we were used to, digitalizing it. However, if you’re planning to become a part of the scene this year, it’s important to look up to the best. So, let’s get to it!

10 PROMISING FINTECH COMPANIES IN THE USA IN 2023

Here’s a list of financial technology companies that successfully leverage the competition in the overcrowded market. They all have something in common; unique features, workflow approaches, or ideas capable of changing the world.

Any business can learn something new from these top fintech businesses, whether it’s an adoption of innovative technologies or a rethinking of old practices.

#1 Nibiru Chain

Located in: Palo Alto, California.

Nibiru Chain was founded in 2022 and has already made it to the list of the most promising crypto startups, according to Business Insider. The founders’ main idea is a community-owner DeFi hub capable of becoming a true technological innovation of the sector’s future.

Nibiru exists as a sovereign proof-of-stake blockchain and a member of the interconnected blockchain in the Cosmos Ecosystem. Their main goal seems seamless trading between 40 blockchains for their customer base.

Nibiru Chain is one of the most promising fintech startups with an $8.5 million total funding in the seed stage.

#2 SoFI

Located in: San Francisco, California

SoFi was founded in 2011 and is an American digital bank. It has around 4 million members and attracts customers with comfortable conditions for opening a bank account, accessible support, membership benefits, and gamification features such as bonus points.

SoFi mobile banking has many services, including personal loans, banking, credit score and insights, student loans and refinancing, mortgage loans, credit cards, insurance, financial planning for investors, and auto loan refinancing.

SoFi’s total assets are $9.18 billion; in 2021 the company made around $985 in revenue. According to CNN Business, SoFi stock price will reach a median target of $7.50 in the next 12 months. This is 40% higher than the previous price, so it’s safe to say that not only SoFi’s place on the market is secured, but the company evolves and reaches new heights each year. This is why it holds its place in the list of top fintech companies.

#3 Chipper Cash

Located in: San Francisco, California

Chipper Cash is a cash transfer company that mostly targets African countries. They provide users with the lowest cross-border rates and are available in 7 countries, including Ghana, Rwanda, Nigeria, Uganda, South Africa, the US, and the UK.

Now, over 5 million users prefer Chipper Cash, and their apps have over 4 stars rating on App Store and Google Play.

This company uses one of the best fintechs to cover the needs of its customer base. Overall, the startup is fastly growing, considering that it was founded only in 2018. Its value is approximately $2.2 billion, and it would be safe to call Chipper Cash a unicorn.

#4 Revel.xyz

Located in: Los Angeles, California

Revel is one more blockchain startup with a unique implementation of familiar ideas. The application allows users to post pictures, moments of their life, or art, turning them into digital assets. Then, users can proceed to trade those assets, mint, and gain revenue.

This platform enables anyone to turn their memories and mementos into digital currency. The application is seamless and intuitive, which attracts more investors to it. And overall, the simplicity of blockchain usage in Revel’s case is showing how far we’ve come in terms of the digital revolution. The startup makes the top fintechs 2022 their ultimate competitive advantage.

Today Revel is on the seed level and has around $15.6m in total funding. It is considered one of the leading fintech startups in the crypto sector by Crunchbase, despite being founded in 2022.

#5 Guaranteed Rate

Located in: Chicago, Illinois

As one of the top fintech companies in the world, according to The Financial Technology Report, Guaranteed Rate started its path back in 2000. They were recognized as one of the most successful private companies by Inc. Magazine, and their business rapidly upscaled with years.

Guaranteed Rate is a residential mortgage company. In 2013 they were named one of the fastest growing companies in Chicago, and by 2018 they already were the seventh largest retail mortgage provider in the country.

They have a smooth and fast payment processing, providing their customers with an opportunity to receive funding amounting to between $4,000 to $50,000 in ten minutes.

In 2020, Guaranteed Rate issued over 130 thousand mortgages with a total value of over $47 billion. Now, they have more than one focus, aiming at more financial services, going beyond mortgages. They have around 10,000 employees, and their funded volume reached $73 billion in 2020.

#6 TrueAccord

Located in: Lenexa, Texas

TrueAccord is a machine-learning debt collection company driven by a consumer-friendly experience. They provide end-to-end customization and flexible digital experience, leading them to a place in the list of the fintech top 50 companies, according to ExpodingTopics.

The company uses behavioral analytics and an omnichannel approach to collections, which raises its effectiveness and scalability.

Now, a startup founded in 2013 reached 287% of 5-year growth and worked with 20 million consumers. Their total funding amounted to $47.1 million over 8 rounds.

#7 Robinhood

Located in: Menlo Park, California

Robinhood is one of the top 50 fintech companies according to numerous resources. Due to its exploding popularity, the company rapidly evolves, adding new features to its functionality, Mainly, Robinhood provides no-commission stock and cryptocurrency trading. Now they added new, innovative ideas to their app. Using top fintech, the app allows many other features to give cryptocurrency.

The firm provides no-commission stocks, cryptos, and possible alternative trading. Robinhood offers a Cash Management account without fees and a 0.3% interest yield.

Furthermore, Robinhood provides several services that make it simple for companies to keep updated about their investments.

Now, the company has approximately $6.2 billion in funding and more than 80 investors, including Emergent Fidelity Technologies and Hedonova.

#8 M1 Finance

Located in: Chicago, Illinois

M1 Finance is a financial company that offers a vast array of services. They use robo-advisory technology to help users with investments, borrowing, and digital checking. M1 created a special program for investors; an Owners Rewards Card–a credit card for investors with up to 10% cashback.

As one of the best fintech startups, M1 has extra security measures to ensure that its customer’s data is safe. They are a member of the SIPC and utilize top-notch security technologies. This attitude got them as far as being recognized as one of the best robo-advisors by Money, and the best for sophisticated investors by Investopedia.

M1 Finance has rightfully secured its place among the best fintech companies with over $6 billion in total assets under management and $323.2 million in total funding.

#9 Coinbase

Founded in: San Francisco, California

Coinbase is a cryptocurrency platform with additional security measures and a remote-first approach. Although Coinbase doesn’t have a physical headquarters, the company is the largest cryptocurrency exchange in the United States. One of the best financial technology companies, Coinbase combines innovative technology with a unique approach to usual business; they have a simple but highly effective workflow. A user only has to create an account on the platform, link their bank account to it, and they are welcome to buy and sell on Coinbase.

Perfect for individual users, small businesses, or any other type of business, Coinbase allows people to trade, sell, earn, and invest in crypto. Overall, the company has more than 108 million users and $101 billion in total assets on the platform.

#10 Chime

Located in: San Francisco, California

This is one of the top financial technology companies in the US due to its easy and zero-free services. Chime is a neo bank that allows users to perform all the usual banking operations like issuing a debit or credit card, using fee-free ATMs, sending and receiving funds, as well as acquiring savings accounts.

Using fintech companies’ top means for security like FDIC insurance, Chime protects the funds of their customers. By being revolutionary with the usual financial operation, this firm is drastically changing the way top financial tech companies are seen by the general public. They enable easy and zero-fee operation, speeding up the industry’s evolution.

Today, Chime has around $2.3 billion in total funding, 4.8 stars on App Store (and their app is in the top-10 finance), and has been recognized as one of the most innovative startups in personal finance in 2022. So, it is one of the top fintech companies in the world with one of the most beneficial terms of use for individual users.

CONCLUSION

To build a successful business in the financial technology sector, a great idea is only a third of the path you’re meant to take. Grand research about your competitors and valuable additions to the initial concept follow.

As a business owner, you need to consider the niche you’re operating in and look up to the best of the best. The ultimate recipe for becoming a unicorn is to know what you want and analyze how others achieve it.

So, what are the best fintech companies? The answer is simple. They are founded by those who can rethink old ideas, disrupt the usual ways of doing things in finance, and replace traditional methods with innovative technologies.