Top Innovative and Growing Fintech Startups in New York
Still thinking about whether you should start your business in New York? Learn about these successful fintech startups in New York to clear all your doubts!
New York is one of the world's prominent technological development centers, and by far, it is the most influential city in the financial business niche. Fintech companies in USA are constantly trying to disrupt the industry with lots of mentorship programs and the influence of veteran fintech companies. Therefore, to understand the most modern and active fintech companies, our web design company in New York prepared some of the most famous leaders in the New York fintech week industry to watch.
Is NYC good for fintech startups?
Yes, NYC is a good place for fintech startups to launch their businesses as it is a powerful city. Numerous surveys and research papers have proven that NYC genuinely stands out as one of the most popular places where young entrepreneurs can freely open their startups. Its fast-paced and business-friendly environment makes it a critical worldwide destination. It features abundant finance choices, incubators, a multicultural workforce, and a technical infrastructure of the highest caliber.
30 Best Fintech Companies in New York
Addepar is a centralized platform that allows investors and their partners to maintain control over their principal assets in all currencies. Financial managers of all backgrounds have unprecedented insight into their finances, allowing them to securely transfer funds and share data with investors. Their history of dependability and success has earned them the trust of over 200 businesses and foundations across the United States. Over $550 billion in assets have been tracked since their launch.
Capco is an exciting company located inside the “big apple” city. It’s operating between the intersection of financial services and technology. The company supports clients through the process of adopting advanced technologies, guaranteeing that these solutions boost revenue and overall productivity. Capco's areas of expertise include IT infrastructure, data analysis, and income creation. As a result, businesses can rely on Capco to match their digital transformation activities with financial performance improvement objectives.
Novus is an intelligence and portfolio analytical platform for investors. Numerous leading hedge funds, pensions, and sovereign wealth funds use the platform to monitor their risks, performances, and attribution across aggregated and historical data sets. The company was created by a group of investors, data scientists, and engineers to establish a foundation that assists the world's leading investors to generate greater profits. Portfolio managers, investor relations teams, and operational teams utilize Novus ultimately use the platform to analyze and manage their risks and profits while reporting to their investors.
The platform of BlockFi offers investors unmatched capabilities inside the digital asset ecosystem. The organization is committed to bridging the gap between cryptocurrency and conventional financial and wealth management products. The BlockFi Interest Account (BIA) permits users to earn compound interest on the deposited asset type. Clients utilizing the BIA can receive compound interest on their Bitcoin, Ether, Litecoin, PAX Gold, USD Coin (USDC), Gemini Dollar (GUSD), and USDT (outside the U.S.) holdings, resulting in a significant increase in their balances over time.
The finTech industry concluded its $350 million Series D fundraising round, anchored by new investors, including Bain Capital Ventures, DST Global partners, Pomp Investments, and Tiger Global. The investment values the company at $3 billion. BlockFi is a rapidly expanding corporation. Since the end of 2019, its customer base has increased from 10,000 to over 225,000. Currently, monthly income surpasses $50 million, and the company has more than $15 billion in assets on its platform, with a losing record of zero percent throughout its loan portfolio since launch.
Chainalysis is a blockchain analysis startup that provides cryptocurrency investigation and compliance solutions to law enforcement agencies, government agencies, regulators, and enterprises worldwide. The company serves as a strategic partner to financial institutions, governments, and cryptocurrency businesses in more than 50 countries, providing data, investigation software, transaction monitoring solutions, Compliance, and expertise on sophisticated cryptocurrency crime and money laundering techniques, procedures, and tactics.
The company just disclosed $100 million in investment at an over $2 billion valuation. Chainalysis, backed by Benchmark and other prominent venture capital firms, increases trust in blockchains. The company has cooperated with numerous government and business customers and partners to make cryptocurrencies a respectable and trusted component of the global financial system.
Alloy operates a robust Identity Decisioning Platform that enables banks and fintech companies to automate the decision-making process, allowing them to spend more time working with valuable customers and less time combating fraud.
The platform operates on a single API that connects bank and fintech customers to the correct data to understand their customers' behaviors as soon as they are onboarded, resulting in increased conversions and decreased fraud while also easing onboarding.
SmartAsset enables users to make more informed financial decisions by facilitating their access to financial advisors and online tools that help them better comprehend their financial health. The platform's website provides many resources, including blogs, articles, and online calculators, allowing visitors to delve deeper into financial education and improve their economic well-being over time.
After decades of phone-based trading, MarketAxess has created a fully electronic marketplace that revolutionizes bond trading on the $100+ trillion credit market. Its developers are directly responsible for modernizing the trading platform and bringing the bond market into the 21st century, enabling more than 1,800 global clients to trade bonds and other fixed-income instruments across multiple time zones and regions more efficiently.
Contrary to most equity transactions, only 20 to 25 percent of corporate bond transactions are conducted electronically. The growth potential is enormous, and MarketAxess is at the forefront of using technological innovation to alter user behavior and transform the public markets entirely.
CB Insights utilizes software to mine data from various industries, including finance, to forecast technology trends and assist businesses with strategic financial planning. The startup enables economic development firms and investment banks to build target lists, identify growing industries, identify future clients, and predict emerging trends. CB Insights, supported by the National Science Foundation and venture capitalists, believes that decisions should be based on more than the "three Gs" (Google searches, gut instincts, and guys with MBAs).
Quovo is an end-to-end financial technology platform that equips advisors and professionals with data management and insights solutions, which are attractively delivered through the web. They consolidate financial accounts and enrich data with innovative proprietary technology to normalize, transform, and reconcile data from any source.
Their intelligent aggregation offers an immediate, robust analysis of investment data. View any statistic over any time frame for any portfolio in real-time. Even feed data effortlessly into complex simulations. As a result of having complete control over the data workflow, their technology can transform massive, complex data sets into several representations, transforming otherwise jumbled data into something attractive, accessible, and valuable.
With bank-level encryption and third-party security validation, Quovo guarantees the safety of your data. Their cloud-hosted technology transforms your browser or mobile device into a professional-grade application for data and insights.
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Even Financial is a B2B FinTech startup whose API service connects consumers to customized loan, savings, and credit card offerings. It bridges the gap between financial institutions and channel partners. It provides vital infrastructure for financial services and channel partners, connecting consumers to tailored solutions through a robust API.
According to business records, the company has raised capital above 50 million dollars. The acquisition of Birch accelerated the company's foray into credit cards. The company's infrastructure for financial services and channel partners has been shown to reduce acquisition costs, enhance monetization, monitor compliance, and deliver transparency at scale.
Is New York a Fintech Hub?
The New York City fintech ecosystem is growing fast and is increasingly attracting startup talent. Many of the Fortune 500 companies have created or relocated their fintech teams to New York, taking advantage of the city's leading role in financial technology. The major banks have also been making quite a few moves of their own as they start to shift more towards digital offerings and services - a good time to be a start-up in NYC!
Millennials favor the digital wealth manager Betterment. It is well-known for its "robot-advisor" - an algorithm that chooses investments and constructs diverse portfolios for its clients. The company was created in 2008 and provided only automated financial consulting services till 2017. Betterment expanded into human advisors two years ago and today employs 240 people. The organization manages roughly $16.4 billion in assets (as of April 2019). Betterment added 100,000 customers in 2018. It raised almost $275 million in total funding.
Better Mortgage - a digital market for residential mortgages. It is a marketplace that connects borrowers with institutional investors for conventional and jumbo loans with fixed and variable interest rates to finance single-family homes, townhouses, condominiums, and planned unit developments. Once the loan has been funded, the servicing of the loan is transferred to an investor. Also included are title and homeowner's insurance.
Northwestern Mutual provides consumers with underwriting services, insurance products, and other financial solutions. In addition, when clients have issues about achieving financial stability, they can consult with Northwestern Mutual's financial advisors.
Since customers have come to demand prompt and efficient service, Northwestern Mutual has adopted a technology-first strategy. Now, clients have online and mobile access to insurance plans, financial goals, and a record of their financial behaviors.
EquityZen connects private companies with investors seeking alternative investments. Private company shareholders have a brand-new method to diversify and monetize their interests. EquityZen's patented process gives access to funds without affecting the company's shareholder count or capitalization table.
In the meantime, accredited investors now have access to gains formerly reserved for more prominent asset managers: upside in growth companies. EquityZen's platform enables investors to examine investment opportunities in emerging companies and industries via a secure marketplace.
SeedInvest is one of the leading NYC fintech companies, and it is an equity crowdfunding platform that connects venture capital, angel investors, and accredited investors with startups. The platform connects over 14,000 investors to well-vetted firms without charging investor fees or carrying interest. SeedInvest sources transactions from leading incubators, accelerators, and venture capital firms. The platform evaluates and accepts less than 1% of its overall deal flow. Through SeedInvest, 500 Startups, Spark Capital, Google Ventures, Great Oaks Venture Capital, Techstars, and others invest.
Bond Street is an emerging fintech, that redefines the way in which small businesses acquire access to credit through the use of technology, analytics, and design. Recently, the company and the global financial investment firm Jefferies renewed their loan purchase arrangement, allowing for up to $300 million in loan acquisitions.
This allowed Bond Street to boost its loan size range from $50,000 to $500,000 to $10,000 to $1,000,000. Data scientists applying to Bond Street are expected to utilize R and Python in a collaborative atmosphere.
Biz2Credit's mission is to support the financial needs of small businesses and make the funding environment more accessible. Within 48 hours of approval, the organization makes customized funding methods available to clients. As a result, Biz2Credit has generated over $7 billion in loans and financing for small businesses.
A platform for automated funding allows business owners to apply for a funding round after completing a brief profile and application. Biz2Credit then customizes its offerings to the circumstances of each business, providing working capital, term loan, and CRE loan options.
Titan seeks to eliminate the most important stock markets fear of missing out. How do they intend to accomplish this? By deploying an AI-powered investment banker via a mobile application.
Titan is one of the New York fintech startups with a tool that selects the 20 best stocks for your investment style by extracting data from leading hedge funds and comparing it to your unique risk profile. After determining what to invest in, the Titan app automatically purchases and sells stocks on your behalf.
By reading in-app reports and analyses, users can gain greater insight into the inner workings of the financial market. Titan now manages over $20 million in assets and has added Y-Combinator co-founder Paul Graham as an investor.
Forter provides enterprises with cloud-based fraud protection solutions. It provides payment protection to prevent fraudulent transactions, policy abuse protection for identifying abusers, intelligent routing for the automation of payment decisions, account security to avoid fraud and misuse of client base accounts, and more. It offers solutions to numerous industries, including food and beverage, travel, eCommerce, and retail.
Averity was founded in New York City to establish a recruitment agency that provides the most excellent quality of service to its clients and applicants and fosters a team-oriented work atmosphere. A culture built on the critical values of communication, ethics, innovation, and delivery is primarily responsible for the team's success instead of the individual's efforts alone.
They are aware of the skill shortage in the Information Technology and Engineering industries. As these businesses continue to expand, the demand for a sophisticated web presence, data monetization via business intelligence, and a measurable return on online advertising will increase.
The competition for competent IT professionals and engineers continues. Averity satisfies the capital markets demand by pairing clients with specifically skilled personnel, saving organizations time and money.
Lemonade is an insurance provider that uses AI and behavioral economics models to determine homeowners' and renters' most favorable insurance policies. Unlike traditional insurance, they prioritize openness.
Inverting the insurance model is Lemonade. Customers pay a flat monthly premium, which is used in part to cover future claims and in part to purchase reinsurance. It is increasing. Daniel Schreiber, an experienced manager, and serial entrepreneur, and Shai Winiger, who developed the freelance marketplace Fiverr, founded Lemonade in 2015.
However, Lemonade is on course to become their most profitable endeavor. It has already raised over $470 million in investment. The recent series D financing of $300 million in April 2019 established Lemonade as an official unicorn with a valuation of two billion dollars.
Lili provides a practical method of operation for those who must manage their finances. Small business owners and independent contractors have access to bank accounts, debit cards, mobile, cash deposit options, etc.
With the Lili mobile app, self-employed professionals can maintain financial control. The application connects to popular digital payment platforms and provides quick access to online funds. In addition, the tax bucket feature of Lili sets aside a custom amount for tax season, ensuring that users are prepared for any upcoming tax obligations.
The company is a worldwide fintech startup that reshapes asset management and institutional investment with artificial intelligence. The firm offers several discretionary products to investors, focusing on alternative credit markets
Focused primarily in the fixed income space through its proprietary technology package including powerful machine learning capabilities & big data analytics - Pagaya has created an entirely new method for managing savings accounts within economies where historically there's been little opportunity due both high risk but also low return rates offered by traditional banks or other financial institutions
The company has created its first comprehensive loan-level database using a hybrid of machine learning (ML) and financial technology to generate low-risk, high-yield portfolio strategies, resulting in above-market returns. Pagaya is supported by prominent fintech in NYC investors, including Oak HC/FT, Viola Ventures, and Harvey Golub, the former chairman of Amex.
Petal is an exceptionally democratic credit card issuer. You can obtain a credit card from the company without incurring any fees or having a credit history. Before providing credit cards, the company, one of the leading startups in New York, examines a person's whole financial history.
People with limited access to credit cards, such as immigrants and low-income Americans, can now utilize Petal's Visas for everyday expenditures. The New York fintech company offers its clients credit lines of up to $10,000. In September of 2019, Petal raised $300 million in debt, in addition to the investment from Peter Thiel's Valar Ventures.
Another challenger bank on our radar is MoneyLion. With a valuation of $800 million as of July 2019, it is very close to achieving unicorn status. It was introduced in 2013 and has already attracted over two million clients who have linked over a million accounts to the company's system. The New York financial technology company also originated 200,000 loans through its app. MoneyLion, in addition to providing its users with rapid and mobile banking experiences, also operates a rewards program for developing better financial habits. If you maintain good financial behaviors, you will receive various incentives.
This challenger bank utilizes machine learning to deliver individualized financial advice to its customers, as with nearly all businesses. MoneyLion has already obtained funding of $170 million.
Since its debut in 2010, BillGuard has secured more than $75 billion in personal finances. The startup has received $13 million in funding from IA Ventures, Bessemer Venture Partners, Khosla Ventures, Founders Fund, and Social Leverage. BillGuard enables users to spot fraudulent charges on their credit and debit cards and track online spending through an iPhone application. Additionally, Eric Schmidt, Peter Thiel, Adam Fisher, and others have invested in the business. BillGuard, which has 1.2 million registered customers, discovered unapproved charges totaling over $70 million. Prosper acquires BillGuard for $30 million.
Current is one of the NYC fintech startups specializing in banking mobile products for children. Using the Current app, you can rapidly send money to coworkers, store for all kinds of purposes, or set up direct deposit for paychecks via intuitive dashboards. Additionally, your parents can assist you with funds. Current issues Visa debit cards and enables Apple Pay for digital payments. The company received $20 million in a series b funding round in October 2019, which increased its NET worth to $120 million.
Stash is one of the top fintech companies in New York. It is a firm that began its way by providing a mobile investment application. For a bit cost of $1 each month, its primary goal was to assist individuals in investing wisely to develop a retirement safety net. However, the micro-investing application was only the beginning.
Now Stash is a full-fledged challenger bank that provides an all-inclusive banking experience with cash-back debit cards, conventional accounts, and fast transfers. Investors trusted in the company's promise and provided more than $184 million in finance. As of March 2019, the business was worth close to $390m.
Moven is a disruptive mobile-centric banking application that credible sources have hailed as "the bank of the future. The app, debit card, and contactless payment sticker of Moven give real-time spending information that encourages customers to make more prudent decisions and save more money. Moven is an alternative to high-fee and low-value standard bank deposit and payment options. The business has raised over $24 million from investors, including Route 66 Ventures, Standard Bank, SBT Venture Capital, Raptor Ventures, Anthemis Group, etc.
Pros to create fintech startup in New York City
1. New York City, the capital of finance and economics, offers abundant financial services
The world's largest stock exchange, the NYSE, is headquartered in NYC. It also has a host of international banks. A young banker can gain experience at Goldman Sachs or Morgan Stanley without a lot of travel. FinTech startups can tap into this resource base to tap into access to large banks and investment firms that are the mainstay of any fintech corporate culture.
2. It is home to the world's largest number of investment firms
The New York Stock Exchange has more than 2,300 listed companies. Additionally, there are more than 3,000 mutual funds as well as 200 Hedge Funds (as per Forbes). This gives startups an abundance of funding options.
3. The greatest concentration of banks and brokerages in the world
New York City is home to the largest number of American banks and brokerages, including Citigroup, JPMorgan Chase, Credit Suisse, Goldman Sachs, Bank of America, Morgan Stanley and more. All the major global financial institutions are present in NYC with many having their own branch offices in the city.
4. It is where finance was born
By 1860s Wall Street was attracting over 10 billion dollars in annual transactions. This attracted corporate giants such as J.P. Morgan to set up shop in NYC as they realized that they could move more money around faster than elsewhere. Besides, money was considered a commodity and an "asset" in the 19th century where as today it is a means of exchange.
5. High concentration of talented and trained financial professionals
The combination of the largest number of banks and brokerages makes it easier to find talented financial professionals who want to join a startup. It is easier to find a good salesperson at a bank or investment firm than to hire one directly from college.
All in all, as you can see, there are a lot of modern and potential fintech companies in NYC. Some of them are tech startups mentioned by Wall Street, but obviously, they are located in the same place. Therefore, if you are still thinking about whether you should lay down a foundation for your fintech company in New York, you can be confident you will be making the right decision to build your fintech community circle.