Four FinTech Companies To Keep Your Eye On In 2016
Managing your money can be challenging. Luckily, technology has helped a number of people all around the world manage their finances. This merging of finance and technology has made an entire new disruptive industry. That industry is called FinTech. In the past, financial companies have been limited by their desire to stay within the norm. FinTech companies are pushing these boundaries and creating a drastic shift in the marketplace. Here are a four FinTech companies to look out for this year:
When Billguard was first launched, the intent was to help users find hidden fees from their credit card company or their bank. The company has since expanded, as it now has a tool that assists users in tracking their monthly spending in order to compare where their money is going each month. Data breaches are a constant concern, and Billguard has a solution to that too. The company sends users a push notification if they have stopped at the location where a data breach has occurred. Billguard also offers services to monitor your credit report and to find possible indicators of identity theft.
Robinhood is Palo Alto startup that aims to completely alter the landscape of online investing. This rapidly growing startup allows its customers to trade stocks with no fees required. One may wonder how a startup that operates this way is going to make money. Luckily, Robinhood has this covered. The first method Robinhood will use to generate revenue to to use margin accounts. Another way they will make money is by investing all of the non-invested customer cash balances. Risk-free treasuries will be used to undertake this plan. With $66 million in funding, Robinhood is definitely a startup to look out for.
SoFi, which stands for Social Finance, began as a way to help high-earning recent graduates refinance their student loans. Through the past couple of years, SoFi has expanded into the sectors of mortgages and personal loans. One of SoFi’s best features is that it offers Unemployment Protection. Borrowers who lose their jobs are given the ability to pause their loan payments for up to three months at a time. SoFi will also help unemployed people find new jobs with the aid of its career counseling program.
4. Lending Club
Peer-to-peer lending companies have become increasingly popular in recent years. One of the biggest companies in this category is Lending Club. This company offers businesses and consumers an alternative way to receive a loan. And if you have a low credit score, Lending Club has you covered, offering loans to individuals with credit scores as low as 620. Rates range from 5.99% to 32.99%. Lending Club also gives you the opportunity to be on the lending side. Those who lend with Lending Club have the chance to receive a much better return than other fixed income investments, thus adding a lot more diversification to their portfolio.
There are so many companies in the FinTech world that it can be hard to keep track. These four companies are some of the most important names on the map and they are bound to make an even bigger impact in the future.