Top Fintech Companies in the US
The FinTech industry is growing year after year, especially in the United States of America, China, and the United Kingdom. In 2021, over the first three quarters, fintech companies raised US$94.7 billion in total investment worldwide. By the end of the year, the aggregate amount of money that investors pumped into this business was well above US$200 billion.
As more FinTech businesses enter the international market, it gets more difficult to go through the long list of them to identify the major companies in different countries. To make it easy for you, we have compiled an up-to-date list of the top FinTech businesses operating across various industries in the United States.
What is FinTech all about?
FinTech refers to the application of technology in improving, automating, and easing the use of financial services. It also refers to any business that uses software or other technologies to offer financial services.
FinTech companies have revolutionised practically every aspect of the financial industry over the years. Today, you do not always have to go to a physical bank branch to deposit cash, open a savings or checking account, apply for credit, invest in short-term and long-term financial assets, or transfer money. Instead, you can use new alternatives, which includeneobanks and online-only financial institutions. Their products and services are accessible via their mobile apps and online desktop platforms.
Evolution of FinTech in the USA
FinTech evolved in the USA during the 1950s when the first credit cards were introduced to the public. Since then, it has been developing. Today, there are numerous FinTech products in the global financial industry. They include automated teller machines (ATMs), mainframe bank computers, electronic wallets (e-wallets), online stock exchanges, electronic shares, and so on.
Due to modern FinTech, when making payments, individuals and businesses can now use e-wallets instead of physical bank cards. One or more bank cards can be held in a digital wallet at a time. Thus, the process of making payments in-person at stores or online at e-commerce sites has been made easy, safer, and faster.
Top FinTech Companies in the US
In the United States, the top FinTech businesses include multinational corporations and startups. They offer products and services in the areas of banking, payments, investing and wealth management, insurance, currency markets and exchanges, and lending and financing. Below is our list of them.
Banking
Ally Financial
Industry: Financial services
Location: Detroit, Michigan
Founders: General Motors
Year: 1919.
What it does: Ally Financial provides digital financial solutions to consumers, corporate clients, businesses, and automobile dealers. This holding company offers several products and services that span across banking, investing, personal loans, auto financing, and securities brokerage.
Chime
Industry: Financial services
Location: San Francisco, California
Founders: Chris Britt and Ryan King
Year: 2013
What it does: Chime is a financial technology company and neobank that believes in creating helpful, simple, and free banking services. It does not charge overdraft and monthly service fees. It also does not have any minimum balance requirements for customers. Through collaboration with regional banks, Chime provides services that meet the needs of its customers.
Payments
Stripe
Industry: Financial services
Location: San Francisco, California.
Founders: Patrick and John Collison.
Year: 2010
What it does: Stripe is a top provider of a wide range of business solutions. Its payment solutions are used by online and offline merchants, subscription businesses, software platforms, marketplaces, and everything in between. It assists businesses in preventing fraud, sending invoices, issuing virtual and physical cards, obtaining loans, managing business spending, and more. Some of its clients are N26, Amazon, Shopify, Google, Microsoft, and Zoom.
PayPal
Industry: Financial technology
Location: San Jose, California
Founders: Peter Thiel, M. Levchin, L. Nosek, K. Howery, Y. Pan, and R. Simmons.
Year: 1998
What it does: PayPal is a secure online payment system that lets individuals and businesses send and receive money domestically and internationally. PayPal is ideal for making e-commerce transactions when you link a bank account, debit card, or credit card to it. It can be accessed over the web or via a mobile app. You can use PayPal to make anonymous payments.
Plaid
Industry: Financial technology
Location: San Francisco, California.
Founders: Zach Perret and William Hockey.
Year: 2013
What it does: Plaid is a world-class open banking platform. It assists businesses in developing FinTech solutions, allowing people to link their financial data easily, safely, and reliably to online applications and digital services. Through different financial technology apps, Plaid makes it possible for consumers and companies to connect to their bank accounts, check balances, and make payments. It only takes a few lines of code to implement its API. The company allows users to move and track funds by connecting payment applications like Square Cash and personal finance apps like Acorns to their bank accounts. Its clients include Venmo, American Express, Coinbase, and Betterment.
Investing and Wealth Management
Robinhood
Industry: Financial services
Location: Menlo Park, California
Founders: Vladimir Tenev and Baiju Bhatt.
Year: 2013
What it does: Also known as Robinhood Markets, this company is an online discount brokerage that provides commission-free investing and financial planning tools. It is a first-of-its-kind commission-free investing and trading software that provides you with additional options for making your money grow faster. It is regulated by the Securities and Exchange Commission (SEC). Due to its membership in the Securities Investor Protection Corporation (SIPC), its customers’ funds are secured up to US$250,000 for cash claims and US$500,000 for securities.
Opendoor
Industry: Real estate development and property management
Location: San Francisco
Founders: Keith Rabois, Eric Wu, Ian Wong, and JD Ross.
Year: 2014
What it does: Opendoor is a renowned residential real estate internet platform. With a new and easy way to purchase and sell your house, the company is redefining one of life's most essential transactions. It has made it possible for real estate traders to use their mobile devices for buying and selling homes. To speed up and enhance its operations, it employs artificial intelligence and other innovative technology. In terms of revenue generation, the firm charges a sales fee, which is paid by the house seller, and interest on mortgage loans to generate money.
Insurance
Root
Industry: Insurance
Location: Columbus, Ohio.
Founders: Alex Timm and Dan Manges.
Year: 2015
What it does: Root is focused on developing the world's most adaptable online car insurance platform to support a digital, accessible, and customer-centric future for the insurance industry. It designs, builds, and manages insurance products made available via its application programming interface (API), thanks to its partnerships with underwriters, reinsurers, payment providers, and third-party administrators. Root can run your insurance business from anywhere. It lets you save up to US$900 per year, customise your coverage, submit a claim in minutes, receive 24/7 roadside assistance, earn money by introducing friends, and manage everything using an app.
Shift Technology
Industry: E-commerce and automotive
Location: San Francisco, California.
Founders: George Arison, Minnie Ingersoll, M. Knutson, and Christian Ohler.
Year: 2014
What it does: Shift Technology addresses various essential procedures across the insurance policy lifecycle; and assists insurers in achieving faster, more accurate claims and policy resolutions. It provides the first AI-native decision automation and optimization solutions designed for the global insurance market. Shift has successfully analysed billions of insurance transactions. The company also has an online marketplace where you can buy and sell second-hand automobiles.
Markets, Currencies, and Exchanges
Ripple
Industry: Computer software and cryptocurrency
Location: San Francisco, California.
Founders: Chris Larsen and Jed McCaleb
Year: 2012
What it does: Ripple is using its payment protocol and exchange network to help developers, businesses, financial institutions, and governments produce results and create economic opportunities with the power of crypto. It acts as both a digital payment network and a cryptocurrency—XRP. Kraken andeToro are examples of exchanges where you can buy XRP.
Coinbase
Industry: Cryptocurrency
Location: San Francisco.
Founders: Brian Armstrong and Fred Ehrsam.
Year: 2012.
What it does: Through its secure online platform for trading, transferring, investing, and storing cryptocurrency, Coinbase is helping to develop a fairer, more accessible, efficient, and transparent crypto economy. It provides one of thebest crypto apps and exchanges on the market.
Circle
Industry: Financial services and cryptocurrency
Location: Boston, Massachusetts.
Founders: Jeremy Allaire and Sean Neville
Year: 2013
What it does: Circle started as a consumer-focused P2P payment platform, crypto wallet, and crypto exchange app. Over the years, it has grown into a payments company and a blockchain-focused financial services provider.
Kraken
Industry: Financial services and cryptocurrency
Location: San Francisco, California
Founders: Jesse Power
Year: 2011
What it does: Kraken is a globally trusted cryptocurrency exchange and the first crypto company to receive a US banking charter. Kraken provides fiduciary services and comprehensive deposit-taking custody for digital assets. On Kraken, you can start trading in crypto with an amount as small as US$10. It allows its customers to buy over 65 cryptocurrencies in a few minutes.
Lending and Financing Technology
SoFi
Industry: Personal finance, banking, and software
Location: San Francisco, California
Founders: Mike Cagney, Dan Macklin, Ian Brady, and James Finnigan.
Year: 2011
What it does: SoFi is an online bank and digital personal finance company that offers credit cards, student loans, auto loan refinancing, personal loans, mortgages, mobile banking, investing, and other financial products.
Credit Karma
Industry: Software, personal finance, and financial technology
Location: San Francisco, California
Founders: Kenneth Lin, Nichole Mustard, and Ryan Graciano
Year: 2007
What it does: Credit Karma is a personal finance company with a global reach. It is a free credit and financial management digital solution that also offers unclaimed property database monitoring and a trustworthy credit report tool. In return for the information it collects about your spending patterns, Credit Karma provides you with a free credit score and credit report. It gives you free access to your credit report for the rest of your life, helping you make the most of your credit score.
Conclusion
FinTech is a thriving business that has everyone's attention, particularly investors. Its development attempts to minimise the cost of providing financial services, allow more clients to be served in innovative ways, and reduce the necessity for face-to-face interaction. Through this article, we have highlighted the leading FinTech businesses and start-ups in the United States to help you make informed financing and investment decisions.
