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Financial technology (fintech) companies in the United States are introducing a wide range of innovative solutions that every commercial bank should know about. Here is a guide to 17 top fintech companies catering to the commercial banking sector to watch in 2019.
Appway has developed a platform financial institutions of all types can use to build flexible business applications. It is particularly useful for developing automated processes, such as new account opening.
Axoni is one of the few fintech software companies that offer a full range of blockchain-based services to financial institutions, including process automation, data security, and integration with external systems.
Technically not a startup but still funded by private equity, Bankrate.com is among the fintech companies commercial banks should be familiar with because of the consumer services it provides. It allows users to compare interest rates from thousands of banks on all types of loans, credit cards, deposit account and more.
Plaid connects various payment apps and other services to customers’ bank accounts for fast, automated payment authorizations. The company is reportedly now valued at $2.7 billion and is connected to about 10,000 banks.
Best known for cryptocurrency, Ripple is one of the fastest-growing U.S. fintech startups and is developing a “blockchain-based global settlements network” to compete with SWIFT, a messaging platform used by nearly every bank in the world.
5 & 6. Fiserv and First Data
These two U.S. fintech startups have recently merged to form a venture worth a reported $22 billion. First Data is a payment processing system, while Fiserv develops fintech for commercial banks and credit unions, mainly systems applications.
Capterra has developed a full-range management system for microfinance institutions called CoBIS. The management suite is also useful for commercial banking, as it allows a bank to launch a separate microfinance business without a large investment in system infrastructure.
ieDigital provides a system called Interact, which is designed to provide efficient communications between the customer contact center and the back office. This allows for a much faster resolution of customer concerns. The platform facilitates data-sharing among different departments in the bank.
New York-based Fundera does not provide fintech solutions for commercial banks. Rather it is a small business loan marketplace. Commercial banks can partner with Fundera as loan vendors.
10. CB Insights
Considered one of the top fintech companies catering to investment banks, CB Insights specializes in data mining. Commercial banks and other financial institutions can use CB Insights’ programs to build customer lists, identify investment and market trends, and conduct due diligence and underwriting.
Token‘s fintech for commercial banks is a digital payment system intended to provide customers a more secure payment method. The company has created a suite of software products that allow banks, software developers and businesses to build their own white-label digital payment programs.
Another of the fast-growing fintech companies targeting both commercial banks and consumers is Ondot. Ondot’s package of software solutions manages customer support and back office processes of mobile card services.
Cashflower provides cash management and credit access programs to small businesses. But works with banks to direct small business customers to bank lines of credit rather than non-bank lenders.
SizeUp’s product is a software package for banks to manage small business customer acquisition and retention. The system improves customer engagement by allowing banks to introduce relevant bank products at key points in the business lifecycle of its customers.
Wealthfront is an automated investment program that manages a portfolio of index funds for individual online investors. The company is seeking partnerships with commercial banks who want to offer investment products to their customers at lower costs, as Wealthfront’s fees are only 0.25% per year.
Atlanta-based GreenSky has two main products. One is an online lending platform for consumers and small businesses, which has already gained more than 1.7 million customers. The other is a mobile lending app for large banks looking to expand their online services. To date, 14 major banks have rolled out the app.
Symphony is a secure messaging app created especially for the financial services industry. Described as being similar to Slack but with better encryption, Symphony is used by at least 15 large banks and 200,000 individual subscribers.
Whether you are looking for new applications to enhance processes and customer engagement, seeking digital partners to extend their reach while keeping costs low, or staying informed of the competition, commercial banks should watch the fintech startup space carefully.
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