KPMG ranks top fintech startups across the world
The firm’s fifth annual Fintech100...
The auditing company, KPMG, has released a its pick of the 100 most innovative fintech startups across the world.
The firm’s fifth annual Fintech100 list targets firms “creating products and services at the juncture of technology and financial services who are seeking to disrupt the existing processes and products that dominate the marketplace”.
KPMG accounted for average annual capital raised as well as sectoral and geographical diversity when selecting the startups, which span across 36 nations.
Here are the top 10:
The China-based lending and wealth management platform was founded in 2011. The firm, which was established by Ping An Group, targets consumer lending. Last year Lufax entered Singaore’s market.
9. Atom Bank
The company is described as “the UK’s first bank designed specifically for digital”. The startup was founded in 2014, and has since introduced its Digital Mortages by Atom, Business Lending for SMEs, and four Fixed Saver accounts.
The US-based fee stock trading app that launched in 2013, Robinhood, offers its customers ETFs, options, and cryptocurrency trading.
Nubank is available in Brazil and was established five years ago. The startup has developed an app for mobiles phones that controls a platinum Mastercard credit card. The firm does not charge fees for card usage, which can be used across 30mn channels.
6. Oscar Health
The US’ Oscar aims to transform the nation’s healthcare system through big data and machine learning. The five-year-old firm works on making preventative health care management and claims processing more transparent.
The online finance startup offers student loan refinancing, mortgages, and personal loans in an unconventional approach. The US company, which was founded in 2011, considers customer’s account merit, employment records in an attempt to create a holistic approach to lending.
4. Du Xiaoman Financial
Du Xiaoman Financial was introduced to China three years ago. The company, which separated from parent firm Baidu earlier this year, “gives full play to Baidu’s AI advantages and technical strength in the era of intelligent finance, and works with financial institution partners to provide more reliable financial services to more people.”
Singapore’s Grab is an offline-to-online mobile platform founded in 2012. The app provides essential services to commuters in the region. The startup launched GrabPay in 2016 to manage payments from ride-hailing.
2. JD Finance
The Chinese-base digital technology company works in online and offline all-scenario services, focusing on three key AI, cloud computing, blockchain, and IoT.
1. Ant Financial
Ant Financial is the oldest startup in the top 10 list, having been founded in 2004. The Chinese firm “is dedicated to using technology to bring the world equal opportunities.” The company uses blockchain, AI, and IoT to serve the unbanked and underba
Start-ups receive $60 billion investment, smash 2020 record
Start-ups on the continent have raised a massive 43.8 billion euros ($60.9 billion) in just the first six months of 2021, according to figures from Dealroom, surpassing the record 38.5 billion euros invested last year..
This is despite the fact that the number of venture deals signed so far is around half the amount agreed in 2020. Only about 2,700 funding rounds have been raised so far this year, compared to 5,200 last year.
Prime examples in times of change
Examples are Swedish buy-now-pay-later firm Klarna which has raised more than $1.6 billion in two financing rounds, the German stock trading app Trade Republic received $900 million in May and British payments provider Checkout.com snapped up $450 million at the start of the year.
The figures suggest that European tech firms are pulling in far larger sums of money per investment than in previous years, which defies the economic uncertainty of the pandemic and boosted online services enormously.
The CEO of Checkout.com, Guillaume Pousaz, said start-ups have often been created in times of crisis, citing the emergence of several new financial technology companies in the wake of the 2008 global financial crisis.
He added that big transformational change was often the time when there is the emergence of a lot of new start-ups, sometimes when people are losing their jobs for associated reasons.
UK leading the charge
Scale-Up Europe, a group that includes the founders of UiPath and Wise, proposed 21 recommendations to help the region build “the next generation of tech giants.” Among the suggestions are tax credits to corporates for investing in start-ups and regulatory changes that adapt to new innovations.
Sebastian Siemiatkowski, CEO of Klarna, said the U.K. leads Europe when it comes to tech policy, and that there were a number of regulatory issues needing to be addressed before the European Union can produce tech giants of its own.
Siemiatkowski highlighted EU regulation of web cookies as an example of “poor regulation.” Yet, as the number of $1 billion start-ups in Europe continues to grow, the number of exits in the continent is also increasing.
This year has already seen some notable acquisitions, including Etsy’s $1.6 billion purchase of U.K. fashion resale app Depop and JPMorgan’s takeover of London robo-advisor Nutmeg.
As for stock market listings, a number of notable debuts have taken place in London in particular, including food delivery app Deliveroo, cybersecurity firm Darktrace and reviews site Trustpilot. Money transfer giant Wise, formerly known as TransferWise, plans to go public in the U.K. capital soon.