Fintech Firms Thrive In NYC
Fintech has taken New York City and the world by storm, changing the way financial transactions are carried out and generally providing new and innovative solutions to common monetary problems. Fintech is a combination of the words financial and technology and generally covers areas like online peer to peer lending, investment learning apps, mobile banking, digital wallets and even currencies like Bitcoin and Ethereum. Fintech has transformed finance; making it easier for people to borrow money, streamlining international money transfers, improving financial service delivery and allowing people to access services from wherever they are. The future of Fintech looks bright, with more and better innovations expected to enter the market, changing the way the financial systems operates forever and providing businesses and consumers with immeasurable financial solutions.
A June 2016 report by Accenture Strategy and Partnership Group indicated that for the first time since the inception of Silicon Valley, more Fintech venture capital flowed into New York City than San Francisco. A staggering $690 million in venture capital funding went to Fintech firms in NYC during the first quarter of last year while Silicon Valley received $511 million in the same time period. New York City remains the top Fintech hub, housing some of the largest and most innovative companies globally and facilitating the launch of new and innovative Fintech startups offering never before seen services.
NYC remains a popular Fintech hub for several reasons; as a leading global financial center, it already attracts billions of dollars in venture capital. Further, many of the world’s biggest financial companies are located here, providing opportunities for Fintech inventors to address the shortfalls in the early stages. Finally, a friendly investment climate fosters an environment of continuous innovation and improvement.
Fintech startups and firms in NYC tend to concentrate on areas like payments, insurance, cryptocurrency, investment advisory services and cloud computing. Fintech continues to be big business in NYC with over 25 firms currently valued at over $1 billion.
Fintech is expected to change the NYC startup climate. With a little time and innovation, NYC should become the major Fintech center attracting investors and consumers from around the world. Here are the eight Fintech startups that are currently making that happen.
Averity began out of the desire to create a different recruitment firm in New York City that not only provides the highest level of service to its clients and candidates but also creates a positive team-oriented work environment. The success is based heavily on the production of the team, not just the individual, creating a culture based on core values of communication, ethics, innovation, and delivery.
They understand the shortage of high-quality talent within the Information Technology and Engineering sectors. As these industries continue to grow, the demand for a sophisticated web presence, monetization of data through business intelligence and a realizable return on online advertising will continue to increase.
The battle for talented IT specialists and engineers remains. Averity is filling the need in the market by matching specifically skilled workers with clients, saving businesses time and money.
MarketFactory is changing the way Wall Street moves money. They provide mission-critical software that powers the largest market in the world, foreign exchange. Top financial institutions globally rely on MarketFactory 24/7 to process transactions in microseconds that keep financial markets healthy.
#6 Haven Life
Haven Life provides a simple, affordable option for buying quality term life insurance online in 20 minutes. They’ve transformed a typically time-consuming and confusing process into one that’s easier, faster and just plain better.
EquityZen connects shareholders of private companies with investors seeking alternative investments. Private company shareholders have a brand new way to diversify and monetize their holdings. EquityZen’s proprietary solution provides access to cash without any effect on the company’s shareholder count or capitalization table.
Meanwhile, accredited investors gain access to returns previously limited to larger asset managers: upside in growth firms. EquityZen’s platform establishes a secure marketplace, allowing investors to browse investment opportunities in emerging companies and industries.
Quovo is an end-to-end financial technology platform that empowers advisors and professionals with data management and insights tools, all delivered elegantly via the web.
They aggregate financial accounts and enrich data with groundbreaking proprietary technology to normalize, transform, and reconcile disparate data from any source.
Their smart aggregation enables instantaneous, powerful analysis for investment data. See any statistic, over any time period, for any portfolio, on the fly. Even feed data into sophisticated simulations — effortlessly.
Because they take full ownership of the data workflow, their platform can translate large, complex data sets into a variety of visualizations — making otherwise messy data beautiful, usable, and valuable.
With bank-level encryption and 3rd party security validation, Quovo ensures that your data remains secure. Hosted in the cloud, their technology turns your browser or mobile device into a professional-grade data and insights application.
Novus is a portfolio analytics and intelligence platform for institutional investors. The platform is used by many of the top hedge funds, pensions, sovereign wealth funds and endowments to analyze their risk, performance, and attribution across aggregated and historical data sets. The company was founded by a group of investors, data scientists and engineers to build a foundation that helps the world’s top investors generate higher returns.
Portfolio managers, investor relations teams, and operations teams use the Novus in different ways, but ultimately to analyze and manage their risks, report to their investors and become more efficient with resources.
PolicyGenius was founded by two former McKinsey consultants who saw a gap in the insurance industry and dedicated themselves to shifting the industry online and into the hands of the consumer.
Through its highly tailored Insurance Checkup, users can discover their coverage gaps and review solutions for their exact needs. The company provides the only place online to shop for health, life, long-term disability, renters and pet insurance through its highly accurate quoting engines that offer side-by-side comparisons of tailored policies.
SeedInvest is a leading equity crowdfunding platform that connects investors with high-quality startups. They provide investors with access to highly vetted startup investment opportunities. Since launching, SeedInvest has attracted thousands of investors who are collectively looking to invest over $200 million in startups.