Curated by: Sergio A. Martínez
FinTech is a rapidly growing industry that is upending the traditional financial sector by harnessing the power of digital technologies. This way, FinTech companies can provide new services and products that are more accessible and affordable than ever before, effectively democratizing access to finance to everyday people. From mobile banking and investing apps to technologies like blockchain-based currencies, FinTech is reshaping the way we think about money.
It’s no wonder, then, that the FinTech industry has seen explosive growth in recent years, and there are no signs of it slowing down thanks to the increasing availability of data, the rise of mobile commerce, and the growing demand for innovative financial products. With more and more consumers turning to FinTech solutions for their financial needs, bringing very specific financial challenges to an area where economic stability is not guaranteed often, it’s clear that this industry is poised for continued success in the years to come.
However, what distinguishes the merely good FinTech companies from the best ones?
There are many vital components to a great FinTech company, from a strong customer focus to innovations in technology, to a deep understanding of the financial industry, A great Fintech company, above all, is always looking for ways to improve its accessibility and the range of options the average consumer has in terms of financial choices, giving people a kind of freedom with their money that they probably didn’t have before. A great FinTech company, in other words, makes our lives easier and more convenient.
That’s why we want to close out our year here at Scio by spotlighting those companies that pushed the envelope in FinTech, distinguished by their innovation, approach, and the solutions they brought to a market growing in importance each day, naming the 5 FinTech Companies to Watch coming 2023 and beyond.
Paya
Describing Paya as a mere payment processing provider would be missing what makes these companies one of the leading FinTech operations today, exemplifying everything great about this tech field. What Paya offers, after all, is “integrated payment and frictionless commerce solutions that help customers accept and make payments, expedite receipt of money, and increase operating efficiencies”, effectively easing the barriers in the transactions between business and customers, with an emphasis on the Front-End experience that makes using the services offered by Paya a seamless experience.
As a result, you can find the technology of Paya in a wide range of industries, from Healthcare, Education, and E-Commerce, to the Public and Non-profit sectors, thanks to a digital infrastructure that offers security, speed, and convenience no matter what kind of solutions an organization is looking for. For these reasons, we believe we will hear more from Paya in the future while they continue to offer the best solution in frictionless payment.
Wise
International money transfers can be a real pain. You have to contend with different exchange rates, and you may also need to open a bank account in the country you’re moving to, which can be a time-consuming process. And that’s without getting into the fees associated with transferring money between countries, which can eat into the amount you need to move, and it can take a while for the money to reach its destination, meaning you may have to wait a while before you can access your funds. All these factors can make moving money between countries a bit of a hassle, if not impractical.
Thankfully, there are a few ways to minimize the hassle of international money transfers, and there’s no better option than Wise, which makes living a global lifestyle easier than ever before. The main core service that Wise offer is a platform that takes care of the hassle of sending money overseas with very low fees, enabling the transfer of money between countries more practical than ever before, and ensuring your money is where you need it when you need it, be it sending money back to home, or having access to it while you travel and live abroad.
Stash
Many people believe that investing is something that only wealthy people can do, and for the average person, getting into this area of finance can seem like a daunting task. That’s because when most people think of investing, they probably envision stock portfolios and real estate ventures that require a significant amount of capital to get started, and while these are certainly valid options, they’re not the only opportunities out there. In reality, there’s a whole world of investing beyond stocks and property to grow your money if you’re willing to take on a little bit of risk.
That’s why one of the most exciting applications of FinTech platforms is the potential to democratize investing, and there are now several companies that are working on ways to make investing accessible to everyone, which is where Stash comes in. Stash is a platform that makes investing “easy and affordable for millions of Americans”, to create more financial freedom for its users, making this area of finance more democratic and accessible all around. As one of the biggest promises of FinTech, what Stash brings to the table is the power of the average person to take better control of their financial future. That’s why it is exciting to see what will await Stash in the future, undoubtedly changing the way we look at investing.
Sequence Shift
While it’s convenient to pay bills over the phone, the idea of doing so nowadays seems antiquated, if not downright risky. After all, if you give your credit card information over the phone, there’s no way to know what will happen with that data down the line, it’s easy to impersonate a legitimate business, or if they’re just going to use your information to make fraudulent charges. And even if the company is legit, there’s always the chance that your information could be stolen in a data breach.
All in all, paying over the phone seems like a relic from another era when our sense of information security and practicality were different, which is why the technology of Sequence Shift seems so promising and exciting at a time when having a wide range of options to pay for stuff is more desirable than ever. Simply put, what Sequence Shift, an Advance Technology Partner of Amazon Web Services, offers is the security infrastructure necessary to make safe payments over the phone when interacting with AWS environments, reducing the risk of using this method, and bringing a better customer experience by making phone payment viable again. With that, Sequence Shift demonstrates that sometimes innovation is bringing back methods and practices that, on paper, seem a thing of the past, but only because no one has thought of a way to improve on them and bring them in line with the expectations of the modern user. And as a partner of Amazon, we can expect Sequence Shift to reshape how we see online payments in the not-too-distant future.
Prosper
When people need to borrow money, they usually have a few options. They can take out a loan from a bank or other financial institution, borrow from friends or family, or use a credit card. And for many people, taking out a loan from an acquaintance is the best option. One reason for this is that friends are usually more willing to give favorable terms, such as lower interest rates or longer repayment periods. Another reason is that borrowing from friends can be less expensive in the long run, since there are no fees or other costs associated with the loan. Finally, people often feel more comfortable borrowing from friends than from businesses, because they know that their relationships will not be adversely affected if they can’t repay the loan.
However, when so much of our financial activity occurs online, this option may seem out of reach for many people, and considering that loans are often done with a degree of urgency, a solution for this specific challenge would be more than welcome in the FinTech landscape. And Prosper more than delivers on that front. In short, what Prosper offers is a personal lending concept where a group of lenders (or more accurately, investors) can let anyone borrow money through a P2P system, which keeps interests as low as possible, through a direct deposit that will arrive at you in no time at all. With a monthly repayment method that lets you choose your payment rate, it’s no wonder that Prosper is positioning itself as a leader in the emerging field of e-lending, so worth keeping an eye on.
Final thoughts
No one can predict the future, but with more and more people using their smartphones as their primary way to bank, the growth of FinTech as an industry is only going to grow. This means that we can expect to see more investment in these technologies, like the widespread adoption of mobile-friendly features like touch ID and facial recognition, and we can expect to see more FinTech startups focused on developing countries, where there is a great need for financial services but a lack of infrastructure.
And for now, these companies illustrate why this field remains so exciting and worth investing and participating in. FinTech, as a space, holds the promise of a future where finance is integrated seamlessly into our everyday lives, and the innovations put forth by these companies demonstrate why. And who knows what the future will bring? But one thing is for sure: it’s going to be fascinating to watch!
Scio is an established Nearshore software development company based in Mexico that specializes in providing high-quality, cost-effective technologies for pioneering tech companies. We have been building and mentoring teams of engineers since 2003 and our experience gives us access not only to the knowledge but also the expertise needed when tackling any project. Get started today by contacting us about your project needs – We have teams available to help you achieve your business goals. Get in contact today!