US Fintech Startup Landscape

Goals

To find out what asset classes and business models are performing the best within the fintech startup market in the United States, as well as the market share taken from traditional banks, in order to prepare a presentation to a major bank on the updated fintech startup landscape.

Early Findings

  • Companies noted to be revolutionizing the fintech space in the United States include PitchBook (equity markets), Avant (middle-income lending), OnDeck (small business lending), Forward Financing (small business same day financing), and Morningstar (investor services), to name a few.
  • MoneyLion was named the top emerging tech company by LendIt Fintech (a global and leading event in the financial services innovation industry). MoneyLion “is a leading mobile finance platform that empowers consumers to take control of their financial lives through better products for borrowing, saving, and investing.”
  • Some of the biggest fintech companies in the United Sates (as of February 2019) are Stripe ($22.5B), Coinbase ($8B), Robinhood ($5.6B), Ripple ($5B), SoFi ($4.4B), Credit Karma ($4B), Circle ($3B), Plaid ($2.65B), Avant ($2B), Gusto ($2B), and Zenefits ($2B).
  • Real estate may be the most transformed asset class in fintech in the last decade. Note that farmland (a $2.5B market) remained unchanged and a new startup, FarmTogether, is now innovating in that space.

Proposed next steps:

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The research team can continue the research by identifying or creating a list of 5-7 high-performing US fintech startups. The team will seek to identify these high-performers by market share, if available (please note that results from this initial research show the data may not be readily available; if more detailed research proves this, we will use some other metric like change in revenue, that evidences their growth). In an effort to provide updated information that is new and relevant, the team suggests using data that is from 2018 to present. Please confirm whether this is acceptable.
The team is also able to identify 7-10 insights from industry experts, news articles, academic/business studies, and market and industry reports that discuss the US fintech landscape as it relates to taking business and customers away from traditional banks. One of these insights will attempt to identify the market share fintech is taking from banks.
The research team can also assist by reviewing 2-3 asset classes (e.g., cryptocurrencies, P2P lending, invoice trading, and equity and real estate crowdfunding, among others) that are performing the best in the US (with company examples and relevant metrics). We will also identify 2-3 business models (with company examples and relevant metrics) that appear to be performing the best (e.g., alternative credit scoring, digital wallets, transaction delivery, and neo banking, among others).