The Fintech Startups boom in the UK has been very impressive. According to a study by Let’s Talk Payments about $5.5 billion (£3.8bn) was invested in Fintech businesses between July 2015 and January 2016.
However, the recent developments from the EU referendum might affect Fintech Businesses in the UK because Fintech firms in the UK benefit from the U.K. being a member of the European Union through some investment advantages. Following the announcement today of UK living the EU, the financial sector in the UK will be hit by this change and Fintech businesses will get the hit.
But If this is properly controlled and things go back to normal, the Fintech industry in the UK will continue to grow and the following UK Fintech startups will be the ones to watch in 2017:
DueDil pulls together data from many sources such as company websites, court judgments, trademarks, registry data, financial filings, and news reports. This helps firms to do their due diligence and avoid risks. The platform combines comprehensive company’s information to mitigate risks and uncover new business.
Since 2011, the startup has raised approximately nearly $30m (£20.6m) from investors and this figure is expected to rise come 2017.
More and more workers in UK are subscribing to FreeAgent, an online platform that analyses bank statements, calculate tax bills, and simplifies sending and tracking invoices. The startup has appeared twice on Fast 50 list of Deloitte and has more than 40,000 active freelancers. The company has also partnered with Danbro, the accountancy expert who focus on representing many small business and self-employed individuals across the UK.
Founded by Hiroki Takeuchi and Matt Robinson, GoCardless processes business to business expenses and direct debits faster than traditional banks. The firm allows customers to process payments using an online dashboard, integration through an API or account software partnerships.
More than 20,000 businesses are using GoCardless to process regular payments and this number is expected to rise in 2017. Each year, the company processes about $2 billion (£1.3 billion) worth of payments.
Revolut is trying to get rid of fees when you want to use money abroad. It works like a mobile wallet but has a physical MasterCard. Currently, the firm is set up in 90 states across three currencies (Euros, USD and pounds). To date, the company has raised $4.8 million (£3.2 million).
Nutmeg is an online wealth manager, with a user-friendly online interface, a mission to bring down barriers, and transparent pricing. All you need is to register with the platform to receive the best investment decisions. To date, the company has raised more than £37 million from investors.
- Atom Bank
Atom Bank is a digital-only bank and among the first to provide services via mobile app. The startup targets people who are tired of traditional banks. Recently, the firm launched its iPad and iPhone app to facilitate interaction between customers and the bank. So far, the firm has raised £135m in capital.
Launched in 2011, TransferWise saves business owners and people paying unknown bank fees and exaggerated exchange rates when changing money into different currencies. The business is valued at $1.1 billion and is expected to expand in 2017.
Established in February, Curve enables users to combine their bank cards under one app and card. The startup is trying to eliminate the hassle of carrying many cards at once. The company is becoming popular in UK as it targets freelancers, business owners and other self-employed people.
Wealthify, an investment platform that offers investment portfolios with reduced barriers to entry, was launched in April. The startup asks you to choose a risk proposition which is then followed by a suitability test to confirm their logic on risk models. It then invests in a range of asset classes.
Crowdcube is a peer-to-peer platform that enables people to raise capital for projects through donations from the public and invest in actual businesses. Since 2011, the firm has funded businesses to the tune of £138m by the help of 245,690 registered investors.
These Fintech businesses are already doing well so far, but is the #Brexit going to affect or benefit them ? Well, I say let’s watch and listen to hear from them.