Estonia is a fertile ground for fintech start-ups. The country makes waves internationally for its e-residency program and Digital identity underwritten by the government through Mobile ID and ID card schemes. These schemes offer definitive proof of ID in a digital setting and are used daily by businesses and individuals to sign contracts, file returns, make bank transfers, etc. According to World Bank statistics, Estonia possesses among the lowest number of ATMS and bank branches in the developed world. With companies that are active locally, regionally and internationally, Estonia is a growing centre for fintech. See some of the popular fintech companies to watch in Estonia.
Founded in 2008, Bondora offers investment opportunities to individuals who want to lend money to creditworthy borrowers. It has processed more than 400 million euro of loans applications from borrowers. With over 9,000 investors from 37 countries, the platform has funded 35 million euro in loans and received more than 4 million euro in interest payments.
Fortumo is a mobile payments start-up that allows direct carrier billing with over 350 mobile operators in over 90 countries. Its payment products work across many platforms including smartphones, desktop devices, phones, smart TV-s, and tablets. These products give customers a simple and 1-click payment method to charge online purchases to their phone bill.
Co-founded by Estonian Taavet Hinriku, TransferWise offers peer-to-peer money transfer service. It is among the 50 world’s top fintech innovators, according to Fintech 100 list. In 2015, TransferWise was chosen by the World Economic Forum as ‘technology pioneer’. Launched in 2011, the firm has grown to employ more 300 people in Tallinn, London, and New York, supporting more than 300 currency routes across the world.
Pocopay is a digital bank that targets millennials. Founded in 2014, the bank’s mobile app allows users in Estonia, Netherlands, and Spain to open a banking account within minutes. Via the app, customers make and receive payments, manage their finances, as well as make an application for a Pocopay debit MasterCard and other financial services.
5) Admiral Markets
Admiral Markets is a leading Forex and CFD broker that prompt customer support in trading currencies, stocks, precious metal, indices, and energy. Currently, the company has over 94000 active customers and a total monthly trading volume of about $50 billion. For its continuously outstanding performance and growth, the company was voted “Best Forex Broker in the Baltic Region” in 2012.
6) Arvato Bertlesmann
Arvato is a leading global service provider that thrives on digital technology. With over 66,400 employees from more than 35 countries, the company design and implement financial solutions for many different business processes throughout integrated service chains.
7) Friendly Finance
Using the latest innovations in mobile OS and IT, Friendly Finance provides fast, convenient and transparent financial services. It is also a digital consumer lender in six European countries. The company has a strong capital base and plans for future expansion.
8) LHV Bank
Headquartered in Tallinn, LHV Pank is leading retail bank and fintech investor. The company is a partner in the virtual E-residency of Estonia program, allowing e-Residents to open a bank account in Estonia. LHV Pank was fully cash-free, working only with card payments and electronic transfers, until 2015 when it opened its first 10 ATM machines.
9) Big Data Scoring
Founded in 2013, Data Scoring is a credit scoring firm that develops generic and custom-made credit score models based on social networks and Big Data. The company is the first in the world to provide a confirmed, generic social media scorecard as a service to creditors in Europe.
Investly is Estonia-based P2P finance platform that allows SMEs to sell invoices to investors within two days after credit checks have been cleared. The company enables its customers to raise debt funding on its platform from investors. Founded in 2013, the start-up receives funding from SpeedInvest.