05/11/15 Update: FinTech Market Map v2.0

FinTech_MarketMap_02091505/11/15 UPDATEAs a result of all the great feedback — over 50 comments and suggestions — the map is now 575+ names. This version includes a node for “Capital Markets” software, which I would define as companies that provide technology to institutions (asset managers, pension funds, banks, broker-dealers and other institutional investors) to analyze, access and participate in institutional financial markets. You’ll also find some Capital Markets firms in broader categories such as “Data and Analytics”, “Wealth Management”, and “API / Connectivity” because in many cases these companies serve both institutional and retail / consumer markets.  As always, feedback is very welcome!

Click here for full live mapI’ve been collecting lists of interesting financial technology startups for a while, but mostly they are lost in emails, bookmarks, Evernote and yellow stickies. So a few weeks ago I decided to get organized and start putting together a sector map of “fintech”.

It’s a good time to be doing this

  • Last year fintech firms raised $5.3Bn from VCs, 2x the amount in 2013. Commentators love to debate which city — New York, London or San Francisco — will be the “capital” for fintech. Bottom line is that the funds are flowing.
  • We’ve now had two of the first big fintech IPOs — Lending Club and OnDeck.
  • Fintech innovation is fast, smart and has the potential to disrupt established business models: online marketplaces disintermediate banks; low cost, consumer-friendly investment platforms are attracting assets dramatically faster than traditional asset managers; branchless banks deliver better service at a lower cost to more people; new payment technology provides better security, convenience and customer loyalty.
  • Traditional financial institutions are taking notice and starting to react. Many have (re)started venture funds or labs to make strategic investments. Others have chosen to partner (RBS referring clients to Funding Circle, Jefferies securitizing loans CircleBack, etc). Many more will acquire.
  • This technology makes our lives better.  In the future it will cost less and take less time to make a payment, transfer funds, buy foreign currency or obtain a loan.

So what is FinTech Continue reading “05/11/15 Update: FinTech Market Map v2.0”