6 Great Examples of emerging Companies disrupting Financial Services
Financial technology is one of the fastest-growing industries in UK.
More than any other start-up industry, fintech companies have raised £14.9 billion in equity funding since 2011 and helped millions of customers. This makes for a very exciting industry that sees constant innovation and new products and services emerging for consumers and businesses to use.
Below are 6 fintech companies making great waves in fintech, using the opportunity of Open Finance to create innovative new products, gain interest from investors and grow rapidly.
iwoca has been around for ten years providing short-term business loans for SMEs. The loans range from £1,000 to £200,000, mainly to cover cash flow issues or new investments. iwoca has been important in helping companies during the pandemic and have offered loans to over 50,000 businesses.
What makes iwoca different to other lenders is their tech and speed of the service. The technology means loans are determined based on a holistic view of the company’s finances, rather than solely the credit score as traditional loans do. The application process takes around 5 minutes but iwoca staff are on call for any issues, and decisions are usually made within 24 hours.
Iwoca has set a new precedent for how loans should encompass the recipient’s whole financial health, reducing the dependence on current narrow parameters and opening financial services to those previously excluded.
Nutmeg is an online investment service that was the first and now largest digital wealth manager in the UK. Nutmeg is user friendly and offers a variety of investment opportunities for a range of goals.
The process is started when the investor sets the amount and level of risk. They then choose one of four investment styles — fully managed, smart alpha, fixed allocation or socially responsible — and decide whether to invest immediately or gradually. Nutmeg then establish a portfolio for the investments, provide updates on their performance and the ability to change the investment preferences.
Nutmeg was one of the first companies to make investments simple and accessible for a wider range of consumers. Investors are updated at all points in the process, allowing consumers to maintain control of their finances. Other investment management services have since followed suit, demonstrating that the future of investment is in the hands of the consumer.
Tide offers online current accounts for small business owners with an aim to reduce time spent on expenses so they can focus on business.
Small business owners can seamlessly control transactions, create and manage invoices and view alternative products all through the Tide app and are issued a free Mastercard for making business purchases.
Tide customers enjoy the simplicity of controlling a range of their business’ finances on one app. Tide user and founder of Social Circle, Kirstie Smith says she spends ‘just 30 minutes a week on finance admin. For freelancers and small businesses, being able to do simple tasks like invoicing via the Tide app means less time doing admin and more time to do what you love — running your business.’ This is a core component of Open Finance’s capabilities and Tide’s focus on small businesses demonstrates the opportunities to move beyond accounts to broader finance including invoices, wages and more.
Wagestream allows employees to access the money they have earnt, before pay day, aiming to reduce financial stress and cashflow shortages that often lead to debt.
Employees can make withdrawals from their pay and then anything left is paid at the end of the month as usual. As the money is the employees’, there are no loans as Wagestream wants to reduce employees’ reliance on such services. Backed by financial charities, this company is on a mission to improve workers’ financial health and welfare and incorporate all UK companies in their network.
Wagestream is a unique fintech seeking to break the payday culture and employees’ month-to-month living. By allowing workers access to their own funds, reliance on payday loans will decrease and financial stresses will be eased, improving finance for employees and employers alike.
Truelayer provides the infrastructure for other fintech companies to develop Open Banking technology that aligns with regulations and is secure.
Truelayer allows data sharing across a number of platforms to promote the creation of innovative applications and uses APIs to maintain strong practices for users. This has aided the Open Banking agenda by allowing new companies the same development tools and will continue to see growth as Open Finance expands.
Truelayer has revolutionised the fintech industry by unlocking Open Banking for many businesses. This increases competition and levels the playing field between start-ups and big tech companies. Innovative products are developed and implemented through Truelayer, with the knowledge they are secure and credible.
Plum provides a range of financial services for users such as savings, investment and pension management.
Plum analyses how consumers use money and suggests amounts to move into a savings account. Similarly, the app evaluates spending on bills and suggests alternative services so consumers are not being overcharged on everyday spending. Investments can be made from as little as £1 with regular insights to help grow your money.
Plum optimises the function of Open Finance by bringing a range of consumers’ financial information in one place. Consumers then have actionable insights and are able to move and use their money to their advantage. Plum will continue to push the Open Finance agenda and bring more functions together for the convenience of consumers, paving the way for stronger financial services.
mmob as a disruptor
mmob joins these companies in seeking to use the opportunities of Open Finance and disrupt the fintech industry.
Using our Intelligent Partnership Platform, customers of our partners are connected to third-party providers that will enhance the value of their service and ensure seamless customer journeys. What makes mmob unique is that the platform aids a variety of industry verticals due to a wide portfolio of third-party partners that promote customer loyalty and give companies a competitive advantage.
While other financial institutions are developing the Open Finance agenda, our platform is the only solution-driven platform that addresses issues currently faced by commercial, independence and access considerations.
Fintech in the UK is full of companies developing new products and utilising the opportunities of Open Finance. mmob look forward to seeing these companies develop and following in their footsteps.