In 2019, UK fintechs attracted US$48 billion in funding, reaching a six-year excessive, in keeping with KPMG’s Pulse of Fintech H2’2019 report. The UK accounted for half of Europe’s ten largest offers and over 80% of the area’s total fintech funding of US$58 billion.
With the UK persevering with to guide the European fintech panorama, we glance at this time at 9 UK fintech startups to maintain an in depth eye on this 12 months.
These startups made notable strides in 2019, both by gaining the backing of notable traders, inking partnerships with key gamers, or increasing their consumer base, and their momentum is anticipated to proceed in 2020 and onward.
Based in 2015, Curve is a fee card that aggregates a number of fee playing cards by means of its accompanying cellular app, permitting a person to make funds and withdrawals from a single card.
Utilizing the cellular app, customers hyperlink their debit and bank cards to the Curve card. Transactions on the cardboard are processed by means of the MasterCard community and will be made utilizing EMV, magnetic stripe or contactless fee.
Curve has raised US$74.2 million in funding thus far, the most recent spherical being its Collection B in September 2019, in keeping with Crunchbase. The startup opened its first US workplace in December 2019 the place it plans to create 185 new jobs by 2024, and make investments US$17 million in analysis and improvement (R&D) over the subsequent decade.
Based in 2014, Thought Machine has constructed a core banking answer completely within the cloud. This answer, Vault, permits established and challenger banks to compete within the cloud-native period, enabling them to achieve increased ranges of scalability, resilience and safety.
In 2019, Thought Machine introduced a serious enlargement plan in Asia Pacific (APAC) with the opening of Thought Machine Singapore. The startup might be launching in North America later this 12 months.
Thought Machine raised a US$83 million Collection B funding spherical in March 2020, which it stated it might use “to develop quickly sufficient to serve all our goal markets” and make investments into its core know-how. It counts amongst its shoppers the likes of Lloyds Banking Group, Commonplace Chartered, SEB and Atom Financial institution.
Based in 2015, Tide supplies enterprise present accounts and sensible monetary administration companies to over 150,000 small-business homeowners by means of its mobile-first platform. Customers can arrange an account in only a few minutes and Tide will be totally built-in into most accounting programs.
In 2019, Tide launched new services and products, together with Tide Plus, an upgraded enterprise account providing, and Tide Capital, a subsidiary firm permitting Tide to supply its personal credit score merchandise. The startup additionally raised a US$54.three million Collection B funding spherical, which it stated it might use to extend its share of the UK enterprise banking market, in addition to to assist its deliberate worldwide enlargement.
Tide just isn’t a financial institution, however a enterprise banking platform. The corporate is headquartered in London with workplaces in Sofia, Bulgaria, and Hyderabad, India.
Based in 2016, TrueLayer is an open banking API supplier. The corporate presents two merchandise for companies: Information API and Funds API, which permit functions to attach securely with the top person’s financial institution with a view to learn their monetary information, provoke funds, or confirm their identification.
Final 12 months, the corporate established a presence in Australia, marking the start of its enlargement to APAC. It additionally inked a partnership with Visa, enrolled new shoppers together with challenger financial institution Tandem, and raised US$35 million from Tencent and Singapore government-owned Temasek.
Cleo AI (Cleo) is a synthetic intelligence (AI)-powered chatbot that helps customers handle their funds, both by way of the Cleo app or Fb Messenger, and thru integration with Amazon’s Alexa and Google’s Google House.
In mid-2019, Cleo took enterprise debt from US-based TriplePoint Capital. Sources advised TechCrunch that the necessity to increase debt financing was partly associated to Cleo Plus, the startup’s stealthy premium providing set to launch extra extensively quickly. The brand new product would provide Cleo customers a variety of perks, together with rewards and an elective £100 money advance.
Cleo reached three million customers in March 2020, and is trying to develop to North America, different elements of Europe, Asia, and Australia quickly.
Based in 2016, Extracover is the operator of Zego, an insurtech platform targeted on versatile and on-demand insurance coverage protection to the gig economic system for segments that embody ride-hailing, journey sharing, automotive rental and scooter sharing. The corporate additionally has a business-to-business (B2B) providing for which it has partnered with Uber, Deliveroo and Stuart, amongst different corporations, enabling them to supply its companies to their drivers.
In 2019, Zego launched in Spain, France and Belgium, launched a brand new pay-per-mile fleet product, raised US$42 million in a Collection B funding spherical, and secured its personal insurance coverage license, changing into the primary insurtech within the UK to have the ability to underwrite its personal insurance coverage merchandise.
Based in 2015, Habito is a digital mortgage dealer that has helped over 180,000 homebuyers to supply a mortgage or swap to a greater one. Habito’s algorithm analyzes 20,000 mortgages from over 90 lenders to seek out the best choice for patrons.
Final 12 months, the corporate started direct lending by way of its personal vary of mortgage after receiving regulatory approval, and raised £5 million in a funding spherical. It additionally launched an open mortgage API, and inked a number of partnerships with corporations that embody Affect and Moneybox+.
This 12 months, Habito launched a brand new residence shopping for service referred to as Habito Plus which mixes brokerage with property surveys and all the mandatory authorized work to finish a typical residence buy.
Based in 2015, Everledger is a startup leveraging blockchain, synthetic intelligence (AI), clever labelling and the Web of Issues (IoT) to create a digital report of an asset’s origin, traits and possession. The corporate digitally streamlines shoppers’ compliance processes to assist them reveal the lifetime story of an asset with larger effectivity and accuracy.
In 2019, Everledger closed a US$20 million Collection A funding spherical led by Tencent, launched the world’s first blockchain for coloured gems, and labored with Accenture, Mastercard, Amazon Net Companies and Mercy Corps on a brand new round provide chain functionality.
This 12 months, Everledger started monitoring uncommon earth minerals together with cobalt and lithium, and its CEO and founder Leanne Kemp, joined the Organisation for Financial Cooperation and Growth (OECD)’s new blockchain skilled group.
Based in 2015, Jaja Finance is a mobile-first enterprise offering digital and bodily bank cards and different financing companies. The corporate operates a web-based finance platform providing digitally-led merchandise with a concentrate on simplicity, performance, service and safety. Jaja Finance’s providing features a digital pockets and its accompanying card, international forex trade companies, in addition to “close to immediate” credit score selections leveraging AI.
In 2019, Jaja Finance raised £20 million in a Collection B funding spherical and £4.9 million in an fairness crowdfunding marketing campaign. The startup additionally made headlines when it acquired the UK bank card portfolio of Financial institution of Eire, which incorporates quite a lot of key accounts protecting the AA, the UK’s Car Affiliation, the Publish Workplace, in addition to a card branded Financial institution of Eire itself.