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Blog » Business Tips » 6 FinTech Companies Disrupting the Investment and Lending Landscape

6 FinTech Companies Disrupting the Investment and Lending Landscape

Updated on May 8th, 2023
FINTECH

With many consumers unsure about investing, saving for retirement or getting the most from our money is a significant challenge. Loans, albeit improving with more options, still pose challenges for certain demographics. In order to improve our world we need fintech, companies disrupting the landscape and helping society grow for the better.

We have the millennials to thank, however, for pushing changes to the investment and lending landscape because like all other financial matters, they want to do it on their terms with the technology that they have grown up with.

After influencing everything from payments to banking, millennials have turned their attention to investing and those developing technology; the industry has listened. Many fintech companies disrupting the landscape like these six that make investing and loans easier for everyone:

Acorns

Acorns proves that the spare change in your life can go toward something much better than collecting dust under the seat in your car or a jar in a kitchen cupboard. Instead, this extra money can be turned into investment vehicles that grow over time.

Technology disruptors like Acorns have created a new type of investing known as micro investing. Micro investing opens up the world of investments to anyone. All you do is connect your bankcard to the investment app and when you make purchases, it rounds the amount up to the nearest dollar and takes the change to use in your micro investment portfolio.

You can also set it for recurring deposits to grow your investments even faster with the extra money you add to it; this is diversified across thousands of stocks and bonds for a guaranteed return.

SoFi

With so many consumers and businesses becoming frustrated with traditional banks and lending institutions, it was time for a new kind of finance company that resonated with how people interact and make decisions today.

SoFi has delivered on that with the creation of what it has termed “social finance” in which it offers a range of lending and personal finance products, including life insurance, mortgage loans, personal loans, student loan refinancing and wealth management.

It looks at each customer differently and considers factors like education, career experience, monthly income versus expenses and financial history to match each person with the best product for their needs and situation. Members can interact and learn from each other as well as access additional information and recommendations through the social component this fintech company offers.

Yield Street

YieldStreet is an online marketplace that connects accredited investors and vetted borrowers with alternative investment opportunities and capital. While this sounds pretty straightforward, there’s much more to what the company is doing. They are opening up the world of investing in ways typically not available before.

Previously, there were high investment minimums and long terms for virtually any type of alternative investment. It was only open to a select few who knew where to look.

Now, Yield Street has created a way for accredited investors to get passive income from alternate investments across asset classes like real estate and legal finance with a potentially smaller minimum and shorter term. For that, accredited investors can enjoy investments that have generally outperformed stocks and bonds for the past couple of years.

In exchange for these investments, borrowers can tap into available capital they need to grow their businesses. What has developed is an investment platform aiming to build prosperity for all.

Openfolio

One of the most difficult aspects of investing is knowing where and what to invest. While you can do research or get an advisor, not everyone has the time or access to do so.

However, Openfolio is turning investing into a social activity where you can leverage everything that is good about social networks and use your peer group to teach you the best investment tricks. You can also connect with the app’s team of advisors to get assistance and advice on an on-demand basis; as well as receive numerous projections and tracking reports to help you better understand investing.

The app also connects all your accounts over 170 integrations they have with banks and investment firms. That makes it so you can have one big picture about all your investments right from your mobile device.

Robinhood

The aptly named app is a way to illustrate that investing doesn’t have to be for the rich; anyone can do it by eliminating expensive, excessive, and unnecessary trading fees.

Robinhood has leveled the investment playing field and has encouraged more people than ever to get involved in creating their own investment portfolio through this technology-driven brokerage. With market data and regular content updates, you’ll be able to learn more about what to invest in and what impacts the stock market. You can get real-time updates about dividends, stock splits, and upcoming initial public offerings (IPOs). This allows you to move on any of those actions immediately.

Fundera

Intent on revolutionizing the business loan space, Fundera offers a convenient and efficient way to locate the best lending options for your company — from startups to established small businesses to large corporations.  

The disruptive financing company has an online portal where you simply enter your preferred loan amount and a few details.

In as little as ten minutes, you can get approval and select from multiple lenders. They also offer a plethora of loan options to match your needs. This includes SBA loans, term loans, equipment and invoicing financing. Also merchant cash advance, business lines of credit, startup loans and credit cards.

 

Final Thoughts on FinTech Companies Disrupting the Landscape

It just proves that technology can positively impact business and disrupt the traditional processes. In this way, access and opportunities grow for more people to make the best choices with their money.

Like other current disruptive companies in other industries, these incredible fintech companies were born out of frustration for the status quo, pushing their founders to change what was possible.

Serenity Gibbons

Serenity Gibbons

Local Unit Lead for NAACP in Northern California with a mission is to ensure the political, educational, social, and economic equality of rights of all persons and to eliminate race-based discrimination. I enjoy writing and interviewing people making a difference in the World. Former Assistant Editor NY Times. NYU Alum living in sunny California.

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