With so many consumers still unsure about how to make investments, it would seem that saving for retirement or getting the most from our money continues to be a significant challenge. Loans, albeit improving with more options, still pose challenges for certain demographics. That’s when a need developed for disruptive fintech companies that could provide solutions.
We have the millennials to thank, however, for pushing changes to the investment and lending landscape. In financial matters, millennials want to have control and influence with their own money, and have it on their terms. Millennials have the technology that they have grown up with, and this makes a difference in the rearrangement of the financial space.
Here are six disruptive fintech companies that make investing and loans easier for everyone:
1. Fundera
As one of the top disruptive fintech companies out there, Fundera provides a way to compare multiple business loan options at one time. This approach to searching for funding not only saves time, but it also reduces the amount of money you may have to pay to get that loan. There is a great need for this type of lending platform, especially for small business owners who are struggling to figure out where they can find lenders who are willing to work them.
Fundera also offers a specialist to work with a small business owner to guide their decisions every step of the way. That means less risk for the lender and borrower, ensuring a higher rate of repayment and a reduction in the risk that the business owner is assuming. The company has helped over 5,500 businesses to fund their expansion and growth objectives.
2. 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 disruptive fintech company offers.
3. Yield Street
YieldStreet is an online marketplace that connects investors and borrowers with investment opportunities and capital. While that sounds pretty straightforward, there’s much more to what the company is doing.
However, they are opening up the world of investing in ways that were never available before. Previously, there were high investment minimums and long terms for any type of alternate investment. It was only open to a select few who knew where to look.
Now, Yield Street has created a way for anyone to get passive income from alternate investments with a very small minimum and short term. For that, these investors can then enjoy investments that have 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 for anyone.
4. 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, which 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, which is diversified across thousands of stocks and bonds for a guaranteed return.
5. 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. Also, you’ll receive numerous projections and tracking reports to improve your investment knowledge.
The app also connects all your accounts. There are over 170 integrations with banks and investment firms. This gives you one big picture of your investments right from your mobile device.
6. Robinhood
The aptly named app illustrates that investing doesn’t have to be for the rich. Instead, nyone 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. You’ll also see what impacts the stock market. Other features include real-time updates about dividends, stock splits, and upcoming initial public offerings (IPOs). Then, you can immediately make a move.
More Disruptive Fintech Companies to Come
It just proves that technology can positively impact any business and disrupt traditional processes. In this way, opportunities grow for more people to make the best financial choices. These incredible fintech companies were born out of frustration for the status quo. They have inspired other entrepreneurs to develop more exciting products and services. The future looks bright for fintech solutions to help consumers and businesses enjoy greater convenience, security, and value.
