Top financial technology (fintech) companies are developing innovative commercial banking solutions at a rapid pace. From recent fintech startups to established fintech companies, an increasing number of commercial banking providers are revolutionizing the financial industry.
A number of large fintech software companies are adding innovative commercial banking solutions to their portfolios in 2019. Here is a guide to the 15 top fintech companies catering to the commercial banking sector.
Major Players Offering Commercial Banking
1. Plaid
Founded in 2013, Plaid connects various payment apps and other services to customers’ bank accounts for fast, automated payment authorizations. The company is reportedly now valued at $2.7 billion, and is connected to about 10,000 banks.
2. Ripple
Best known for cryptocurrency, Ripple is developing a “blockchain-based global settlements network” to compete with SWIFT, the decades-old messaging platform that is used by nearly every bank in the world.
3. Fiserv and First Data
These two fintech software companies have recently merged to form a venture worth a reported $22 billion. First Data is a payments processing system. Fiserv develops a variety of system applications for banks and credit unions.
4. Chime
San Francisco-based Chime offers a mobile banking service with checking, deposit and debit accounts as well as other services. As of early 2019, it already had 2.6 million accounts and was adding new accounts at a rate of 350,000 per month.
5. Stripe
Stripe is one of the fastest-growing fintech companies. It started in 2011 with a payment processing service, and is now worth some $22.5 billion. New products being launched by the company this year include a credit card issuing system that can be deployed by commercial banks, small banks and credit unions, or larger retailers, a POS software package and a payments platform for subscription businesses.
6. Xero
Founded in New Zealand in 2006, Xero, the Software as a Service (SaaS) provider is expanding on its original product offering of online accounting software for small businesses, and expanding its market to U.S. and European bank and business customers. Using the platform’s reporting features, customer financial information can be instantly accessed by automated lending platforms for small business loans.
Commercial Banking Startups to Watch
Several exciting fintech startups have rolled out innovative commercial banking solutions in 2019, and some of them may have the potential to shake up the market.
7. TrueLayer
Based in the UK, TrueLayer develops application programming interfaces (APIs) for financial services companies in Europe and the U.S.
8. Odessa Technologies
Odessa Technologies produces a system called LeaseWave Suite. The program is a browser-based, end-to-end management system for loans, leases and assets. One advantage the system gives lenders, according to the company, is that it makes tracking and management of movable assets (such as equipment and vehicles) used as collateral much easier.
9. Cross River
Cross River is an actual bank. It started as a community bank in northern New Jersey, and has used its status as an FDIC-insured entity to offer settlement systems and loan funding for other fintech companies.
10. Even
Even: this Oakland, California-based company offers a budgeting and savings mobile app that connects to customers’ bank accounts. On the banking side, the app allows banks to establish another customer service interface, offering tailored, pre-approved products and services through the app.
11. Volt Bank
Perhaps an example of the future of banking in general, Volt Bank became licensed as Australia’s first “neobank” in January. The fully digital bank offers a number of retail banking services, and is reportedly planning to roll out business lending services next year. The company has recently begun cultivating partnerships with commercial banks in Australia, Asia and the U.S.
12. Enterprise Software and Technologies
Enterprise Software and Technologies has developed a management system for microfinance institutions called CoBIS. The management suite is useful for commercial banking, as it allows a bank to launch a separate microfinance business without a large investment in system infrastructure.
13. Nova Credit
Provided by San Francisco-based Nova Credit, this service gathers credit reporting information from other countries, such as Canada, India and Mexico, for customers such as new immigrants who have not yet established US credit scores. Originally intended for landlords and non-bank lenders to help them screen foreign applicants, the program is now being developed to integrate with banks’ automated loan generation and underwriting systems to help them expand their businesses.
14. ieDigital
ieDigital provides a system called Interact, which is designed to provide efficient communications between the customer contact center and the back office. This allows for much faster resolution of customer concerns, and the platform facilitates data-sharing among different departments in the bank.
15. Millennium Information Solution
This company has developed a banking management solution called Ababil, which is specifically designed for Islamic finance. For banks considering offering products to this relatively new market, the system is an affordable way to get started.
New applications being developed in the fintech space can help commercial banks enhance their processes and improve efficiency with the help of the latest technology. Fintechs, particularly startups, also serve as digital partners that help commercial banks extend their reach while keeping costs low.