In the previous post the figures and predictions for FinTech funding through 2015 to 2017 were discussed. Henner Diekmann and other investors will be buoyed by the news that, despite a shaky 2016 across most of the world, experts are confident that this was just a blip and 2017 will see increased funding within the FinTech sector across the world. As a global financial centre, London produces many hot new start-ups. Here you can find out more about some of the ones to watch throughout the coming year.
Atom Bank
One of the first to jump on the new digital-only banking bandwagon, Atom Bank markets itself to the new generation of internet-savvy consumers who want something different to traditional banking services. Licenced since June 2015, Atom Bank launched its mobile app in April 2016. Since that time added services include two-year fixed-rate residential mortgages, an SME business lending product and two Fixed Saver accounts, with current accounts planned for introduction later in 2017. £234 million in capital has been raised so far by Atom, including a recent £100 million venture round.
TransferWise
The new peer-to-peer platform for money transfers known as TransferWise was devised by Taavet Hinrikus, formerly of Skype in London. The platform offers currency conversions that are transparent and help customers avoid paying inflated exchange rates and hidden banking fees when transferring money into another currency. Authorised by the UK Financial Conduct Authority, TransferWise attained unicorn status in May 2016 with a valuation of $1.1 billion.
Nutmeg
Online wealth manager Nutmeg has so far raised £71 million, with investors including Pentech, Taipei Fubon and Armada Investment Group. Nutmeg works with investors with starting capital from as low as £500 and charges a management fee ranging from 0.3% to 0.95%, compared to an average of 1.58% for active fund management in the UK.
These are just a few examples of companies leading what will hopefully become a UK FinTech boom in 2017.
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