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Innovative Fintech Startups to Watch in 2023

Fintech, or financial technology, is the term used to describe the use of technology to improve and automate financial services for businesses and consumers. Fintech startups are disrupting the traditional financial industry by offering new and innovative solutions for payments, lending, investing, insurance, and more. Fintech startups are also creating new opportunities for financial inclusion, social impact, and sustainability.

The fintech sector is expected to grow rapidly in the coming years, as more people adopt digital and mobile banking, e-commerce, and cryptocurrencies.

Some of the top trends in fintech in 2023 are:

Banking-as-a-Service (BaaS): BaaS is a model that allows fintech startups to offer banking services such as accounts, cards, payments, and lending without having to obtain a banking license or build their own infrastructure. BaaS enables fintech startups to focus on their core value proposition and customer experience, while leveraging the expertise and regulatory compliance of established banks.

Embedded Finance: Embedded finance is the integration of financial services into non-financial platforms such as e-commerce, social media, or gaming. Embedded finance allows users to access financial products and services seamlessly within their preferred digital environment, without having to switch between different apps or websites.

Decentralized Finance (DeFi): DeFi is a movement that aims to create an open and transparent financial system that operates without intermediaries or central authorities. DeFi leverages blockchain technology and smart contracts to enable peer-to-peer transactions, lending, borrowing, trading, and investing. DeFi offers users more control, access, and efficiency than traditional finance.

Artificial Intelligence (AI) and Machine Learning (ML): AI and ML are technologies that enable computers to learn from data and perform tasks that normally require human intelligence. AI and ML are transforming fintech by enhancing customer service, fraud detection, risk management, credit scoring, personalization, and automation.

Green Finance: Green finance is the provision of financial products and services that support environmental sustainability and social responsibility. Green finance includes green bonds, green loans, green mortgages, green insurance, green crowdfunding, and green investing. Green finance helps fintech startups to align their business goals with the global agenda of combating climate change and promoting social justice.

With these trends in mind, let’s take a look at some of the most innovative fintech startups that are making waves in 2023.

Synctera

Synctera is a BaaS platform that connects community banks with fintech startups. Synctera enables community banks to expand their customer base and revenue streams by offering their banking services to fintech startups. Synctera also helps fintech startups to launch their products faster and cheaper by providing them with a compliant and scalable banking partner.

 

Synctera was founded in 2020 by Peter Hazlehurst, former head of Uber Money. The startup has raised $50 million in Series B funding led by Fin VC2. Synctera’s clients include Sable Card (a digital banking platform for immigrants), One (a holistic banking platform for middle-class families), and Cheese (a digital banking platform for Asian Americans).

Rapyd

Rapyd is a global fintech-as-a-service platform that enables businesses to accept and send payments across borders. Rapyd provides a single API that integrates with over 900 payment methods in over 100 countries. Rapyd also offers other financial services such as identity verification, card issuing, disbursements, and compliance.

 

Rapyd was founded in 2016 by Arik Shtilman, Arkady Karpman, and Omer Priel. The startup has raised $770 million in total funding from investors such as Target Global, Spark Capital, Coatue, General Catalyst, and Stripe1. Rapyd’s valuation is estimated to be between $8.75 billion and $10 billion.

 

Rapyd’s clients include e-commerce platforms, marketplaces, gig economy platforms, remittance platforms, and digital wallets. Some of the use cases of Rapyd’s platform are:

 

Enabling cross-border e-commerce by allowing merchants to accept local payment methods and currencies from customers around the world.

 

Facilitating peer-to-peer money transfers by allowing users to send and receive money using their preferred payment methods and currencies.

 

Empowering gig workers by allowing them to receive payments from multiple platforms and withdraw funds using local cash networks or cards.

 

Streamlining business payouts by allowing businesses to send payments to suppliers, partners, and employees using various payment methods and currencies.

 

Rapyd’s vision is to create a unified global payment network that can support any payment scenario and any payment method. Rapyd aims to simplify the complex and fragmented payment landscape and make it accessible and affordable for everyone.

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