Rising fintechs to watch

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Interesting article from Sifted, focusing on smallish consumer-facing UK Fintechs in 9 different categories (with smallish defined as those who have raised less than £35 in funding to date - ruling out the likes of Monzo, Starling, Revolut, Transferwise, and OakNorth):

I’ve tried 4 in the list (Jaja, Cuvva, Brolly, Plum) but there were quite a few I hadn’t heard of.

I’m surprised the list didn’t include any fintechs that focus on small/freelance business finance (e.g. Coconut), but perhaps they don’t consider them consumer facing. Also surprised no mention of Freetrade, preferring to highlight Plum instead.

What are your thoughts on the list?

What other smallish fintechs do you think should be considered as ‘ones to watch’ (regardless of whether or not they are UK-focussed or consumer-facing)?

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I was surprised JaJa had so many employees. Suppose it’s more to do with things other than their credit cards

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Perhaps. They did after all power a working product (ASDA flexible payments) before they started their credit card beta.

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Jaja also bought Bank of Ireland’s UK credit card business so could have gained staff that way.

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Honestly, Farewill seems like the most interesting. I despised Plum when I last tried it.

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45 isn’t that many. They will have 100’s once they start issuing Post Office/AA cards…

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Agreed with your remark on Coconut! I’ve only heard great things about them, should of made it on the list!

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Does anyone know of a rising FinTech that’s core focus is on sustainable investing, I’m looking to open up a ISA, want my money to work hard for me now! But I would like invest in more climate friendly companies, any recommendations would be appreciated!

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Have you looked at Tickr?

https://tickr.co.uk/

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I have not, will do, thanks.

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So over the weekend, I’ve been doing some searching. Managed to come across a new player, Clim8 Invest (quirky name). Look’s as though they’re all about sustainable investing in the right way and that’s all they do. Has anyone heard of this player before?

I’m keen to find out more about Clim8 Invest.

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Not heard of Clim8 before but I’ll check them out. Tickr I feel is the most prominent fintech in this space. Triodos are another option, though not really fintech.

I have issues with such platforms though, because ethical can often be subjectively applied, so something someone finds ethical may not be to someone else. In my opinion, many of the companies selected to invest your money (especially in the case of Triodos) aren’t usually ethical in the areas I want them to be in, or will be ethical in some aspects, but not in others. There’s a checkbox list of criteria usually, and a company usually only has to meet one of those to be included in the funds. For that reason I prefer to go it alone and research and choose my own investments via Freetrade (formerly I used Barclays). There are other fee free platforms for this too, such as T212, which have a broader universe of stocks available.

I’ve found diy investor’s blog a great resource in following their journey of transition their portfolio to be fully in sustainable stocks and funds.

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I completely agree with you regards to what does ethical really mean? Before I signed up to Clim8 waiting list, I did some snooping around and found an interesting interview with 11:FS and the founder of Clim8, talking about companies green washing with 11:FS - https://www.youtube.com/watch?v=DTLoY23qWKw&t=1137s

Thanks for letting me know about the other players, will check them out too!

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The original fintech, Hargreaves Lansdown, appears to still do the trick well…

I also tried Nutmeg but I was fooled by the fact it works through an app - seemed a bit clunky behind the scenes.

I think it could be a huge gap in the market though - climate and wider ESG is becoming more and more of a focus in the UK and Northern Europe.

If anyone has a good one I’ll be checking them out!

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Just found Tymit, suggested to me as an ad on Instagram. Based on how short the FAQ section is, I would assume they are new as well. Has anyone tried it yet?

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Tymit definitely need to work on their product before it’s ready for a mass rollout

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Oh, I did not know that it got discussed on this forum. I will take a look over the discussion over there. Thanks for the link. :grin:

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@Tobes @CuriousGeorge Thanks both for sharing these names. Would you say that ESG or green investing is the next “big thing” in Fintech? :thinking:

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I think ESG is definitely a big focus for asset managers in general and regulators are driving it hard too (at least the previous BOE governor was…could change with the new one I guess).

However, is it the next thing for Fintech? I’d like it to be but I’m not sure - pulling people away from their current managers is going to be tough but if the product is good enough then I don’t see why not.

Issue is that existing players can just switch things into ethical funds and compete with lower cost base.

But that kind of negativity is why I’m an accountant and not an entrepreneur!! :joy:

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I think so as it is the way forward - an interesting piece from the Guardian on this.

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