Data released by the Financial Solutions Lab (FinLab) shows the fintech industry is continuing to evolve.
FinLab is a five-year program managed by the Center for Financial Services Innovation with a $30 million grant from JP Morgan Chase. Its goal is to identify, test and bring to scale promising innovations to help Americans increase savings, improve credit and build assets.
When FinLab put out the call for applicants for its second year, 356 fintech startups applied for one of nine spots. Together those companies serve 4.2 million Americans, have raised more than $420 million of external capital, and employ 2,293 people.
Those companies were analyzed to determine in which directions fintech is headed. Products are more complex. Fewer companies are developing planning tools and are instead focusing on complex sectors such as credit, insurance and payments.
A second trend confirms that the continued development of technology makes it feasible to address problems which affect smaller population segments. More companies are focusing on unique populations.
More fintechs are using employers to quickly scale, with the exchange being employers see tap the sector for cost-effective and efficient solutions to a host of problems.
Savings products are a clear priority for these companies, as close half are developing savings products.