With its impressive spread of notable financial institutions such as Fidelity Investments and State Street Corp., along with numerous hedge funds and private equity firms, it’s no surprise that Boston has a robust financial industry. But as the city continues to grow its reputation as a hub for tech and innovation, Boston is also becoming known for its impressive fintech space.
Collaborating with the legacy financial sector, local entrepreneurs are creating new ways for people to to invest, pay, save, and more. Many of these fintech startups are proving to be game-changers for areas like personal finance, cryptocurrency, investment management, trading, and lending. Below we’ve pulled out 16 fintech leaders, in addition to startups to keep an eye on. We’re bound to have missed some awesome companies, so please send us an email with any we missed.
What they do: Circle is focused on creating a free and easy way to store and access money. They believe accessing and transferring money should be as simple as sharing media and messages over the internet. Headquartered in Dublin with offices in Boston, London and San Francisco, Circle has assembled a knowledgeable team hailing from JP Morgan Chase, Goldman Sachs, Amazon and Adobe.
How it’s changing finance: Unlike other management systems that are closed or restricted, Circle uses internet open standards and protocol that enables them to offer a free and unrestricted service.
Funding: $136 million
What they do: Domeyard LP is a hedge fund that focuses on high frequency trading.
How it's changing fintech: Domeyard uses advances in high-performance computing and data analysis to implement trading algorithms across assets like equities, futures, fixed income, energy and commodities.
What they do: EverTrue empowers fundraising teams with web and mobile software that identifies and manages their prospects.
How it's changing fintech: Over 300 nonprofit institutions with a combined $17 billion of giving data rely on EverTrue's platform.
Funding: $14.57 million
What they do: Flywire (formerly peerTransfer) is a leading international payments processor that connects institutions with consumers on over six continents.
How it’s changing fintech: Flywire has revolutionized how international students can pay for tuition and health care and is now welcomed in 900+ colleges around the world.
Funding: $43.2 million
What they do: Vestmark provides SaaS technology for comprehensive portfolio management and trading solutions.
How it's changing fintech: Vestmark is changing the financial advisory solutions industry with its innovative technologies and its clients currently manage over 1.7 million accounts with over $550 billion in assets under management.
Funding: $31.7 million
What they do: Kensho is a data analytics and machine intelligence company that combines natural language search queries and secure cloud computing to create analytics tools that a wide range of investment professionals can use.
How it’s changing fintech: Basically, Kensho’s super intelligent computer systems answer even the most complex financial questions in plain English.
Funding: $57.8 million
What they do: Centage is the leading provider of automated, budgeting and planning software catered to small and mid-sized businesses.
How it’s changing finance: Centage’s cost-effective and user-friendly solutions help companies move beyond Excel sheets and formulas, enabling them to produce more informed decisions and boost their ROI.
Funding: $23 million
What they do: Using a combination of smart tech and human experience, online insurance agency Goji helps users find the right policy at the best price.
How it’s changing fintech: Goji’s licensed insurance agents guide users through their options of insurance companies, costs, and coverage levels in a matter of minutes.
Funding: $89.2 million
What they do: AlphaPack acts as your own financial advisor, managing your wealth better than any professional could. To do this, the automated investment adviser creates a portfolio that’s tailored to your values and finances, providing advice that could improve your financial outcomes.
How it’s changing fintech: Integrating with banks and insurance providers so they can offer automated wealth advisory services quickly to customers, AlphaPack also ultimately helps improve a company’s customer service and retention.
What they do: Got Bitcoin? Alt-Options is the go-to platform for trading digital currency derivatives. Investors can use the startup’s pricing algorithm to make smarter trading decisions.
How it’s changing fintech: The founders of Alt-Options saw an opportunity to become an middleman in the emerging world of virtual currency. By connecting asset holders and investors with low-risk and low-cost strategies, Alt-Options solves the uber complex liquidity challenges virtual currency markets face.
What they do: Bison provides software that efficiently analyzes and monitors private market data and funds.
How it’s changing fintech: Bison has built a new way for investors in private equity or venture capital to receive and review data from prospective and existing managers so that they don’t have to spend countless hours making manual datasets.
Funding: $1.34 million
What they do: Blueleaf uses clients’ financial information to help financial advisors build profitable relationships.
How it’s changing fintech: Financial advisors have struggled to keep up with the rate of change technology demands, but Blueleaf helps the wealth management industry keep up with other sectors.
Funding: $1.9 million
What they do: Covestor (acquired by Interactive Brokers Group in April 2015) developed portfolio sync technology so investors can select investment management talents for online marketplaces.
How it’s changing fintech: Covestor is shaking up the investment management industry by letting investors easily compare and select from a transparent marketplace of investment management talent including top performing portfolio managers and successful investors.
Funding: $23.5 million
What they do: Elsen reduces the time it takes financial professionals and hedge fund managers to process data.
How it’s changing fintech: With a computing engine some 500 times faster than traditional processing units, Elsen drastically reduces the time it takes asset managers to extract and process intelligence from financial markets.
What they do: Fundraise.com provides online fundraising software for nonprofits, politicans, and individuals.
How it’s changing fintech: The platform lets anyone make a donation in 5 minutes or less without providing personal information like your credit card or bank account information.
Funding: $1.2 million
What they do: LeaseQ connects customers with instant quotes on equipment leasing, along with sources of financing, which users can apply for online. Equipment ranges from commercial fitness and tech, to construction and medical.
How it’s changing fintech: Equipment leasing quotes can take up to two days for customers to receive, so LeaseQ’s online marketplace drastically reduces the time companies waste leasing commercial equipment.
Funding: $3 million
What they do: Quantopian helps smart, talented people get paid for writing investment algorithms that work. In addition to a browser for writing code, the platform also features research and data sets, and hosts competitions each month for the best algorithms.
How it’s changing fintech: The small startup has a novel approach to investing that encourages any nerd or hacker writing code to use their unique skillset to trade stocks or invest.
Funding: $273.8 million
What they do: Socialsci provides an online community for academic researchers to collect data administering surveys and experiments.
How it’s changing fintech: Researchers using Socialsci save money using affordable research participants who are easily compensated with the platform’s built-in recruiting system and points.
What they do: Trefis is an easy-to-use stock analysis service that breaks down a stock price by the contribution of a company's major products and businesses.
How it’s changing fintech: By simply dragging lines on charts, users of Trefis can transform complex data models into visual interactives that forecast the future price of products and their future expected market share.
Funding: $2.13 million
What they do: Tripleshot helps institutional investor clients be more productive and successful by avoiding high-frequency traders and other market structure issues that typically cost them millions of dollars per year.
How it’s changing fintech: Though Tripleshot’s initial business was in U.S. stock markets, its unique solution can be applied to stock markets globally and to markets for other asset classes.
Funding: $5 million
What they do: YayPay helps small and medium-sized businesses get paid quickly and efficiently through a Software-as-a-Service (SaaS) platform that automates the accounts receivable process.
How it’s changing fintech: YayPay takes on the payment and administrative tasks that are typically dreaded by small business owners.