The 25 Hottest Fintech Startups to Watch in 2023

Fintech has been one of the fastest-growing startup sectors in recent years, with companies raising over $130 billion in 2021 alone. Leveraging cutting-edge technologies like artificial intelligence, blockchain, and data analytics, these innovative companies are fundamentally changing how we bank, make payments, get loans, buy insurance, invest, and more.

2023 promises to be another landmark year for fintech disruption. Adoption of digital financial services continues to accelerate, with over 65% of consumers now using a fintech product and neobanks projected to reach 55 million customers in the US. Blockchain-based decentralized finance (DeFi) platforms have seen explosive growth, with total value locked now exceeding $65 billion. And the COVID-19 pandemic has only heightened demand for contactless payments, online lending, and mobile-first financial solutions.

Against this backdrop, a new crop of ambitious fintech startups are emerging to further disrupt the status quo and expand access to financial services globally. Here are 25 of the most promising fintech companies to watch in the coming year, across seven key verticals:

Web3 & Crypto

The rise of Bitcoin and Ethereum has given birth to an entire ecosystem of fintech startups building the future of decentralized, blockchain-based finance. Key opportunities include crypto exchanges, wallets, compliance, DeFi lending protocols, stablecoins, and more.

1. TaxBit

• What they do: Crypto tax and accounting automation platform
• Why they‘re hot: Serving a critical need for the growing crypto economy. Already works with the IRS and integrates with major exchanges like Coinbase. Raised $130M Series B at $1.3B valuation.
• Founders: Austin, Justin and Brandon Woodward

2. Fireblocks

• What they do: Enterprise-grade platform for securely moving, storing and issuing digital assets
• Why they‘re hot: Used by top exchanges, banks and funds to protect $2 trillion+ in crypto assets to date. Raised $550M in funding from top VCs. Ambitious plan to "build the secure backbone for all future blockchain applications."
• Founders: Michael Shaulov, Pavel Berengoltz, Idan Ofrat

3. Chainalysis

• What they do: Blockchain data platform for investigating crypto crimes and ensuring regulatory compliance
• Why they‘re hot: The leading provider of crypto investigative services. Works with major exchanges, governments and banks. Raised $365M Series E at $8.6B valuation.
• Founders: Michael Gronager, Jonathan Levin

Payments

The $3 trillion global payments industry is ripe for digital disruption. Innovative fintechs are racing to make it faster, cheaper and more convenient to send and receive money around the world.

4. Stripe

• What they do: Developer-friendly online payment processing and business management platform
• Why they‘re hot: The undisputed leader in online payments with over $10B in annual revenue. Serves millions of businesses from startups to giants like Amazon. Valued at $95B.
• Founders: Patrick and John Collison

5. Chime

• What they do: Mobile-first banking with no fees, early paychecks, and automatic savings
• Why they‘re hot: The largest of the US neobanks with over 12 million users. Partnered with Visa, Walgreens. Valued at $25 billion after latest funding round.
• Founders: Chris Britt, Ryan King

6. Klarna

• What they do: "Buy now, pay later" platform for seamless installment payments
• Why they‘re hot: Europe‘s biggest private fintech at $46B valuation. 90 million global users, 15 million in US. Partnerships with over 250,000 merchants.
• Founders: Sebastian Siemiatkowski, Niklas Adalberth, Victor Jacobsson

Digital Banking

Neobanks like Chime, Revolut, and N26 attracted over 35 million users globally last year with mobile-first interfaces, low fees, and innovative features. The race is on to become the Amazon of banking.

7. Varo

• What they do: Full-service mobile banking with savings, lending and budgeting tools
• Why they‘re hot: The first US fintech to gain a national bank charter. Growing rapidly with over 4M customers. Raised $510M at $2.5B valuation.
• Founders: Colin Walsh, Kolya Klymenko

8. Revolut

• What they do: Europe‘s leading digital banking "super app" featuring banking, investing, crypto and more
• Why they‘re hot: 15 million personal users, 500k business clients. Available in 35+ countries. Sky-high $33B valuation and pursuing US expansion.
• Founders: Nikolay Storonsky, Vlad Yatsenko

Personal Finance

Fintech startups are helping consumers save, budget and reach their financial goals with automation, artificial intelligence, and behavioral science.

9. Digit

• What they do: AI-powered automatic savings and investing app
• Why they‘re hot: Analyzes spending to optimize saving for each user. Saved $5B+ for customers to date. Acquired for $212M by Oportun.
• Founder: Ethan Bloch

10. Truebill

• What they do: Subscription tracking and bill negotiation
• Why they‘re hot: Helps customers save over $100/year on bills. Used by 2.5M+ people to track $50B in spending. Earned $100M revenue in 2021, acquired for $1.3B.
• Founders: Yahya and Haroon Mokhtarzada

Alternative Lending

Over 50 million US adults lack access to traditional credit. Fintech lenders are expanding access and lowering costs with new data and underwriting models.

11. Upstart

• What they do: AI lending platform enabling banks to underwrite more loans
• Why they‘re hot: 70% lower loss rates vs. traditional models. Originated $11.8B in loans in 2021. Valued at $12B in IPO.
• Founders: Dave Girouard, Anna M. Counselman, Paul Gu

12. Tala

• What they do: Mobile lending for underserved consumers in emerging markets
• Why they‘re hot: Expanded access to credit for 6 million people globally so far. Repayment rates over 90%. Raised $350M at $800M valuation.
• Founder: Shivani Siroya

Investment & Wealth Tech

These fintech startups are democratizing access to investment advice, lowering fees, and tapping AI to optimize returns for a new generation of investors.

13. Robinhood

• What they do: Commission-free investing in stocks, crypto, and more
• Why they‘re hot: Kickstarted the retail trading boom with gamified, user-friendly app. Over 18M funded accounts. IPOed at $32B market cap.
• Founders: Vlad Tenev, Baiju Bhatt

14. Betterment

• What they do: Automated, low-cost ETF portfolios tailored to each user
• Why they‘re hot: Pioneer of the "robo-advisor" model. Manages over $30B in assets. Raised $435M in total funding.
• Founders: Jon Stein, Eli Broverman

Insurtech

The $1.4 trillion US insurance market remains bogged down by slow, manual processes. These startups use AI, big data and mobile-first design to reduce friction and expand coverage.

15. Next Insurance

• What they do: Digital small business insurance tailored to over 1,000 unique professions
• Why they‘re hot: Using AI and big data to streamline underwriting. Serves over 300k small businesses. Valued at $4B.
• Founder: Guy Goldstein, Alon Huri, Nissim Tapiro

16. Lemonade

• What they do: AI-powered insurance platform starting with homeowners and renters insurance
• Why they‘re hot: Among the first to use AI chatbots to sell insurance. Donates leftover premiums to charity. Went public at $3B valuation.
• Founders: Daniel Schreiber, Shai Wininger

While these 16 startups represent some of the brightest rising stars in fintech, the field remains fiercely competitive with thousands of players vying to stake their claim. And the major tech giants are circling too, with Apple launching a credit card, Google debuting checking accounts, and Facebook continuing to push into payments and commerce.

Ultimately, the fintechs that stand the best chance of success will excel on three key fronts:

1. Delighting customers with simple, engaging user experiences that build loyalty
2. Moving fast to capture market share and build network effects in a rapidly evolving landscape
3. Forging smart partnerships with both financial institutions and other tech platforms to achieve scale and navigate complex regulations

One thing is clear – fintech is just getting started. As the digital transformation of financial services kicks into overdrive, the most visionary entrepreneurs will have a once-in-a-generation opportunity to help create a more accessible, affordable and equitable financial system. The 25 trailblazing startups on our list are leading the charge – and will be well worth watching in 2023 and beyond.