2020 was a record-breaking year for many fintechs, with the COVID-19 pandemic only helping to accelerate growth. Restrictions and lockdowns around the world forced businesses and consumers to embrace digital solutions, and fintech podcasts grew, and fintechs saw an influx of new customers and most importantly, revenue. In 2020, on average fintech companies increased the number of transactions and dollar volume by 13% and 11% respectively. But which were some of the fintech companies who recorded the best growth? In this article, we’ll discuss four fintechs who recorded staggering growth in 2020.
Robinhood is a commission-free trading broker based in the USA. They are the fastest-growing brokerage in history and currently have $20 billion in assets under management.
The company recorded unprecedented growth in 2020, with their second quarter alone producing more revenue than all the revenue they made between 2015 to 2018. Despite good growth over the last few years, 2020 was the year that their customer base skyrocketed. They added 3 million in the first quarter of 2020, and they now have over 13 million users on their platform.
After 2020’s impressive growth, Robinhood has managed to hit an immense valuation of $11.2 billion. This growth has pushed Robinhood to launch an IPO in 2021, which will only further its valuation. Reuters believe that the IPO could value the company at more than $20 billion.
Chime is a US neobank that helps users achieve financial peace of mind. The company is currently the fastest growing fintech in the US and has over 10 million users.
The neobank recorded an increase of 25% in users in 2020, jumping from 8 million users to 10 million users. More impressively, the company generated more than $600 million in revenue in 2020, tripling what they made the previous year.
Chime is revolutionising how people manage their finances, and it’s no surprise that they’re the most successful challenger bank in the US. An IPO is very much on the cards within the next year or so.
Acorns is a robo-advisor that allows users to invest spare change from everyday purchases into a diversified portfolio. They are one of the leading US fintech companies with over 8 million customers.
They are another trading app that has benefited from the pandemic with the company recording an increase of 30% in new users. 2020 saw a rise from 6.2 million to 8 million customers.
The companies last funding round was in 2019, where they reached an 806 million dollar valuation. It’s now only a matter of time before the company achieves the coveted unicorn status.
Dave is another US neobanking platform that empowers Americans with all the tools they need to live stable financial lives. Although not as large as Chime, they do currently boast an impressive 7 million users.
Out of all the fintech companies we’ve covered so far, Dave recorded the largest percentage increase in new users. The company managed to achieve a 40% increase growing from around 5 million users to 7 million in 2020.
Dave is still a private company. However, there will come a time soon, when Dave goes public through a traditional IPO.