The fintech ecosystem is loaded with disruptive ideas and companies, though perhaps none more so than those in the lending sector.
Fintech lending companies use technology like artificial intelligence, big data and even blockchain to make life a lot easier for both borrowers and lenders alike. They give lenders fast access to the data they need to approve loans, and help borrowers get their money faster than walking into a brick-and-mortar financial institution.
Fintech lending solutions also provide borrowers with tools to monitor their financial health, compare rates to ensure they get the best deal and keep up with payments to build toward a healthy credit score. And they bring financing options to traditionally underserved populations by expanding geographic access and letting lenders collect information from non-traditional sources to determine creditworthiness.
What Is Fintech Lending?
Fintech lending relies on technology and digital solutions to facilitate the process of seeking out, applying for and repaying loans. These web- and app-based services help students, homeowners, businesses and underserved communities access financing options quickly and efficiently.
These innovations are changing the financial services landscape for both lenders and borrowers. We’ve rounded up fintech companies that are at the forefront of intelligent lending.
Fintech Lending Companies to Know
Location: San Francisco, California
Through Empower’s mobile app, users can access cash advances of up to $300 without having to worry about interest or credit checks. Empower customers who need to build their credit history can use the company’s Thrive solution to apply for a line of credit ranging from $200 to $400, and they can choose a repayment plan that suits their individual circumstances.
Location: San Francisco, California
Kikoff offers credit building solutions meant to support consumers’ financial goals. Its credit account offering lets members finance purchases and sets them up with low monthly payments so they can make on-time payments to help with improving their credit scores. The Kikoff Secure Credit Card can also give members early access to their paychecks and protect them from overdraft fees.
Location: Boston, Massachusetts
Hometap facilitates a loan alternative for homeowners looking to be paid for equity today. The company provides homeowners with cash and in exchange, Hometap receives a share in the future value of the home. Once the home is sold or the owners settle their investments, the company is paid out for the share.
Location: Fully Remote
Scratch Financial specializes in medical financing solutions. Borrowers can use their phone or a desktop computer to apply for and select a payment plan that suits their budget and doesn’t include prepayment penalties or deferred interest. The company says its technology saves medical practices time and money and improves the patient experience.
Location: New York, New York
January is a fintech company aiming to change the way debts are collected. It works with lenders and debt buyers, providing them access to a tech platform for engaging borrowers who are behind on payments and giving them options for getting back on track. The company says its “humanized debt collection” process boasts better debt recovery rates than traditional collection methods and incorporates compliance automations to ensure applicable regulations are followed.
Location: Arlington, MA
Leader Bank is client centered and eager to embrace new applications of technology, like video banking, where live agents troubleshoot issues with clients via video and screen sharing. Offering all standard banking services like personal checking and savings, business banking, insurance and loans, the company has positioned itself as an alternative to traditional financial institutions that also offers more safety and services than a neobank.
Location: Chicago, Illinois
Alliant Credit Union is a nonprofit organization that provides a full suite of consumer and business financial services, including checking and savings accounts, loans and line of credit, in a cooperative model that gives every member an ownership stake. The credit union is notable for being fully digital, with a hybrid workforce that manages nearly $20 billion in assets.
Location: San Francisco, California
Upgrade offers a comprehensive suite of financial products to help consumers access affordable credit. The fintech company specializes in personal loans, credit cards and short-term fixed-rate loans for auto refinancing and home repairs. Upgrade also provides credit monitoring, checking and savings accounts to support its customers’ financial needs.
Location: New York, New York
Biz2Credit provides small businesses with equitable loans that help them acquire the funds needed to push their business forward. The online platform offers working capital loans starting at $25,000, term loans of up to $500,000 and commercial real estate loans of up to $6,000,000.
Location: New York, New York
Valon is a tech-enabled Fannie Mae and Freddie Mac-approved lender and homeowners insurance provider. The company calls itself a financial wellness platform that works to be a one-stop shop for prospective homeowners. Valon is disrupting the traditional home-lending process by streamlining inefficiencies to save buyers time, effort and money.
Location: New York, New York
Current offers solutions meant to help consumers build their credit and increase their savings. Using the Build Card, consumers can earn rewards and improve their credit history whenever they make daily purchases. Current offers money management tools to support budgeting along with an AutoPay feature that card holders can opt for to ensure their balance is always paid on time.
Location: Boston, Massachusetts
The lending process is one that has been stuck in pen, paper and postage transactions for too long, but Stavvy has a plan to set the new standard for digital servicing. The Stavvy platform was designed by banking, security and legal professionals to move processes along more swiftly when modifications are needed to avert foreclosure.
Remote signings, videoconferencing, encrypted document transfer, identity proofing and additional tools are all included within the platform. It also comes with the ability to connect with signers and notaries online to grant power of attorney, seal offer letters and complete more tasks faster.
Location: New York, New York
Brigit’s Instant Cash product gives users access to a cash advance of up to $250 without the burden of interest or fees. The company also offers its Credit Builder product that helps users apply for a loan and support them in setting aside money for monthly payments to improve their credit history.
Location: San Francisco, California
Chime specializes in online banking and money management solutions. Its offerings include checking accounts, Visa cards specifically designed to support credit building and high-yield savings accounts. The company’s SpotMe feature covers members on overdrafts of up to $200 without subjecting them to any fees. Chime automatically puts members’ next direct deposit toward paying off the negative balance.
Location: Chicago, Illinois
With its lending products and digital banking feature, NinjaHoldings challenges how Americans think about their finances. The company offers three products: CreditNinja, NinjaCard and EDGE. CreditNinja allows underserved demographics to receive personal loans; the product requires a minimum credit score of 500, making it easier for borrowers with low scores to receive cash. The NinjaCard is a full suite of online banking services while EDGE is for business, and the product offers payment processing, customer service and business analytics.
Location: San Mateo, California
Upstart offers loan solutions for personal needs, car refinancing, debt consolidation and short-term financial relief through its network of more than 100 banks and credit unions. The company says its personal loan options range from $1,000 to $50,000 and most of its borrowers get instant approval.
Location: San Francisco, California
SoFi’s mobile app can be used for banking, investments and loans. The company’s loan products include student loan refinancing, private student loans and personal loans for things like home improvement projects and weddings. Whenever they make “smart money moves,” SoFi also awards users with points they can redeem for cash, loan payments and more.
Location: Boston, Massachusetts
Stride Funding is a fintech company that offers alternative education financing for students and families. With funding models like income share loans, deferred tuition agreements and employer-sponsored loans, Stride uses alternative data sets and school-support funding to extend tuition support to students who don’t have the credit or cosigners necessary to secure traditional student loans.
Location: Boston, Massachusetts
Forward Financing is a provider of digital loans for small businesses. Sole proprietors and smaller businesses often lack available capital to support growth, carry the business through delayed payments and face other eventualities. Standard business loans are of limited value in these circumstances because the process to receive them takes too long. Through a fully online process, Forward Financing clients can access fast funds, available with a range of flexible terms.
Location: Chicago, Illinois
OppFi operates a fintech lending platform called OppLoans that helps people from a multitude of backgrounds acquire the funding they need to pay off debts, open businesses and get ahead in life. OppLoans features easy access to online personal loans, bad credit loans, loans without credit checks, installment loans and resources on rates and terms, allowing people to choose the loan and rates that work best with their lifestyle.
Location: Denver, Colorado
Funding Circle’s online application and approval process for loans can get small businesses funding in 48 hours. With Funding Circle’s Business Term Loan, borrowers can receive as much as $500,000 with term lengths ranging from six months to seven years for repayment. The company has lent more than $18 billion to 120,000 companies across dozens of industries.
Location: Fully Remote
Affirm offers installment loans to consumers at the point of sale. Sometimes you really want something but don’t have the cash to pay upfront. Affirm has partnered with hundreds of retailers to offer payment plans that help customers plan out their spending over time.
The Affirm installment loan platform has been used by global companies like Expedia, Wayfair and Peloton to give customers more financial flexibility.
Location: San Francisco, California
LendingClub provides personal loans of up to $40,000 as well as business lending options. For personal loans, the company says the online application takes minutes and approvals often happen within 24 hours. LendingClub can deposit money into a bank account for those who are approved or pay creditors directly.
Location: New York, New York
Gynger is an alternative financing fintech platform that offers up-front funding to companies to finance their software expenditures. The onboarding expenses for a “tech stack,” meaning all the software and software-as-a-service that a company needs to start operations, can be significant. Gynger works with companies to cover those expenses in the short term by underwriting lines of credit and debt financing.
Location: Chicago, Illinois
Supernova Technology serves banks, insurance companies and online brokerages with automated digital solutions for securities-based lending. The company says its software covers everything from simplifying application and payment processes to allowing clients 24/7 access to a dashboard with details on their loan status.
Location: New York, New York
LoanStreet aims to make it easier for financial institutions — including credit unions, banks, lenders and loan investors — to manage their loan portfolios. Its platform is designed to streamline processes and provide reporting and analytics tools that lead to actionable insights.
Location: Austin, Texas
Self Financial is on a mission to help underserved individuals build their credit and reach their financial goals. With its credit builder accounts, the company allows individuals to make monthly payments toward their credit history while adding money to a savings account. All payments are reported to the three credit bureaus. Once the credit builder account is paid off, Self subtracts fees and interest then the savings are unlocked.
Location: Chicago, Illinois
Beyond Finance specializes in developing tailored solutions to alleviate and manage various forms of debt, including personal loans, medical bills, credit cards and private student loans. Through a consultation process, clients collaborate with Beyond Finance experts to select the most suitable debt resolution option, with progress tracking facilitated by the company’s mobile app. Beyond Finance uses proprietary technology to assess debt situations and devise strategies like consolidation or settlement to help consumers become debt free.
Location: Los Angeles, California
Local service providers and retailers use Sunbit to provide a buy-now-pay-later option for their communities. The company partners with businesses to offer the option in-store, online and through mobile devices. Additionally, businesses receive an account manager, employee training on the system and marketing signage. After being approved for financing, consumers can choose the length of the payment plan and track the plan through the app. Sunbit can be found in dentist offices, car dealerships and more.
Location: Chicago, Illinois
Avant uses fintech to simplify the loan application process. By providing some background information, selecting a loan option (debt consolidation, home improvement, emergencies, etc.) and signing a digital contract, loan seekers can expect to see $2,000 to $35,000 deposited into their bank account in as little as one day.
Avant also offers a credit card to help users access lines of credit for smaller purchases or larger payments for a new car or home repair.
