The $1.7 trillion U.S. financial services industry is being fundamentally reordered as a tsunami of technology disrupts the way we save, invest, spend and borrow. Worldwide, $18.9 billion poured into fintech startups during the first nine months of 2016, up from $17.6 billion in the same period last year, according to Accenture. With so much action, it’s no surprise that 22 companies are new to our second annual Fintech 50 list, which was culled from an initial list of 300 startups. Candidates had to have operations, but not necessarily headquarters, in the U.S. Our list excludes publicly traded companies and their subsidiaries, as well as established financial players that are privately held.
Digital Reasoning Nashville
Originally sold machine-learning software to the U.S. Army so it could scan text communications in Afghanistan for intelligence and threats to troops. Now Digital Reasoning’s Synthesys technology is used by top financial firms to screen their employees’ e-mail, instant messages and phone conversations for signs of insider trading and other misconduct. (Read more on Digital Reasoning.)
BONA FIDES: Used by Goldman Sachs, UBS and Steven A. Cohen’s Point72 Asset Management
FOUNDER & CEO: Tim Estes, 37, started firm while a 20-year-old University of Virginia philosophy major. “We are in the unstructured data area in compliance because people talk before they act,” he says
FUNDING: $70 million from Goldman Sachs, Credit Suisse, Nasdaq and others
THREAT TO: Behavox, Palantir, HP Autonomy
To see full list and read full article, click here.