Fintech Marketplaces: All You Need to Know for a Quick Start

The fintech market expands, and marketplaces are evolving along with it. 

64% of customers have used at least two fintech services in 2019. Moreover, recent statistics show that the pandemic has led to the acceleration of cloud services and similar solutions for the fintech industry.

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A quick and convenient way to get the best products is gradually becoming a norm thanks to new services. The Lenders Club helps people find the right loan, CircleUp makes it easy to get equities and Robinhood speeds up securities trading.

Fintech market composition:

• Money market
• Equity market
• Bond market
• Currency market
• Derivatives

Fintech market geographical distribution

The largest share markets in the world are situated in the United States, East Asia, and Europe.

Fintech marketplaces advantages

For customers

• Access to financial services of various organizations online 24/7
• Transaction security
• All transaction information in one place

For financial service providers and banks

• Attracting a new client base
• Reducing the cost of attracting and servicing customers
• Service outsourcing
• It’s profitable. No need to spend efforts on building a branch network, hiring and training staff, and maintaining office. All organizations use a ready-made platform and pay the same commission for attracted deposits, issued consumer loans and person identification. The size of this commission is posted on the platform website.

Fintech Marketplace or ecosystem, which way to choose?

These are different ways of development. You can’t buy food or a ticket on the financial marketplace. In the ecosystem, it is not possible to compare the loan rate in different banks. Fintech marketplaces have a limited product line, they provide the same services from different companies. Ecosystems cover all the needs of the client: in food, transport, education, entertainment and travel. So, which model to choose depends on what type of business you’re building: all-in-one or niche-specific.

Global fintech trends

Investment platforms are now actively moving towards process automation in order to save time and money, especially in the realm of fintech products. Artificial intelligence (AI) technologies can analyze data related to user behavior patterns, recognize patterns and determine future trends.

Blockchain technology makes the process of providing financial services more transparent by providing a record of every transaction, thereby eliminating the need for reconciliation.

The development of Open Banking standards guarantees the secure exchange of users’ financial information. It attracts investors because of its simple paperwork, access to financial data, and a fast credit check system, particularly in the context of fintech products. With the disappearance of barriers, new players enter the market, and competition arises, as a result of which prices for services for consumers decrease. At the same time, for small banking marketplaces, the use of the open banking standard is optional.

Top global fintech marketplace companies

• Among the global FinTech players in Europe, Mintos and TWINO platforms should be singled out. The international investment platform Mintos allows retail investors to invest in high-yielding assets through diversification strategies. It accounts for 45% of the continental European market. And the TWINO fintech group has opened investment services for ordinary users, providing them with the same level of security as banks and brokerage companies.
• Opendoor offers homeowners in the US to buy their property in just a couple of days. Of course, the marketplace sets the price below the market – but the difference is only 6-8%. This is a very profitable discount, because usually Americans pay the same 6% to the realtor who arranges the deal. The term of the sale is also very captivating: under normal conditions, two days is considered an urgent buyout, in which they usually offer to reduce the price by 25%. The marketplace tries to make the real-estate selling more streamlined and pleasant.
• LendInvest is a UK-based P2P real estate lender. On the main page of the site, you can choose who you want to be: a borrower or an investor. Since its launch in 2008, the company has issued more than £1.5bn ($1.9bn) in loans to buy, build or renovate property. The Company uses modern technologies to facilitate the provision of short-term bridge loans, bridge finance, development finance and Buy-To-Let loans to borrowers. As an alternative fintech lender, the company provides fast lending to SME professionals across the UK. It allows individuals, corporations and institutions to invest in secured loans issued and guaranteed by its mortgage team.
• Fundbox is a fintech company headquartered in San Francisco. Using its own analytical database and intelligent modeling, the company helps small businesses grow and develop. 
• CircleUp is a financial technology company based in San Francisco that specializes in consumer products startups. Since its official launch in April 2012, CircleUp has helped several consumer companies raise capital, including Halo Top Creamery, Little Duck Organics, Rhythm Superfoods, and more. General Mills has an investment fund that partners with CircleUp to invest in companies listed on the platform. CircleUp offers liquidity to private companies who need equity funding. Their digital financial marketplace connects companies with individuals looking for angel investment.  
• Robinhood is a financial startup that allows you to trade on the stock exchange. The company has a convenient and simple mobile application. Thanks to it, investments became available to people who previously could not understand the financial markets due to many complex and incomprehensible details. While it’s not a regular financial services marketplace, the platform is intended to make acquiring equities frictionless, to-date, and cost free for consumers.

Best fintech marketplace features

We examined the world experience and highlighted these features to be incorporated into a fintech marketplace for the best user experience: 

• Charting
• Forecasting
• Screening
• Community
• AI trade Signals and pattern recognition
• Auto-Trading 
• Proven Track Record
• Stock research and stock picks
• Portfolio
• Watchlists
• Real-time Stock News
• Backtesting
• ETF Research Reports
• Robo-Advisor
• Automated Portfolio Mgt.

Make a research to learn more about your audience and trends in eCommerce, draft a unique selling proposition and start designing your fintech marketplace picking up only those features that will be in demand for your consumers.

Read more:

Service Marketplace: What is it, and How to start it?

We have been developing marketplaces since 2015 and have a great experience in it. Our developers will embed any service or feature via API to your CS-Cart marketplace. We can host, design, and scale your fintech project. You don’t worry about your project quality, security and ultimately success with customers. We commit ourselves to turn your marketplace into a convenient place to sell and buy financial products.