Fintech entrepreneurs are already watching big tech companies get increasingly involved in the fintech space. It comes as no surprise that Google and Intel are the biggest corporate investors in this thriving industry.
Google leads the pack, with its investment arm, Google Ventures, seen as one of the 10 most actively investing VC firms in fintech.
Here’s how Google is making waves in fintech, and why startups like yours need to keep a keen eye on this tech giant.
Pioneer in Financial Technology
Google was already ahead in the mobile payments scene when it launched Google Wallet for online payments and money transfers in 2011. In 2015, Google upped its game by launching Android Pay to handle in-store and online payments with your phone. This tech googol is continuing to make fresh inroads into fintech.
Financial Innovation Now
Fintech startups are celebrating Google’s serious ambitions in their space. In 2015, Google joined forces with Amazon, Apple, Intuit and PayPal to form Financial Innovation Now. This coalition aims promotes policies that will foster technological innovation in the financial services space.
According to Brian Peters, the group’s executive director,
Financial services technology is on the brink of change, and fintech entrepreneurs need to be ready to ride this new digital wave.
Google’s Investment Portfolio in Fintech
Google Ventures was set up in 2009 as a venture capital fund. This VC firm’s investment portfolio in fintech tells us a lot about how Google is looking to shape the industry. If you are a fintech entrepreneur looking to catch Google’s attention, this portfolio should be of particular interest to you.
Google Ventures, recently rebranded as GV, has been on the lookout for innovative fintech startups. Out of GV’s investments in different ventures, about 13 percent of the companies are fintech ventures representing a wide range of fintech segments.
In addition, Google seems very interested in crowdfunding, security, trading tools, digital currency and back office software.
Which fintech segment does your startup represent?
Fintech Startups that Scored Big with Google
Google Ventures has been consistently ranked as the top corporate investor in fintech with more than 25 investments in fintech companies since 2010. In 2016 itself, GV invested in three new fintech startups including Pindrop Security and LendUp.
Here are seven fintech startups that scored big with Google funding:
Abacus makes it simple and quick for employees to get repaid any money that they spend on behalf of their employers. Google Ventures made this Abacus worth counting, with an investment of $3.5 million.
Ripple Labs created an Internet-based payment protocol that enables free, instant payments across the world in any currency – including bitcoins and loyalty points!
Gusto, formerly Zen Payroll, takes payroll and HR benefits to the cloud. This feature allows businesses to smoothly take care of these tasks from any web-enabled device.
OnDeck uses a technology-driven platform to provide loans to small and medium US businesses swiftly and transparently.
Digit helps people save money by automatically transferring a small amount of dollars to their savings account every week. The company raised $2.9 million in seed funding with the help of GV.
Plaid is a banking API that allows developers to interact with banks and credit cards.
Puddle has created a crowdsourced online lending platform, opening up a new way to access credit.
Fintech stakeholders and entrepreneurs are eagerly awaiting Google’s next moves in fintech.
Which fintech segments do you think Google will invest in next?
The increased interest of tech companies in financial technology is one of the many 2016 fintech trends to watch out for.