As the fintech behemoth surges onwards, leaving traditional financial institutions scrambling to keep up behind it, it’s worth tracking which industries are going to be disrupted next by digitized financial services and cloud-based computing.
In June it was the turn of credit scores by the look of the handsome investment Credit Karma received from a string of high-profile investors including Tiger Global management, Valinor Management and Viking Global Investors.
Credit Karma, headquartered in San Francisco and CEO’d by Ken Lin, leads our list of fintech startups that raised the most investment in June 2015, after receiving $175 million in their C round of funding.
Online credit scores have been around for a while, but the investment community evidently sees legs in the model that Credit Karma have created: letting customers analyze their credit scores for free, and then recommending credit-building options through their partners.
It’s quite an impressive way of converting traffic to an online app into revenue outside of the ‘traditional’ advertising model.
With an estimated 40 million users, Credit Karma certainly has enough pulling power to get consumers interested in its partners credit cards and personal finance options, and as things stand, the Valley-based business is looking at an IPO within the next 18 months.
This investment into the credit calculation market is an indicator of fintech’s popularity with the millennial generation.
More people than ever are looking to the online world to calculate their credit score, and this market looks like it will be increasing as millennials who will be engaging with online fintech solutions for years to come, have the lowest average credit score of any generation.
When millennials look to improve their credit score and securing personal finance, they’ll be looking online for a solution, and companies like Credit Karma will be waiting when they do.
Check out the infographic above to see the other fintech startups that raised the most investment in June 2015.