Data science, credit scoring and digital finance company ID Finance is among the high growth fintech companies highlighted in a new report on the global fintech industry by leading technology investment bank GP Bullhound. According to the report, ID Finance has the fast-growth, ambition and robust credentials to achieve a billion-dollar valuation.
GP Bullhound’s analysis of the global fintech industry finds that venture capital investment into the sector has risen almost fivefold in the past three years to reach $13.6 billion in 2016. The report also finds that alternative finance is the vertical with the most companies valued at $1 billion or above. There are now 39 fintech companies valued at over a billion dollars, 16 of which are in the alternative finance space including Avant, Kabbage, Prosper, SoFi and Funding Circle. These companies have raised n average of $670m with an average valuation of $3.1bn.
The report highlighted three ‘Companies to watch’ in the alternative lending vertical: UK’s leading fintech disruptor in specialist mortgage lending LendInvest, pioneer in underserved student loan market Prodigy Finance and emerging markets consumer lending company ID Finance – all of which it believes have the fast-growth, ambition and robust credentials to achieve a billion-dollar valuation.
The report explained that “the reasons for the strong investment appetite are clear: using technology and data, fintech firms in developed markets are providing financial services and solutions in more efficient and streamlined ways to fill the gap that legacy institutions have left. Meanwhile, in emerging markets, fintech firms are building a world-class, digital-first financial services infrastructure.” According to McKinsey, emerging markets could boost their economies by $3.7tn over the next decade by embracing the full potential of digital finance.
ID Finance is leveraging the growth of the mobile internet and availability of data to improve access to competitive and transparent financial services in emerging markets. Its proprietary and fully automated scoring model employs machine learning to analyse 10k data points in real time.
“We’re honored to be highlighted among some of the most exciting fintech companies globally by London’s leading technology investment bank,” comments Boris Batine, CEO at ID Finance. “We remain focused on our mission to give those in emerging markets access to the same competitive and transparent financial services that we take for granted in the West. We’re now enjoying strong and consistent growth thanks to a diversified loan portfolio that covers Russia, Kazakhstan, Georgia, Spain, Poland and Brazil.”