Of all the start-ups enjoying record successes fresh out of business school, those in the fintech sector are perhaps the most eye-catching.As more investment floods in the nascent industry, MBA students’ ventures that are hoping to disrupt banks in payments, transfers and money management, are aiming for the sky.
Lending Club, the US’s biggest peer-to-peer lender, which was valued at $4.5 billion in its IPO last year, was founded by HEC Paris MBA Renaud Laplanche. Prosper, another P2P lender, got a $1.9 billion valuation in its IPO this year. It’s CEO, Aaron Vermut, is a Wharton alum.
“A growth area over the past year has been the fintech sector, effectively straddling both finance and technology,” says Sarah Juillet, director of postgraduate careers at Cass Business School in London.
Mike Cagney co-founded SoFi with Stanford GSB classmates four years ago. The disruptive student loans provider is edging into banks’ territory with a slick online platform.
It has hit $6 billion in loans funded, and has raised $1.4 billion in venture capital. “It’s proof that members and employers are responding enthusiastically,” says Mike, CEO.
In the third quarter, global investment into VC-backed fintech companies hit a record $4.8 billion, according to CB Insights. In some regions fintech investment could quadruple, according to Accenture.
“We are seeing the convergence of two trends: venture capitalists are clearly signalling fintech is a growth opportunity and simultaneously financial services companies are waking up to the vast opportunities created by the current wave of fintech,” says Jon Allaway, a senior managing director of Accenture’s financial services group.
Ismail Ahmed recently raised $100 million for his money transfer business WorldRemit, from backers including Accel Partners, the Silicon Valley VC firm, giving it a valuation of $500 million.
“We are offering money transfers fit for the 21st century,” says the London Business School MBA. “It’s absurd that with all the advances we’ve had in global communication, remittance companies should still expect their customers to physically withdraw cash.”
Taavet Hinrikus, co-founder of TransferWise, similarly raised around $90 million for the London fintech firm, from the likes of Andreessen Horowitz and Sir Richard Branson.
The online cash transfer company is one of many start-ups taking on the large lenders.
“Banks, brokers and others take advantage of customers by hiding the real cost of international transactions,” says Taavet, who graduated from the business school INSEAD.
Others are breaking into the investment management space. Nick Hungerford is the founder and CEO of Nutmeg, an online wealth manager. The company combines the services offered by institutional wealth managers with a “DIY” approach online.
Nutmeg has raised nearly $40 million in funding from investors including Schroders, Europe’s second largest asset manager, and London VC firm Balderton Capital.
“For 300 years rich people have had two choices: give your money to someone else to manage or do it yourself,” Nick, who has an MBA from Stanford, said at a recent London event. Now, he added, there is a third way: Nutmeg.
Student Reviews
Best Journalism school in Europe
When I first stepped onto the campus of City, University of London, I knew I was in for a ride - and not just on the Tube! With its vibrant energy and an impressive repertoire of programs, City U became my home away from home.
The Journalism program was kind of a big deal. Rumour was that we were the best in Europe!
The lecturers were not just experts in their field; they’re practically journalistic royalty. They were invested, passionate, and had a knack for turning the most flat press release into a riveting news story. With their guidance, I’ve learned to navigate the chaotic world of media like a pro.
The campus was a melting pot of every culture, being that we had such a diverse international crowd.
Being in the heart of London, I had the world at my fingertips - there was always a new corner to explore, a hidden gem of a cafe to discover, or a street performer!
City, University of London wasn't just a university; it was a chapter in my life story that I’ll never forget.
Learning environment
The teacher-learner ration is manageable, giving each learner a chance to gain personal attention. It is also easier following up on the progress of a student, as the numbers per class is not large. the conducive environment for learning includes clean classes, standard desks, world class instructional facilities and the opportunity to engage lecturers even after their sessions. The team spirit at City is above board, with learners getting chance to learn both from instructors and colleagues. This is the university of choice; the place to be.
Classes
I liked that each class had a manageable number of learners, making the professor-learner ratio favor knowledge acquisition. I also liked that study schedules were manageable, and not overwhelming. The focus on talents and gifts even within the learning environment makes it possible for learners to achieve the best of their potential, and this has worked to the advantage of those that have schooled at City, University of London
Classes
The diversity at City University facilitates interactions and is a direction toward the unity of the world. The classes are well built to match the number and needs of all students regardless of the elements of diversity that set people apart. The use of technology in delivery makes learning even more interesting and achievable. At City University there is no distinction pegged on the issues that make people unique.
professors
The team of lecturers at the Uiversity are well experienced. Their level of insight and the methodologies of delivery works for the interes of the leaeners. My learning experience was largely boosted by the level of knowledge of the professors at the institution, and their passion to transfer the same to learners. I appreciate every class I attended because of the level of insight I was able to gather
The best university I’ve been to
The campus and the people I've met have made it a wonderful experience. I was reared in a small town with a graduating class of only 88 individuals, so moving to City University was a huge adjustment for me. My dorm has more residents than my whole high school combined! I enjoy the atmosphere here, and everyone is so friendly. Outstanding academic options and a stunning campus. Really great from beginning to end. The educators genuinely love what they do, and the students are ready to learn. On or around college, there is always something to do with friends, and the social scene is particularly warm.
Bayes Business School
As a student at City university attending Bayes Business School I would totally recommend choosing this university as the experience is exceptional with great social networking opportunities . Professors are significantly helpful, delivering with excellence and professionalism. Everyone is happy to help and make you feel welcomed in such an esteem university as City, offering exceptional development and guidance through out the course.
Economics and Politics
Incredibly amazing university, the way they polish students and help them boost their morale and think intellectually is worthwhile. Many universities have international partnerships to allow exchanges between their students. The most obvious subjects for these opportunities would be those that involve languages, and the study of people and places.
Clinical biology
I really like it it’s perfect for me with not too many people and not too few either. All the modules are amazing. I love the toy bar. I love all the societies that I’ma part of. Especially the colour Bollywood society
