news | Forbes The Future Of Wall Street: Fintech 50 2019 février 4, 2019 | By Forbes There’s a fintech revolution going on inside Wall Street’s biggest firms. At asset management giants from Blackrock to Third Point, banks such as Goldman Sachs and Citigroup, and financial service behemoths Nasdaq, MetLife and American Express, upstart fintech firms are revolutionizing the way they operate. These blue-chip institutions are both users and investors in the most disruptive fintech firms on Wall Street, as laid out in Forbes’ 2019 Fintech 50. Pioneering fintechs are allowing banks to make faster and better underwriting decisions, and to get a better handle on their risk. Armed with powerful new sets of data and machine-learning algorithms, banks and insurers are now able to sift through haystacks of information to quickly spot financial fraud, identity theft and those who are trying to evade sanctions. Many of these same tools can be used to confirm borrowers’ identities, easing the flow of credit to individual lenders and small business. In markets, algorithms that study language are helping trading houses and exchanges spot manipulation. Mega-banks are using AI to get a better, real-time understanding of their market and operational risks. Our Fintech 50 list includes stalwarts on Wall Street like pioneering data startups such as Ayasdi, Digital Reasoning and Enigma. Secure communications platform Symphony now counts over 400,000 users who generally pay $15 a month to have access to its encrypted, Slack-like messaging platform and hundreds of other tools such as financial applications like FactSet and KoyFin, screen-sharing functions and even virtual data rooms to settle trades. IEX, another longtime listmaker, is now where billionaire Thomas Peterffy’s Interactive Brokers trades. Addepar, the software platform wealth managers use to manage their client accounts, surpassed $1 trillion in assets in April, and assets rose a further 30% by year-end. New additions to our list include, Axoni, founded by blockchain entrepreneurs Greg Schvey and Jeff Schvey, which aims to use smart contracts to overhaul the back office of the world’s biggest derivative markets. Axoni is currently working with DTCC and some of the world’s biggest bank to build a distributed ledger to settle credit derivative trades and its technology is deployed in foreign exchange. Recently, it added Goldman to a who’s-who of Wall Street backers. Fintech is birthing a number of entrepreneurs. Kyrgyzstan-born Erkin Adylov got his start on Wall Street as an equity analyst at Goldman and then as a portfolio manager at hedge fund GLG Partners, before deciding he could build an AI stack for financial firms, including language algorithms to track emails and voice communications, and firmwide inventories of financial assets to trade or sell. Behavox, his five-year-old fintech startup, already counts some of the world’s biggest quant funds as users, and Adylov foresees building the company into the Microsoft Azure of sorts for AI on Wall Street. You will increasingly see new lister Carta in initial public offering documents. The fintech helps private and public companies and their employees and investors track their ownership and is used by nearly 100 unicorns. The simple task of keeping track of equity grands, options and performance-based stock units and funding rounds was disorganized until Carta came along and began managing the capital tables of the world’s most valuable private companies. Named as a transfer agent in Tilray’s S-1, you should expect to see Carta’s name again if the likes of Slack and Casper go public. The town of Fort Lee, New Jersey, is known to commuters as a feeder into the George Washington Bridge. It’s also home to a former community bank that now powers the online lending industry. Gilles Gade, the founder of Cross River Bank, assembled a group of investors to fix up a small bank after the crisis, then realized he could use its charter to originate loan notes for online lenders. Ever taken a loan from Affirm or Quicken’s RocketLoans? The actual loan note is issued by their bank-in-a-box at Cross River. Now that the secret’s out, Cross River recently took in $100 million in a round led by KKR that valued the former community bank at approximately $1 billion. Here are the 11 companies serving Wall Street’s biggest firms that made the Forbes Fintech 50 in 2019, including a brief description of what they do, who their users are and how much they’re worth. Addepar Mountain View, CA Its cloud-based software allows financial advisors, family offices and private banks to track and analyze a client’s holdings and more easily bring new clients on board. Integrates to Morningstar, Quovo, Citco, iCapital Network and Salesforce. Funding: $240 million from 8VC, Valor Equity Partners and others. Latest valuation: $500 million plus Bona fides: Assets on the platform now stand at $1.3 trillion after rising 30% from April through December. Users include Morgan Stanley, AB Bernstein, Oppenheimer & Co. and Jefferies. Cofounder & executive chairman: Joe Lonsdale, 36, also a cofounder of Palantir Technologies CEO: Eric Poirier, 36 Axoni New York City The company is using blockchain-based smart contracts to overhaul the back office of the world’s biggest derivative markets. Its distributed ledger will allow counterparties to see payments, calculations and other vital trade information in real time, improving efficiency and lowering risk. It’s already partnering with world’s biggest banks and financial intermediaries. Funding: $59 million from Goldman Sachs, JPMorgan and others Bona fides: It is currently putting the $10 trillion credit derivative market onto smart contracts working with DTCC and a steering committee of 15 of world’s biggest banks. It’s already settling foreign exchange trades using the blockchain. Cofounders: CEO Greg Schvey, 32 and CTO Jeff Schvey, 33. The brothers also cofounded TradeBlock, which provides institutional trading tools for cryptocurrency. Ayasdi Menlo Park, CA Its machine learning technology, first developed for defense agencies, is used by big banks to analyze their market and operational risks as well as to detect patterns of potential money laundering. Ayasdi helped Citigroup pass the Federal Reserve’s stress tests and by improving their analysis of assets is helping banks be more efficient with their capital reserves. Funding: $106 million from Kleiner Perkins, Khosla Ventures, Citi Ventures and others. Bona fides: Customers include Citigroup, Credit Suisse, Department of Homeland Security, J&J and Lockheed Martin. Cofounders: CEO Gurjeet Singh, 37; President Gunnar Carlsson, 66; and VP-Research Harlan Sexton, 64. All three are Stanford mathematics Ph.D.s. Behavox New York City It is fast becoming the one-stop AI shop for Wall Street, using algorithms to handle surveillance of email, voice, and text data and accompanying data lakes. Behavox also helps broker dealers locate asset inventories, and hedge funds to uncover hot and cold PMs. Funding: $15 million from Index Ventures, Hoxton Ventures, Citigroup and others. Latest valuation: About $300 million Bona fides: Nearly 30 customers, including Balyasny Asset Management, Arrowgrass, Marshall Wace, TP ICAP, Citigroup, Anglo American Founder & CEO: Erkin Adylov, 35, a Kyrgyzstan-born former Goldman analyst and hedge fund portfolio manager. Share À propos de Behavox Ltd. Behavox est une société axée sur les informations qui utilise l’IA comportementale et l’apprentissage automatique pour protéger les entreprises des crises d’entreprise et des événements pouvant mettre fin à une société. Behavox propose des solutions qui aident les entreprises internationales et les sociétés financières à produire des informations précieuses à partir des communications internes telles que les courriels, les messages instantanés, les médias sociaux et les données vocales. Behavox couvre plus de 150 types de données, dont Microsoft Teams, Twitter, WeChat, WhatsApp et Zoom, dans de multiples langues. Fondée en 2014, Behavox est établie à New York et possède des bureaux à Montréal, à Londres, à San Francisco, à Seattle, à Singapour, à Tokyo, à Dallas et à Abou Dhabi. De plus amples informations sur la société se trouvent à l’adresse www.behavox.com. Press Contact [email protected]