When Generative AI hit the scene in late 2022, it felt like society got a new hammer, looking for a nail. AI was tacked onto everything and anything. It turns out, the hardest part for companies looking to adopt AI isn’t the technology itself, but finding the use cases that are worthwhile.
Years later, we separate signal from the noise, and identify profitable applications of AI in Finance, our 10 Hot AI Startups list. We compiled a list of Fintech AI startups. We took the best aAI + finance startups in the YCombinator company directory and Pitchbook — searching over 1000 companies.
Our major focus is on clarity and detail of the core value proposition, and signs of traction. As well as disruption potential to the fintech market. The ranking on the list does not reflect any particular merit of one company over another. The aim is to display a variety of applications of AI in finance. Many of the companies on the list have competitors who are doing well too.
Reading this list may give you inspiration where your company could increase profit with the help of AI. Moreover you can see overall trends in innovation, which we distinguish into 3 types: Efficiency Booster, Decision Enabler, Compliance Catalyst. All to help you succeed.
Without further ado, here are 10 startups that have found profitable nails for their AI hammers. – the last one will surprise you ;)
Fintool integrates ChatGPT with SEC filings and earnings calls to create an AI-powered equity research assistant, aiding analysts in efficiently gathering and interpreting financial data.
In the complex financial markets, Fintool democratizes high-level analysis, enabling smaller investors to make informed decisions swiftly.
Puzzle automates accounting processes, including bookkeeping and financial reporting, using machine learning to identify anomalies and optimize workflows.
By reducing errors and saving time, Puzzle allows businesses to focus on strategic goals, transforming accounting from a burden into a growth enabler.
JustPaid accelerates invoicing and payment collections using AI to predict payment delays, prioritize collections, and personalize follow-ups.
Cash flow is vital for businesses. JustPaid ensures companies receive payments faster, improving liquidity and reducing financial stress.
Greenlite automates KYC processes using AI models to extract and verify customer information quickly and accurately.
In a digital-first economy, seamless onboarding is essential. Greenlite helps financial institutions onboard customers faster without compromising compliance.
Cascading uses AI to assess creditworthiness, financial history, and market trends, streamlining lead qualification for business loans.
By automating this critical step, Cascading reduces approval times, enabling businesses to access funding faster and fueling economic growth.
Repool simplifies the complexities of starting a hedge fund by automating compliance, fund structuring, and operational workflows.
Repool lowers barriers to entry for new fund managers, promoting innovation and diversity in the investment space.
Era analyzes spending patterns, suggests budgets, and optimizes savings strategies, integrating seamlessly with banking systems.
With personal finances becoming increasingly complex, Era empowers individuals to make smarter financial decisions, fostering long-term financial wellness.
RedSky Health uses AI to identify reasons for denied claims, automate resubmissions, and optimize documentation for approvals.
Denied claims cause financial strain for patients and providers. RedSky ensures smoother claim processes, enhancing healthcare affordability and access.
Auquan automates back-office tasks in asset management, including risk modeling, performance tracking, and portfolio optimization, using machine learning to uncover hidden patterns in data.
By streamlining complex processes, Auquan enables asset managers to make more informed decisions and improve operational efficiency.
With AI-powered software development tools like Replit, Cursor, Github Copilot, V0, Claude and ChatGPT, it is now possible to make finance apps at lower cost.
It opens up the possibility for micro-saas – custom built applications that were not economical to scope and develop previously, but now they can be. Think applications like an AI quotation builder plug-in for a banking CRM or board meeting summarizer in a particular format.
Micro-saas have a few advantages:
- you’re not paying for functionality you don’t use
- they are tailored to your company’s workflow and people
- they can integrate with quirky softwares that wouldn’t typically be at the top of the list of integrations for SaaS companies.
What about maintenance?
The same tools that allow for more rapid creation of these apps can be used by non-software engineers to keep the app up to date.
This new reality upends established buy vs build equilibrium. Are you interested in building a micro-saas solution? Schedule some time with us now.
