12 Israeli fintech startups shaping financial services today

Israeli startups are incorporating artificial intelligence, analytics, and emerging technology into innovative payment systems to challenge the status quo in the financial services industry.

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 After years of attracting global attention for helping financial services companies harness technology such as machine learning and big data analytics, Israel’s fintech sector made a splash in the first half of 2020 as a leading unicorn completed one of the most successful IPOs of the year in the U.S.

 Lemonade, which uses artificial intelligence to provide property and renters’ insurance, raised US$319 million in June and its shares have surged since the offering—a standout moment for an ecosystem of some 500 startups ranging from fledgling ventures to unicorns.

 Venture investment in the sector has jumped over the last three years. In 2019, Israeli fintech firms raised $1.7 billion in venture funding, more than twice the amount the previous year, and triple the figure for 2016, according to the Israel Venture Capital Research Center, which tracks venture investment.

The pandemic has not scared off venture investors globally, though it has dampened appetites compared to previous years. The same trend is being felt in the Israeli fintech sector. According to Start-Up Nation Central, another organization which tracts investment in Israeli technology, Israeli fintech companies have attracted some $700 million in investment in 2020. That pace is slower than that off 2019.

 The startups run the breadth of the fintech category, from payments and loans, to accounting and antifraud, to insurance tech and asset management.

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