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Under the Radar: Bank Executives Not Aware of Key Fintech Startups [Chart]

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Under the Radar: Bank Executives Not Aware of Key Fintech Startups [Chart]

Flying Under The Radar

Bank Executives Not Aware of Key Fintech Startups

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

Mid-afternoon single malt scotch. Summers in the Hamptons. Six-digit bills for yacht maintenance. If you thought bankers live in a bubble, you are correct. Today’s chart is even further evidence: banks are unaware of the very products and services that are vying to pull the rug from under them.

Fintech startups such as Square, The Lending Club, Nutmeg, and Betterment are taking the world by storm, but so far bank executives are unaware of their existence. A survey of 110 bank executives, ranging from directors to C-suite management, found that the majority of respondents do not know key fintech startups that are rapidly changing the banking landscape.

First, the benchmark: 92% of execs knew about Paypal, one of the first real fintech companies to exist. Paypal was started in 1998, IPO’d in 2002, and then was subsequently bought out by Ebay for $1.5 billion. Last year, the company moved $228 billion in 26 currencies across more than 190 nations.

Now, let’s take a look at some of the newcomers:

The Lending Club has a $5 billion market capitalization, after debuting on the NYSE after a widely celebrated IPO in December 2014. It raised $870 million in the IPO, yet only 18% of banking execs know about the company and what it does.

Square was co-founded in 2009 by Jack Dorsey, who was previously involved with starting a little-known company called Twitter. Square is an electronic payments service that was last valued at $6 billion in 2014, when it did its last raise of $150 million. Somehow only 15% of bank execs know about this company.

Nutmeg is the company that bank execs know the most about. About 23% of respondents know of the company. Nutmeg is an online wealth management platform from the UK that last raised $32 million in 2014 at an undisclosed valuation.

Betterment is another online financial adviser that was valued at between $400 million and $500 million in early 2015 with billions of assets under management. Roughly 73% of respondents had never heard of this fintech startup.

This reminds us of the early days of file-sharing and eventually music streaming services on the internet. Music labels, which are almost all but gone of the way of the dinosaur, fought with legal threats, lobbying, legislation, and lawyers rather than by way of innovation.

That may be the only way that the big banks can fight if it becomes too late.

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Ranked: The 20 Biggest Tech Companies by Market Cap

In total, the 20 biggest tech companies are worth over $20 trillion—nearly 18% of the stock market value globally.

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A portion of the top 20 biggest tech companies visualized as bubbles sized by market cap with Apple as the biggest.

Ranked: The 20 Biggest Tech Companies by Market Cap

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The world’s 20 biggest tech companies are worth over $20 trillion in total. To put this in perspective, this is nearly 18% of the stock market value globally.

This graphic shows which companies top the ranks, using data from Companiesmarketcap.com.

A Closer Look at The Top 20

Market capitalization (market cap) measures what a company is worth by taking the current share price and multiplying it by the number of shares outstanding. Here are the biggest tech companies according to their market cap on June 13, 2024.

RankCompanyCountry/RegionMarket Cap
1AppleU.S.$3.3T
2MicrosoftU.S.$3.3T
3NvidiaU.S.$3.2T
4AlphabetU.S.$2.2T
5AmazonU.S.$1.9T
6MetaU.S.$1.3T
7TSMCTaiwan$897B
8BroadcomU.S.$778B
9TeslaU.S.$582B
10TencentChina$453B
11ASMLNetherlands$415B
12OracleU.S.$384B
13SamsungSouth Korea$379B
14NetflixU.S.$281B
15AMDU.S.$258B
16QualcommU.S.$243B
17SAPGermany$225B
18SalesforceU.S.$222B
19PDD Holdings (owns Pinduoduo)China$212B
20AdobeU.S.$206B

Note: PDD Holdings says its headquarters remain in Shanghai, China, and Ireland is used for legal registration for its overseas business.

 

Apple is the largest tech company at the moment, having competed with Microsoft for the top of the leaderboard for many years. The company saw its market cap soar after announcing its generative AI, Apple Intelligence. Analysts believe people will upgrade their devices over the next few years, since the new features are only available on the iPhone 15 Pro or newer.

Microsoft is in second place in the rankings, partly thanks to enthusiasm for its AI software which is already generating revenue. Rising profits also contributed to the company’s value. For the quarter ended March 31, 2024, Microsoft increased its net income by 20% compared to the same quarter last year.

Nvidia follows closely behind with the third-highest market cap, rising more than eight times higher compared to its value at the start of 2023. The company has recently announced higher profits, introduced a higher dividend, and reported that its next-generation GPU chip will start generating revenue later this year.

AI a Driver of the Biggest Tech Companies

It’s clear from the biggest tech companies that involvement in AI can contribute to investor confidence.

Among S&P 500 companies, AI has certainly become a focus topic. In fact, 199 companies cited the term “AI” during their first quarter earnings calls, the highest on record. The companies who mentioned AI the most were Meta (95 times), Nvidia (86 times), and Microsoft (74 times).

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