As the world becomes increasingly digitized, financial institutions are being forced to change how they interact with their customers. Fintech companies are driving many of these changes.
The fintech industry has emerged as one of the major divisions of technological development, with many companies now recognizing how new advances can bring banking and other services to populations that previously did not have access to them. Moreover, advancements can improve how we approach financial services to make them more streamlined for customers.
Across the globe, several major fintech hubs have emerged as the prime locations for starting and growing startups focused on financial technology. These hubs develop because of access to funding, accelerators, and opportunities for collaboration. Some of these major hubs include the following:
- New York
One of the major financial capitals of the work, New York has no shortage of skilled workers, not to mention some great incubators that can help nurture the growth of startups. Also, New Yorkers are excited to take up new technologies, so the city has a strong audience that encourages continual development.
New York has a rich data privacy and security industry, which is also integral to creating fintech apps that people trust. Fintech firms can work with these companies to create safe and secure solutions. The city itself is very welcoming to startups and has one of the largest scenes in the world, with more than 9,000 fledgling companies and more than 100 accelerators or boot camps. Plus, New York is home to some of the world’s largest financial institutions, such as Goldman Sachs, Morgan Stanley, and Citibank.
While Brexit has caused some anxiety regarding the United Kingdom’s status as a major financial player, the nation has remained stable in its dominance of the finance market. With many investment opportunities and a large talent pool, London is a great place for startups and emerging companies.
London has many leaders in the fields of artificial intelligence and blockchain, both of which are frequently integrated with fintech. The potential for collaboration with companies working in these fields opens many exciting new avenues for fintech development that could help push us toward a new financial future. In addition, London boasts many accelerators, including more than 20 that are focused on fintech startups. This creates a warm and welcoming environment for fintech entrepreneurs.
- San Francisco
In many ways, San Francisco and the larger Silicon Valley area are the nuclei of startup culture. This area has a very rich fintech sector. The founders of these companies are next door to some of the world’s most influential tech leaders, and the opportunities for collaboration are extremely exciting.
Fintech companies in Silicon Valley are working in a variety of areas, such as credit scoring, customer profiling, and mobile banking. Historically, some of the most significant fintech startups have come from San Francisco. These companies are eager to invest back in the industry and provide mentorship to emerging entrepreneurs. Also, the region is home to innovation labs and tech campuses of global financial leaders such as Deutsche Bank, Visa, and JP Morgan.
A leading financial center in Asia, Singapore is a major fintech hub as well as home to companies working in virtually all financial sectors, from capital markets to banking. The fintech startups in Singapore also boast an impressive array of different focuses, including cybersecurity, cloud computing, artificial intelligence, and distributed ledger technology. Here, investment in fintech has increased significantly over the last couple of years.
Singapore is home to more than 20 accelerators that work primarily with fintech startups. Beyond this, Singapore has created a very favorable tax policy for startups, which, along with the government’s significant investments in the industry, has attracted many fintech entrepreneurs. Another point to consider is that Singapore provides easy access to other major financial hubs in Asia, such as Tokyo and Bombay. These markets can be more difficult to enter from cities in Europe and the Americas.
While Boston is not one of the largest cities in the United States, it is home to Harvard University, the Massachusetts Institute of Technology, and several other top universities. Furthermore, Boston is known as a major tech hub of the country. Even though biotech has become king in the city, fintech is picking up a lot of momentum in recent years, especially with entrepreneurs emerging from local universities launching new companies. The robotics and manufacturing focus of many startups offers unique opportunities for collaboration, and the state of Massachusetts offers attractive research and development tax credits. Already, Boston has launched some massive fintech companies, such as Circle, a cryptocurrency startup that is valued at $3 billion.