Financial services companies are waking up to the vast opportunities enabled by the current wave of fintech. In New York, the biggest share of fintech investment deals was from lending companies: 47 percent of all deal values and 21 percent of the number of deals.
What’s New York’s advantage in fintech? It’s that entrepreneurs are close to the heart of the financial services industry. There’s a combination of innovation and domain expertise in the city, with companies having access to a wide talent pool.
So, where’s the money going? It turns out, payments accounted for the largest number of fintech deals in the United States last year—29 percent. In 2012, 33 percent of the total number of fintech deals in New York specifically were in payment companies. In 2013, payments accounted for 28 percent of deals; last year it was 21 percent.
When it comes to the next frontier of fintech in New York, there are three big trends that will take shape. New York-based startups are among the most successful in developing innovations that address some of the trends that fintech experts are seeing on a national level: crypto currency, cloud computing and automated investing advisory services.
The bottom line: we’re in the midst of major disruption in financial services as banks and insurers aggressively pursue digital transformation in various forms, from partnerships to acquisitions to strategic investments. We are on the verge of a complete digital transformation of financial services.