Exploring New York City's Economic Sectors

INDUSTRY TRENDS& INSIGHTS

FINTECH IN NEW YORK CITY | DECEMBER 2015

HIGHLIGHTS

P. 1 35,000 NYC tech ecosystem

workers are employed in Finance

P. 3 Finance and Insurance

represented 30.9% share of total

private sector payroll in 2014

P. 4 OnDeck Capital’s December

2014 IPO valued the company

at $1.32 billion

P. 6 NYC FinTech companies

received $464.3 million in

funding in 2014

Center for Economic Transformation

December 2015 | 1

The growth of FinTech in New York City is aided by the city’s emergence as

a hub of tech talent. According to the Partnership for New York City, high

tech employment grew 21% in the city between 2006 and 2014, compared

to 12% growth nationwide.2 The city’s tech workers are spread across

industries, and financial services is one industry that has been particularly

revolutionized by technology over the past 15 years. According to the NYC

Tech Ecosystem report by HR&A Advisors, there were 291,000 workers in

the New York City tech ecosystem in 2014; of these, approximately 35,000

(12%) worked in the Finance subsector.3 The importance of being a global

financial hub is evidenced by employment figures; New York City and

London each have an estimated FinTech labor force four times the size of

that in San Francisco-Silicon Valley.4

There is no one NAICS Code for FinTech. We define it here as the following

NAICS Codes: 511210, 518210, 522291, 522320, 523930, and 541511

(Software publishers; Data processing, hosting, and related services;

Consumer lending; Financial transactions processing; Investment advice;

Custom computer programming services). This is not an exhaustive list of

NAICS Codes that contain FinTech companies, and not all companies

within the selected NAICS codes are FinTech companies. This definition

of FinTech is our best approximation given the available data.

Figure 1 shows the growth of total establishments and employment for

six of the industries that FinTech companies belong to: software publishing,

data processing, hosting and related services, consumer lending, financial

transactions processing, investment advice, and custom computer

programming services. The number of establishments in these areas grew

by 57.6% between 2004 and 2014, while employment increased by

96.1% in the same period.

In 2014, 2.5% of establishments, 5.6% of jobs, and 17.1% of wages in

Finance and Insurance nationwide were located in New York City.5 The number

of Finance and Insurance establishments grew 22.5% from 2004 to 2014,

while employment increased 1.7% in the same period (Figure 2). Employment

in 2014 was down 6.9% from a pre-recession high in 2007. Finance and

Insurance employment fell 3.1% nationwide from 2004 to 2014 (Figure 3).

FINANCIAL TECHNOLOGY, OR FINTECH, has emerged not only as a core competency of the financial services

industry but as an important extension as well. New York City, the world’s financial capital and home to a

rapidly growing tech ecosystem, is well-positioned to become the world leader in FinTech. New York City has

the second largest tech ecosystem in the country behind Silicon Valley, but FinTech firms located in New York

City enjoy a number of unique advantages not present in other areas of the country; for example, the city is

home to a large talent pool with experience in the financial services industry. New York City’s FinTech startups

also benefit from the presence of venture capital firms that have a strong connection to Wall Street and the

financial services industry.1

Employment and Establishments

Annual Average Employment

80,000 6,000

5,000

4,000

3,000

2,000

1,000

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Emp

loym

ent Estab

lishm

ents

Establishments

Figure 1: FinTech Establishments and Employment in NYC,2004–2014

Annual Average Employment

350,000 14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

340,000

330,000

320,000

310,000

300,000

290,000

280,000

Emp

loym

ent Estab

lishm

ents

Establishments

Figure 2: Finance and Insurance Establishments and Employment in NYC, 2004–2014

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Codes 511210, 518210, 522291, 522320, 523930, 541511

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Code 52

December 2015 | 2

Among Finance and Insurance subsectors (Figure 4), Credit Intermediation

and Related Activities employment grew 6.4% from 2004 to 2014, while

employment grew 3.9% in the Insurance Carriers and Related Activities

subsector and 2.1% in the Securities, Commodity Contracts, and Other

Financial Investments subsector. Employment fell 92.4% from 2004 to

2014 in the Funds, Trusts, and Other Financial Vehicles subsector.

Borough ComparisonEmployment in Finance and Insurance is predominantly located in

Manhattan, home to the financial hubs of Wall Street and Midtown.

Manhattan’s share of Finance and Insurance establishments, employment,

and industry payroll in New York City was 68.5%, 87.9%, and 96.7%,

respectively. However, industry employment only increased 1.6% in

Manhattan from 2004 to 2014, compared to growth of 18.7% in Queens

and 21.2% in the Bronx over the same period.

“Silicon Alley” (originally used to describe the area between Union Square

and the Flatiron Building in Manhattan) is home to such FinTech

companies as Betterment and Gemini, but New York City FinTech companies

are located in all five boroughs, notably in Brooklyn.6 Kickstarter,

headquartered in Greenpoint, has over 100 employees.7

115

NYC USA

110

105

100

95

90

85

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Figure 3: Growth of Finance and Insurance Employment, NYCand USA, 2004-2014 (2004 Value = 100)

Source: Bureau of Labor Statistics, Quarterly Census of Employment and Wages, NAICSCode 52

Securities, CommodityContracts, and OtherFinancial Investmentsand Related Activities

Credit Intermediationand Related Activities

Insurance Carriers andRelated Activities

Funds, Trusts, andOther Financial Vehicles

92,300

57,220

540

0

200,

000

150,

000

100,

000

50,0

00

165,250

Figure 4: Finance and Insurance Employment by Subsector, 2014

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Codes 522, 523, 524, 525

130

Bronx

Brooklyn

Manhattan

Queens

Staten Island

120

110

100

90

80

70

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Code 52

Figure 6: Growth of Finance and Insurance Employment byBorough, 2004-2014 (2004 Value = 100)

Bronx

Brooklyn

Manhattan

Queens

Staten Island

Queens, 5.3%

Staten Island, 0.7% Bronx, 1.3%

Brooklyn, 4.9%

Manhattan, 87.9%

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Code 52

Figure 5: Finance and Insurance Employment, City Share byBorough, 2014

December 2015 | 3

40.0%

38.0%

36.0%

34.0%

32.0%

30.0%

28.0%

26.0%

24.0%

22.0%

20.0%

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Figure 7: Finance and Insurance Share of NYC Payroll

Source: New York State Department of Labor, Quarterly Census of Employment andWages, NAICS Code 52

WagesAverage wages in New York City for Finance and Insurance were

$294,220 in 2014, 202% higher than the industry’s national

average of $97,370. Real wages rose 31.9% from 2004 to 2007

but fell 10.3% between 2007 and 2014.8 Within Finance and Insurance,

average wages were highest in the Securities, Commodity

Contracts, and Other Financial Investments and Related Activities

subsector ($404,840).

Finance and Insurance’s share of total NYC payroll was 30.9% in 2014,

down from a pre-recession peak of 37.3% in 2007 (Figure 7). Finance

and Insurance remains the largest industry in New York City in terms of

payroll, and is the industry with the highest average wages.

ELECTRONIC TRADING — AN EVOLVING INDUSTRYWhile the floor of the New York Stock Exchange (NYSE) on Wall

Street and the Nasdaq MarketSite at Times Square are where newly

listed companies celebrate initial public offering and remain

important fixtures of the city’s economy, securities trading itself

increasingly takes place on computers. The vast majority of trades

occur on electronic exchange platforms such as the NYSE (now

owned by Intercontinental Exchange) or NASDAQ. A growing pool

of electronic trades are also being exchanged on Alternative

Trading Systems (ATS), which are trading venues that are typically

regulated as broker-dealers rather than traditional securities

exchanges. ATS are often used by investors to trade large blocks

of shares.

A new entrant in the electronic trading market is IEX, a New York

City-based equity trading venue led by President and CEO Brad

Katsuyama. Profiled in Michael Lewis’ book Flash Boys, IEX began

operating an Alternative Trading System (ATS) in October 2013;

the company is currently applying to operate as a stock exchange.

One of IEX’s distinctive features is a lag in the flow of trading

information, designed to mitigate the advantages of high-frequency

trading.9 IEX achieved its highest-ever market share of 1.86% in

August 2015. According to IEX Head of Product Matt Trudeau, the

New York City talent pool is key; the city represents a strong

combination of financial services and tech.10

Industry Trends

The growth of New York City’s FinTech ecosystem is dependent on the

proliferation of new, innovative companies and the growth of the city’s

talent pool. A successful tech company will influence other companies;

successful entrepreneurs mentor others, and employees of successful

firms may go on to found new ones. This is the cycle that made Silicon

Valley a tech hub over the course of several decades, and it is present

within New York City’s “Silicon Alley” community today.11

Category NYC Companies

Lending OnDeck Capital, LendKey, Crowdnetic

Payments/Billing Tech Venmo, Dashlane, CardFlight

Personal Finance Betterment, LearnVest, BillGuard

Money Transfer Payoneer, PeerTransfer, Transfast

Digital Currency itBit, Coin.co, TradeBlock

Institutional Tools IEX Group, Estimize, Kensho

Crowdfunding Kickstarter, Orchard Platform, Onevest

December 2015 | 4

CROWDFUNDINGCrowdfunding is the practice of raising capital from a large number

of actors outside of the traditional financial market system. While

traditional venture capitalists may invest in a company in exchange for

equity in the company, and possibly a seat on a board of directors,

crowdfunding companies such as New York City-based Kickstarter

provide a platform for members of the public to invest directly in

projects. This new fundraising model has helped fund the production

of hardware, software, consumer goods, infrastructure projects, works

of art, films, and albums.14 With the SEC voting to implement Title III

of the JOBS Act in October 2015, non-accredited investors are now

allowed to participate in equity crowdfunding and invest in startups.15

AUTOMATED WEALTH MANAGEMENTAutomated Wealth Management companies, sometimes colloquially

referred to as “robo-advisors”, use computer technology and

algorithms to allocate funds across different asset classes. These

companies, including NYC-based Betterment and LearnVest, raised a

combined $290 million in venture capital funding in 2014, more than

double the amount raised in 2013.16 Betterment is one of the largest

automated investing services, with over $3 billion in assets under

management for more than 120,000 customers. Led by founder and

CEO Jon Stein, the company partnered with Fidelity Investments in

October 2014, connecting Betterment to investment advisors

interested in utilizing the automated service.

CRYPTOCURRENCYCryptocurrency is a form of alternative currency that uses cryptography

to control the supply of new units. The most well-known

cryptocurrency is Bitcoin, which has grown rapidly since its beginnings

in 2009. As of November 2015, all Bitcoins in circulation were valued

at a total of over $4.8 billion.17 While Bitcoin’s short history has

featured significant volatility, the cryptocurrency gained added

legitimacy through BitLicense, state regulations introduced in 2014

that allow the New York State Department of Financial Services to

issue business licenses for companies engaged in virtual currency

activities. New York City-based Gemini, founded by Cameron and Tyler

Winklevoss, is the second company to operate under the BitLicense

rules. Gemini seeks to become a secure, easy-to-use exchange

for Bitcoin.

MONEY TRANSFERMoney transfer companies seek to reduce the role of middlemen and

reduce the cost of transferring money. Peer-to-peer transfer of funds

can be costly, especially when taking into account exchange rates

when sending money abroad. Companies such as TransferWise claim

to save users up to 90% in fees18; these companies operate in a world

in which $500 billion is sent abroad annually.19 New York City-based

Venmo facilitates a different type of money transfer, the transfer of

payments between users.

FinTech is not limited to Information Technology workers in financial

institutions. The market for FinTech extends well beyond banks, to hedge

funds, asset managers, corporations and consumers.12 While traditional

banks offer a wide variety of services, many FinTech startups specialize in

one service. These companies adopt a narrow focus on commercial

banking, loans, insurance, investing, or wealth management.13 OnDeck

Capital, for example, provides small business loans; OnDeck’s December

2014 IPO valued the company at $1.32B, and at the time was the

largest-ever VC-backed exit for a New York City tech company. Virtu

Financial, an electronic trading firm, had its own IPO in April 2015.

LevelUp allows users to make payments in local stores using their mobile

phones. LearnVest offers financial planning and advice, while PeerTransfer

enables international students to make payments to educational

GLOBAL FINTECHFinTech companies are also having a profound impact in many

other countries around the world. M-Pesa has made it possible for

Kenyans, Tanzanians, and others to deposit, withdraw, or transfer

money using their mobile phones. M-Pesa transactions in Kenya

were valued at 43% of the country’s GDP in 2013. iZettle is a

Swedish company that facilitates credit card payments over

smartphone or tablet; the service is available to users in nine

countries in Europe and Latin America.27

December 2015 | 5

$21.0 (May 12)

$22.7 (Jul 14)

$23.0 (Mar 11)

$25.0 (May 15)

$25.0 (Mar 14)

$27.5 (Oct 10)

$28.0 (Apr 14)

$30.0 (Oct 10)

$53.0 (Jan 13)

$60.0 (July 15)

$60.0 (Feb 15)

$75.0 (Sep 14)

$77.0 (Mar 14)

$0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0

Group Commerce

Intent MediaReval

itBit

Payoneer

TxVia

LearnVest

Lightspeed Financial

SR Labs

ShopKeep POS

Betterment

IEX Group

OnDeck Capital

Figure 8: Selected VC Funded Deals for NYC-based FinTech Companies Since 2010 (in $millions)

Source: CB Insights DealSearch database; using CB Insights’ “fintech” company list

Total VC Funding for NYC FinTech Companies

Total VC funding for New York City FinTech companies grew 71.3% from

2013 to 2014, and funding is up 652.5% since 2008 in nominal terms.

Global investment in FinTech ventures tripled in 2014, with $12.2 billion

in funding compared to $4.1 billion in 2013. This 201% investment

growth compares to 63% overall growth of VC investments in 2014.28

institutions. Kickstarter is a crowdfunding platform for creative projects,

and Estimize crowdsources estimates of stocks and economic indicators.

The following table lists the main categories of FinTech companies, with

examples that are based in NYC.

The financial crisis accelerated the growth of FinTech, as the financial

services industry realized the need for change. Big banks such as HSBC

and Santander have created their own in-house VC funds to invest in

FinTech startups, allowing the banks to monitor innovation within the

sector. Partnerships between established banks and FinTech startups can

be advantageous for both parties, overcoming the high barriers to entry

of the financial services sector and broadening the consumer base for

startups. A recent example of such a partnership was the acquisition of

LearnVest by Northwestern Mutual.20

Large banks such as JPMorgan and Goldman Sachs have invested in

FinTech startups such as Square, a mobile payments company, and Motif

Investing, an online broker.21 According to Motif Investing co-founder

Hardeep Walia, “I think there are great opportunities to partner, even

though a lot of these technologies may be disruptive. If you’re going to

get disrupted, smart firms are going to want to partner with companies

that are most disruptive.”22

Startups and established banks can view each other both as competitors

and as potential partners. Wells Fargo runs a Startup Accelerator, providing

guidance to startups while gaining exposure to new technologies.

Citi Ventures has partnered with Plug and Play FinTech in order to launch

a FinTech and Security Accelerator.23

In New York City, established financial firms are setting up tech hubs in

order to benefit from emerging ideas and talent. MasterCard, Capital

One, and JPMorgan Chase have all leased offices in Manhattan for tech

and digital employees. Barclays PLC and Techstars are launching a FinTech

accelerator to develop 10 companies in the investment banking, wealth

management, and credit card sectors.24

While New York still sits second behind Silicon Valley in the global FinTech

landscape, compound annual growth rates in New York from 2008 to

2013 doubled compared to Silicon Valley’s in terms of both deals

(31% vs. 13%) and funding (45% vs. 23%).

According to an analysis by CB Insights, the four key focus areas of

FinTech for the top 12 venture capital firms are lending, personal finance

management, payments technology, and bitcoin. FinTech deals by the top

12 VC firms nationwide grew by 61% between 2010 and 2013.25

The changes in banking regulations that have taken place over the past

few years have spurred the proliferation and growth of FinTech companies

specializing in risk management, data analytics, and trading platforms.

According to McKinsey & Co., there were more than 12,000 startups in

the United States focused on banking in 2014.26

December 2015 | 6

Accelerators and Incubators

State of the NYC Ecosystem

FinTech Innovation LabThe FinTech Innovation Lab is a 12-week program that provides six

companies with space, funding, and mentors from participating financial

firms. Since 2010, the program has aimed to connect financial technology

firms with leading financial firms and VCs. The program is run by the

Partnership Fund for New York City, an arm of the Partnership for

New York City, and Accenture.29 The program culminates in a Demo Day,

during which the companies present their technologies to an audience

of bank executives, investors, and journalists. Participating startups have

raised $175M in funding after graduation from the program and

have created 205 jobs.30 CB Insights, which provides and analyzes data

on private companies, is a notable graduate of the program.

Barclays AcceleratorThe Barclays Accelerator in New York City is a partnership between

Barclays and Techstars that provides startups with mentors, co-working

facilities, and networking opportunities. The New York City program

began in July 2015 and culminated in a Demo Day in October. Techstars

will invest $20,000 in each of the startups in exchange for a 6% stake in

the company.

ValueStream LabsValueStream Labs was founded in 2013 as an accelerator that specializes

in supporting FinTech startups in the early stages of a company’s growth

process. ValueStream Labs’ accelerator program lasts for four months; the

first company to graduate from the program was Estimize, a company

that crowdsources estimates of economic indicators.31, 32 According to

ValueStream Labs’ Managing Partner Greg Neufeld, “the entire financial

services industry is going to be reinvented with technology, and we think

there is US$ 1.25 trillion in the US alone that’s up for grabs.”33

The recent growth of FinTech is evidenced by the fact that the four largest

funding deals for FinTech startups have occurred in the past two years;

these four deals went to OnDeck Capital, IEX Group, Betterment, and

ShopKeep POS. $500.0

2008

$61.7 $62.6

$185.2 $173.5

$102.2

$271.1

$464.3

2009 2010 2011 2012 2013 2014

$450.0

$400.0

$350.0

$300.0

$250.0

$200.0

$150.0

$100.0

$50.0

$0.0

Figure 9: Total Nominal VC Funding for NYC FinTech Companies (in $millions)

Source: CB Insights DealSearch database

Betterment CEO Jon Stein doesn’t see his company as a disruptor; rather,

he sees Betterment’s existence as “more of an evolution”.34 Betterment and

other leading companies of the NYC FinTech ecosystem have been made

possible by an evolution of thinking regarding financial services, an evolution

of technology, and in many cases, an evolution out of necessity. Stein cites

the burden of planning and funding retirement as one such necessity, as the

burden has largely shifted from companies to individuals.35

While companies in the NYC FinTech ecosystem have taken inspiration from

Silicon Valley, the ecosystem has evolved in unique ways. There is a close

proximity between NYC’s tech and FinTech companies—closer than in Silicon

Valley. Recruiting a young, tech-savvy staff is easy due to the appeal of New

York City itself. According to Stein, 90% of Betterment employees are not

native New Yorkers; a company like Betterment needs to be in NYC, because

“the people that we want are here.” NYC FinTech companies benefit from

a tech talent pool as well as a financial services talent pool. While tech skills

are integral to the success of FinTech companies – according to Matt Trudeau,

Head of Product at equity trading venue IEX, “(IEX is) a tech company” –

familiarity with finance and with financial regulations is invaluable.36

FinTech in NYC has a promising future, yet barriers to further evolution

remain. There are many young tech-driven companies, but few are already

established and successful. It is hard for growing companies to find

experienced candidates for senior management positions. While the city’s

early-stage ecosystem is strong, a greater focus could be placed on

helping these young companies make the transition to mid- to late-stage

startups.37 Continued evolution will come through ongoing cross-industry

collaboration, facilitated by organizations such as the New York Tech

Meetup and the Empire Startups FinTech Meetup, and through the

continued genesis of NYC-based FinTech companies. According to

Trudeau, “the clustering effect is really critical.”38

December 2015 | 7

End Notes 1 Crain’s New York Business, “Fintech reshapes Wall Street.”

(http://www.crainsnewyork.com/article/20140902/TECHNOLOGY/

308319990/fintech-reshapes-wall-street) 2 Partnership for New York City (April 1 2014), “NYC Jobs Blueprint.”

(http://www.nycjobsblueprint.org/) 3 HR&A, “The New York City Tech Ecosystem: Generating Economic

Opportunities for All New Yorkers.”

(http://www.hraadvisors.com/wp-

content/uploads/2014/03/NYC_Tech_Ecosystem_032614_WEB.pdf) 4 Mandel, Dr. Michael and Dr. Jonathan Liebenau. (2014) “London:

Digital City on the Rise.” (http://mikebloomberg.com/files/

London-Digital-City-On-The-Rise.PDF)5 QCEW6 The New York Times, “Silicon Alley”

(http://www.nytimes.com/2002/03/24/nyregion/neighborhood-

report-silicon-alley-once-evocative-name-falls-victim-bursting-

high.html) 7 Kickstarter (https://www.kickstarter.com/team) 8 QCEW; All wages are expressed in 2014$, which were inflated

using the non-seasonally adjusted annual CPI for Urban Wage

Earners and Clerical Workers for New York-Northern New Jersey-

Long Island, NY-NJ-CT.9 The Wall Street Journal, “Trading Platform IEX to Apply for

Exchange Status.” (http://www.wsj.com/articles/trading-platform-

iex-to-apply-for-exchange-status-1437510024)10 Trudeau, Matt. Interview by Kyle Marks. 17 March, 201511 Crain’s New York Business, “Why Silicon Alley is all about

connections.”

(http://www.crainsnewyork.com/article/20141111/TECHNOLOGY/

141119965/why-silicon-alley-is-all-about-connections#report)12 ValueStream Labs, “The New Definition of FinTech.”

(http://www.valuestreamlabs.com/blog/2013/the-new-definition-

of-fintech) 13 CB Insights, “Disrupting Banking: The FinTech startups that are

unbundling Wells Fargo, Citi and Bank of America.”

(https://www.cbinsights.com/blog/disrupting-banking-fintech-

startups/)14 Kickstarter (https://www.kickstarter.com/) 15 Forbes, “SEC approves Title III of JOBS Act, Equity Crowdfunding

with Non-Accrediteds.” (http://www.forbes.com/sites/

chancebarnett/2015/10/30/sec-approves-title-iii-of-jobs-act-equity-

crowdfunding-with-non-accredited/) 16 CB Insights17 CoinDesk (http://www.coindesk.com/) 18 Transferwise (https://transferwise.com/) 19 BBC, “Money may make the world go round, but at what cost?”

(http://www.bbc.com/news/business-31639262) 20 The Wall Street Journal: Digits, “Banks Lure Fintech Startups with

Venture Funds”http://blogs.wsj.com/digits/2014/08/04/banks-

lure-fintech-startups-with-venture-funds/

21 CB Insights, “What Kind of FinTech Startups is JPMorgan Chase

Investing In?” (https://www.cbinsights.com/blog/jp-morgan-

fin-tech-startups/?utm_source=CB+Insights+Newsletter&utm_

campaign=50142df04e-

USVtopexits4_16_2015&utm_medium=email&utm_term=0_9dc051

3989-50142df04e-86560265) 22 Business Insider, “Why Wall Street is pouring money into companies

that want to eat its lunch.” (http://www.businessinsider.com/

wall-street-invests-in-fintech-startups-2015-3)23 Seattle Times, “Big banks embrace disruptive ‘fin tech’ startups.”

(http://www.seattletimes.com/business/insights-not-profits-

draw-banks-to-tech-startups-big-banks-court-tech-startups-for

insights-more-than-profits/)24 The Wall Street Journal, “Financial Giants Set Up Tech Hubs in

Manhattan.” (http://www.wsj.com/articles/financial-giants-set-

up-tech-hubs-in-manhattan-1430301601) 25 CB Insights, “Where is the Smart Money Going in FinTech?

Follow the Unicorns.”

(https://www.cbinsights.com/blog/fin-tech-vc-innovation/) 26 Bloomberg, “Why Bankers are Leaving Finance for No-Salary Tech

Jobs.” (http://www.bloomberg.com/news/articles/2015-03-

15/bankers-embracing-zero-salary-in-tech-may-make-

peers-obsolete)27 Accenture, “The Boom in Global FinTech Investment.”

(https://www.cbinsights.com/blog/global-fin-tech-investment-

accenture/) 28 Accenture, “The Future of FinTech and Banking: Digitally

disrupted or reimagined?” (http://www.accenture.com/

SiteCollectionDocuments/financial-services/accenture-future-

fintech-banking.pdf) 29 Tech Crunch, “NYC’s FinTech Innovation Lab Calling Tech

Talent to Wall Street.”

(http://techcrunch.com/2010/12/02/nycs-fintech-innovation/) 30 FinTech Innovation Lab NYC

(http://www.fintechinnovationlabnyc.com/) 31 CrunchBase, “ValueStream Labs”

(https://www.crunchbase.com/organization/valuestream-labs) 32 Estimize (https://www.estimize.com/) 33 Compass Magazine, “FinTech Frenzy”

(http://compassmag.3ds.com/7#/7/Industry/

FINANCIAL-BUSINESS-SERVICES) 34 Stein, Jon. Interview by Kyle Marks. 27 March, 201535 Ibid.36 Trudeau, Matt. Interview by Kyle Marks. 17 March, 201537 Stein, Jon. Interview by Kyle Marks. 27 March, 201538 Trudeau, Matt. Interview by Kyle Marks. 17 March, 201539 Finkelstein, Alex. Interview by Kyle Marks. 23 April, 2015

December 2015 Industry Trends & Insights, authored by Kyle Marks

About NYCEDC

The New York City Economic Development Corporation is the City’s primary engine

for economic development charged with leveraging the City’s assets to drive

growth, create jobs and improve quality of life. NYCEDC is an organization

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We make the City stronger.

About NYCEDC Economic Research & Analysis

The Economic Research and Analysis group from NYCEDC’s Center for Economic

Transformation conducts economic analysis of New York City projects, performs

industry and economic research on topics affecting the City and tracks economic

trends for the Mayor, policy-makers and the public as a whole. As part of its goal

of providing up-to-date economic data, research and analysis to New Yorkers, it

publishes a monthly New York City Economic Snapshot as well as the Trends &

Insights series of publications covering such topics as Tech Venture Capital

Investment, Borough & Local Economies, and Industry Economic Sectors. It also

sponsors the Thinking Ahead series of events that brings together thought

leaders and stakeholders to discuss and debate key issues shaping New York City’s

economic future.

Economic Research & Analysis Group

Michael Moynihan, PhD, Chief Economist & Senior Vice President

Eileen Jones, Vice President

Claudia Crawford, Assistant Vice President

Kristina Pecorelli, Assistant Vice President

Kyle Marks, Senior Project Manager

Kimberly Grauer, Project Manager

Matthew Gordon, Project Manager

For more information, visit nycedc.com/NYCeconomics

Contact us at NYCeconomics@nycedc.com

Center for Economic Transformation