In order for a city to be classified as a “hub”, it should consist of the following aspects (Stanford Social Innovation Review):
It’s therefore not a term that any city can just loosely adopt. New York, however, can rightfully claim its definition as a
So how did “The Big Apple” turn into “Silicon Alley”?
The number one reason
The city has long been one of the world’s greatest financial
Additionally, the city’s got a strong presence when it comes to trading in debt capital and public equity. Hedge funds, private equity firms and high monetary value M&A’s are also common here.
With this financial pedigree comes a lot of financial talent. Attracting and retaining top employees is important as these are the people that will drive modernisation and come up with innovative technologies to make financial services as frictionless as possible.
And it seems New York has a big global attraction. There’s close to 60,000 people working in the New York
This is the foundation that allows
New York is the leader when it comes to
One such area is the banking sector. Many legacy banks are in desperate need for innovation to keep up with the times. Fintech companies are jumping on this opportunity, either through disruption or forming partnerships for mutual benefit.
JPMorgan, New York’s biggest bank, spends about $9 billion a year on technology and innovation. In early 2016 it partnered with OnDeck, a small-business loan provider, to help process loans more quickly and cost-effectively.
In February this year, it also signed a deal with Roostify, an online mortgage processing platform, to ease the process of applying for a mortgage
Similarly, in 2016 Bank Of America teamed up with
But just as there is
CommonBond is a student loan solution that aims to make loans more affordable for students and Bond Street, a small business loan provider, is revolutionizing small business lending through technology, data, and design.
On the other hand, Betterment is taking on the wealth management sphere by using technology to achieve better returns and has about $9 billion in assets under management.
Fintech accelerators are intensive business development programs, aimed at startups to turn their ideas into a successful business. Through these support programs, New York is ensuring that it retains its reputation as a city for innovation.
The FinTech Innovation Lab was originally launched in New York and is a 12-week program that helps early-stage startups to test the value that they are able to give. It provides support to
Startupbootcamp Fintech New York is the leading accelerator program and much more intense. Available to selected startups only, it provides access to over 100 industry experts and office space at the core of New York’s
These accelerators prove invaluable to the growth seen in the New York
One of the most important factors for
3 of the top 10 global
Earlier this year, Nyca Partners raised $127 million for a
In 2016, the total
There are much more
LearnVest is a personal financial planning platform that raised $68 million in funding since it launched. The company was acquired by Northwestern Mutual for $250 million in 2015.
Oscar, known as the “Uber of health care”, is a health-insurance platform. The company reached a valuation of more than $2 billion and generates revenue of around $200 million a year.
These success stories are a testament to New York’s reputation as an incubator for innovation. Through a strong financial market, talented employees, opportunity for collaboration and disruption, support programs and generous investment, New York can rightfully stake its claim as a global