A new report details Delaware's role in Fintech.
Delaware in a Fintech Future, a recently released report highlights Delaware's role in the rapidly changing financial services industry.
The report, researched and authored by the Delaware Prosperity Partnership, First State Fintech Lab and the University of Delaware's Institute for Public Administration, details the latest developments and fast-moving technological innovation in financial services.
With brand power that includes JPMorgan Chase, Capital One, M&T Bank, WSFS Bank, and Citibank, the talent pool in banking and financial services has grown exponentially and accounts for 9% of all jobs in Delaware, the highest share of any U.S. state.
And now, in addition to being a destination location for traditional banking, fintech companies from around the world are choosing Delaware. Examples include Irvine, California-based Acorns, which opened a satellite operation at The Mill in Wilmington, Delaware; Delaware-based Fair Square Financial, which recently expanded and moved into a 22,000 square-foot facility in Wilmington, Delaware; and Marlette Funding, which is expanding and creating 200+ new jobs and making a $7.5M capital investment in New Castle County, Delaware.
Defining the fintech sector can be complicated, according to John Taylor, Director of Economic Research at the Delaware Prosperity Partnership.
"Some are referring to fintech as a standalone new industry," Taylor said. "Certainly, the term is relatively new, but a closer look suggest that all financial services companies are becoming fintech companies, including the well-established incumbents as well as early-stage startups."
No matter how broad or narrow the definition, Delaware is becoming the location-of-choice for financial and business services.
Delaware has the highest relative concentration of financial services jobs of any U.S. state. Among U.S. counties, New Castle County ranks third.
Since 2009, nearly 200 fintech patents were assigned to Delaware-based individuals and companies, ranking first in the United States on a per capita basis, and fifth in absolute terms.
Finance accounts for more than one-fifth of our state's GDP, the largest contribution of any sector.
Delaware has been a magnet for out-of-state direct investment by financial services firms in recent years, with $725 million invested since 2010. Wilmington is the leading destination in our region for this investment.
"We should think of fintech as the next wave of innovation in banking," says Taylor. "Advances in machine learning and data analytics are enabling new ways for consumers to access financial services."
Delaware in a Fintech Future is available at www.choosedelaware.com/fintechreport
About Delaware Prosperity Partnership
Created in 2017, Delaware Prosperity Partnership (DPP) is the nonprofit that leads the state of Delaware's economic development efforts to attract, grow and retain businesses. DPP works with site selectors, commercial developers and business executives responsible for deciding where to move or grow a business. The team helps with reviewing potential sites, cost-of-living analysis, quality-of-life intel and funding opportunities including available tax credits and incentives. For more information, visit www.choosedelaware.com
About First State Fintech Lab
The First State Fintech Lab (FSFL) is a nonprofit dedicated to nurturing and growing the financial technology ecosystem in Delaware by convening and collaborating across industries, disciplines, and demographics. The FSFL supports and helps foster novel public-private partnerships and dialogue; works to fill Delaware's talent pipeline; and supports expanding opportunities and access to low investment communities.
To learn more, visit firststatefintech.org
About the Institute for Public Administration, University of Delaware
The University of Delaware's Institute for Public Administration (IPA) addresses the policy, planning, and management needs of its partners through the integration of applied research, professional development, and the education of tomorrow's leaders. IPA is a research and public service center in the Joseph R. Biden, Jr. School of Public Policy & Administration. To learn more, visit www.ipa.udel.edu