By Nora Caley
From the July/August 2023 Issue
From paperless billing to cryptocurrency, technology is revolutionizing the financial industry. Financial technology, or fintech, is a broad area that encompasses many aspects of finance that make transferring money easier, faster, and safer. The segment is growing as longtime companies such as banks and insurance companies upgrade their processes and exciting, fast-moving startups gain investments.
According to a report from Mordor Intelligence, the U.S. Fintech Market totaled $4 trillion in 2022, and is expected to register a CAGR of 11% from 2019 to 2028. That’s due to growth in the various segments, including digital payments such as mobile payments and e-commerce, digital investing such as online brokers and robo-advisers, alternative funding such as crowdfunding, and online banking and online insurance marketplaces.
Investors are eager to play a role in the growth of fintech. Also, according to Mordor Intelligence, in 2021 there were 8,775 fintech start-ups in the U.S. The leading segment is digital payment, valued at over $ 1.2 trillion in 2021. It’s a pertinent category for many, as 75% of global consumers have used at least one fintech service to pay online or on a mobile application, and 70% of U.S. customers say that mobile banking will represent the future.
More information comes from the World Bank, which noted that the concept of mobile money has gained popularity, as the share of adults making or receiving digital payments grew from 35% in 2014 to 57% in 2021. While the pandemic-related explosion in e-commerce is one factor, the advances in technology also make it easier for consumers to access savings, credit, and insurance products safely and conveniently.
Here is how one location is attracting fintech and related companies.
HARTFORD, CT: THE INSURTECH CAPITAL OF THE WORLD
In the heart of New England, the city of Hartford, Connecticut has emerged as a beacon of innovation, spearheading the transformation of the insurance industry through its vibrant ecosystem. Hartford has a powerful combination of industry expertise, collaborative spirit, and a supportive state business environment, which was recently ranked #6 in the country by U.S. News & World Report.
“Hartford’s long-standing reputation as the Insurance Capital of the World, combined with its growing Insurtech ecosystem, creates a unique synergy,” says Gene Goddard, Chief Business Investment Officer of MetroHartford Alliance. “The city serves as a hotbed for innovation, attracting top talent, fostering collaboration, and driving the future of insurance technology.”
Hartford’s ascent to become the “Insurtech Capital of the World” can be attributed to its unique combination of strengths. Its historical connection to insurance industry giants, which dates back centuries, has cultivated a deep pool of forward-thinking industry experts, and has become the go-to destination for Insurtech companies looking to disrupt the status quo and offers unparalleled opportunities for those seeking to revolutionize the insurance industry.
“The Hartford market continues to build on its reputation as a leader of Insurtech excellence,” says Sabine VanderLinden, Co-Founder, Chief Executive Officer and Managing Partner of the financial services firm Alchemy Crew. “As a past creator of the Hartford Insurtech Hub, I’ve seen that there is a firm foundation in Hartford to grow more and more insurance ingenuity and talent.”
The collaborative nature of the region’s ecosystem plays a pivotal role in driving progress. Hartford serves as a hub where insurance giants, insurtech and fintech startups, academia, and government entities converge to exchange ideas, collaborate on projects, and drive the industry forward. This synergistic environment fuels rapid innovation and offers tremendous opportunities for partnerships and co-creation.
Connecticut provides an environment that is conducive to growth and expansion across a diverse array of industries. Read more…
In collaboration with the University of Hartford, UConn’s Connecticut Center for Entrepreneurship and Innovation (CCEI) recently launched an Insurtech Venturing course providing students with direct connections and opportunities to work with local Insurtech startups and organizations.
Beyond its rich legacy and collaborative spirit, Hartford boasts a diverse and talented workforce. The city and state are home to renowned universities, producing graduates with expertise in insurance, finance, data science, and technology. These skilled professionals, combined with the city’s focus on fostering entrepreneurship, create an ideal environment for Insurtech companies to thrive.
Connecticut continues to embrace the future of technology and insurance and engage with local and global FinTech and Insurtech opportunities. The momentum continues to build, ensuring Connecticut remains “The Insurance Capital of the World” and leveraging the state to become “The Insurtech Capital of the World.” Hartford is where innovation and insurance converge for unparalleled success.
Visit www.metrohartford.com for more information.