For start-ups specializing in finance, the West Coast of the United States has a special pull. The region was an incubator for the now IT behemoths like Amazon and Facebook. The San Francisco geographical area has nine of total 15 American financial technology companies valued at one billion US Dollars or more. These companies, with addresses in Bay Area, are not public. Prominent among these companies are Stripe, the online payments specialist, Social Finance, the online lender, and Credit Karma, the finance website.
Helped by businesses
If FinTech Innovation Lab has its way, this West Coast attraction will soon be history. This program is backed by New York businesses. It assists start-ups in the financial services space to sell their services in an area dominated by established companies- large banks along with other finance companies. The list of backers in this program includes Henry Kravis of Kohlberg Kravis Roberts, the private equity firm, Fred Wilson, who co-founded Union Square Ventures, the venture capital firm and the former American Express head, James D. Robinson.
The 'Fintech' term encompasses a number of start-ups. These are, more often than not, provided funds by the venture capital investors. They want to apply pioneering technology in a number of areas like payments, online lending and also investing. Such start-ups have enjoyed the support of a number of investors. This happened as banks were forced to concentrate on complying with all regulations. The latter must also follow more stringent laws on the rebuilding of capital. The accelerator term in this context refers to FinTech Innovation Lab which provides about six start-ups every year an opportunity to interact with the top financial firms. Products can be honed and their finders can learn how to fit themselves into banks' budget totaling about $270 million dollars globally.
The lab began in 2010. It was a method to shore up the economy of New York city post the financial crisis of 2008. Accenture, along with Partnership Fund for New York City co-sponsored it. The latter is a branch of a non-profit aim Partnership for New York City. David Rockefeller set up the latter in 1979. This lab is crafted for companies wishing to partner with large financial institutions, and not to compete with them. One aim is to push early-stage companies to the front so that the more established businesses can see the number of interesting things which can be done in this area.