All signs suggest that we’ve entered into a golden age of fintech. Technologies like robotics, cloud computing and data analytics are accomplishing things that would have been unthinkable just six years ago. As mentioned in the report, Fintech’s Golden Age, global investment in fintech ventures reached $22.3 billion in 2015—more than 12 times what it was in 2010. More than 50 percent of that activity was in North America, where New York City is quickly emerging as one of the top spots to watch.

Follow the financing

Between 2010 and 2015, we saw the number of fintech deals in New York City increase from 34 to 101, and fintech financing grow from $216 million to $2.3 billion. In the first quarter of 2016, the city received $690 million in fintech financing and surpassed Silicon Valley’s $511 million for the first time ever. Why? It’s pretty simply, really. New York City offers unparalleled access to potential customers and partners in the financial services sector, plenty of talent and an increasingly entrepreneurial community.

Collaboration over competition

What makes New York City’s fintech scene particularly exciting to watch is the recent shift toward collaborative ventures. Globally, fintech is still in competition with the financial services sector, with roughly six out of every 10 deals going to fintech companies that are seeking to compete with financial institutions. In New York City, however, the tides have turned.

Over the past five years, the share of collaborative fintech ventures in the city more than doubled, from 37 percent to 83 percent. We’re seeing a similar movement toward collaboration in Silicon Valley and Asia Pacific, but on a much smaller scale. And in Europe, the pendulum has actually swung in the opposite direction, with fintech financing for collaborative ventures falling from 38 percent in 2010 to just 14 percent in 2015.

Incubating success

Read the report.
Read the report.

With the rise of collaborative fintech ventures in New York City comes growing interest in innovation incubators and accelerators, such as the New York FinTech Innovation Lab. Founded by Accenture and the Partnership Fund for New York City, the lab is now in its sixth year of helping early- and growth-stage fintech companies accelerate their development by connecting them with top bank and venture capital executives.

Results to date have been impressive. In the lab’s inaugural year, 10 banks participated; in 2016, there will be closer to 30. Since graduating from the program, the lab’s 31 alumni companies have raised a remarkable $296 million in financing.

In the current US regulatory climate, which makes it difficult for fintech startups to grow and scale on their own, the financial services sector is in an excellent position to partner. It’s a matter of dedicating resources, streamlining processes to be more “startup friendly” and letting the world know you’re ready to innovate.

For more on how fintech is evolving in key regions around the world, check out Accenture’s latest report: “Fintech’s Golden Age