Massachusetts eyes fintech incubation—and, hopefully, a bigger boom
/Through public-private partnerships, conferences, and communities, the state has encouraged cross-pollination between academic institutions, investor communities, regulators, and regional talent pools. Last year, Massachusetts saw a record-breaking $3.1B raised in fintech venture funding.
Why should we care?
Initiatives emerging from Massachusetts highlight how committed and competitive states have become to attract fintech players. States have to consider and showcase their unique strengths—which can vary significantly. Massachusetts has flaunted the state’s academic prowess, in addition to its existing and thriving financial sector. “The Commonwealth is in a unique position to fan the flames of a thriving fintech ecosystem thanks to its access to world-class talent, academic institutions, an established investor community, and being home to startups that are disrupting industries and making others run more efficiently,” said Secretary Mike Kennealy, Housing and Economic Development Secretary of Massachusetts, and Mike Fanning, Head of MassMutual U.S. Kennealy and Fanning co-chair the Mass Fintech Hub, which brings together entrepreneurs, academics, regulators, and investors to build a cohesive fintech community in the state. The Fintech Hub has hosted a Fintech Bootcamp for the state’s student population, which, the co-chairs note, helps widen “the potential pool of talent for a growing fintech sector, one that reflects the population of global cities and that is mindful of the need for intersectional and inclusive tech-based solutions.” While other states can offer different unique selling points—such as competitive utility rates or friendly regulators—Massachusetts sees fintech education as a public good that other states should invest in as well. The race for fintech investment may seem frenzied, but long-term investments like bootcamps and youth-focused initiatives promise long-term benefits.