The Growth of New York City as a Fintech Hub
New York City (NYC) has long been regarded as the financial capital of the United States. Let’s take a look at the New York City Fintech Hub, which arose as a global centre of trading in debt capital markets and public equities in the nineteenth century.
The rise of NYC as a fintech hub was aided by a number of factors. As an international financial centre, the city attracted fintech investors who knew they’d be able to tap into a pool of readily available financial talent.
Second, the city’s old-school banks, which have been there for hundreds of years, have played and continue to play an important role in recruiting fintech businesses looking to partner for mutual gain. The value of financial technology has been recognised by firms such as Goldman Sachs and JP Morgan. For example, Goldman Sachs has invested in a number of fintech firms and continues to nurture web teams, designers, and product managers.
The main stock exchanges, the NYSE and NASDAQ, are now based in New York City. The city currently features one of the world’s most sophisticated fintech ecosystems. Fintech companies with headquarters in New York include:
EquityZen is dedicated to increasing the compensation of startup employees. The firm has aided in the simplification of equity compensation plans that benefit corporations, shareholders, and owners.
SecondMarket offers software that has aided in the efficiency of private securities transactions. The Bitcoin Investment Trust is credited to SecondMarket, which was bought by NASDAQ in October 2015.
The ACE Portal is merely a tool for brokers to manage private placement opportunities. The platform also allows investors to see and analyse investment options while also allowing brokers to target certain investor groups.
TradeBlock is a venture-backed startup that provides financial institutions with tools that assist them improve their overall performance through the usage of blockchain technology. TradeBlock is a powerful bitcoin trading platform for businesses. It provides market insights, compliance automation, and order management, among other services.
OnDeck is primarily a small company finance platform. OnDeck has provided loans to businesses in every state in the United States as well as Canada. OnDeck Score is a unique credit scoring system that analyses massive amounts of data in order to provide a rapid and accurate credit decision.
In general, the fintech sector in NYC is very innovative, with companies offering a variety of services such as:
Lending between strangers
Transactions at the point of sale
According to Matthew Wong, a senior research analyst at CB Insights, the number of fintech firms in NYC will grow over time. According to him, present fintech personnel will shift to other enterprises, while CEOs will become angel investors, resulting in a larger fintech ecosystem.