Our client was the state economic development agency for one of the largest states in the United States. The state has a long history of a large manufacturing base across many sectors. It had also built a solid industry position in both banking and insurance, but had not yet seen significant participation in the rapidly growing Financial Technology space (FinTech). With the decline in manufacturing and heavy industry, the state is actively identifying and pursuing market sectors that provide significant opportunity for jobs and economic growth in the new economy.
The client hired Maven to look specifically at the FinTech market. We executed three aspects of the project: 1) Understanding the global FinTech market space and the attractiveness of each sub-segment within FinTech, 2) Benchmarking of the state’s existing asset base relative to FinTech industry leaders, and 3) Assessing the potential FinTech opportunity for the state in terms of jobs and economic growth.
Through the course of the project, the Maven team drew heavily upon its expertise in market assessment as well as two deep subject matter experts in FinTech brought in specifically for this project. We recommended the agency immediately begin a four pronged approach to building a FinTech sector in the state: 1) Recruiting FinTech scale-ups – companies who are in high-cost cities and need to scale in a more affordable location, 2) Enlist large financial services corporations to collaborate on helping to build the FinTech ecosystem, 3) Build a FinTech ecosystem, including a state sponsored, FinTech Accelerator to attract and spur FinTech startups, corporate sponsors and investment sponsors, and 4) Promote regulatory changes to streamline regulations in the state to make it an advantageous location for FinTech companies.
The client is actively executing the strategy the Maven team laid out.