The Boston FinTech Ecosystem 1 Boston Financial Services Leadership - - PowerPoint PPT Presentation

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The Boston FinTech Ecosystem

William H. Guenther, Chairman, CEO, and Founder, Mass Insight

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Boston Financial Services Leadership Council Co-Chairs: Robert L. Reynolds President and CEO, Putnam Investments & Great-West Financial Clayton Deutsch CEO, Boston Private Financial Holdings

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The Mass Finance Sector - A Complete Portfolio:

• 6% of total state employment:
• 174,000 jobs
• 10% of the state’s total output:
• $41.5 billion in Gross State Product
• 20% of business taxes in Massachusetts

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A Growing Startup Ecosystem

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The Challenge:

Source: UK FinTech: On the cutting edge (EY)

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Support and Attract Business Through Talent Clusters

Talent clusters are concentrated geographic pools of talent focused on a particular technology or specialized discipline: Proximity still matters Critical mass is important Clusters need stars and supporting talent Regions that are global innovation leaders and offer world-class training and education programs will attract talent clusters

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Industry Government Universities

The Innovation Triangle Strategic alliances are key to R&D leadership and economic growth

To Respond to Innovation Challenges, Involve Multiple Stakeholders

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Boston has many key assets that support a FinTech ecosystem:

▪ Massachusetts is third among all states in assets under

management

▪ Massachusetts received the

third most VC funding of all US states in 2015 with over $5.8 B and over 400 deals

▪ Massachusetts residents have

a higher percentage of graduate degrees than any

• ther state in the US

▪ Boston is home to some of best known universities in the

world

SOURCE: Milken Institute, Bloomberg News, PWC MoneyTree, Mass Insight, Boston Globe, US News & World Report.

▪ Second highest number of patents

per person in the country

▪ Boston is where the mutual fund and ETF were

invented, making it a home of financial innovation

▪ Massachusetts ranked number one in Education by US

New & World Report

▪ Many technology companies have

already opened up offices in Cambridge because of the culture

▪ Home to many of the country’s

most prominent VC’s

1 2 3 4

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Boston FinTech Developments:

1. FinTech Sandbox, DCU FinTech Innov. Center, BOS FinTech Meetup 2. MIT FinTech Club/Conference

New Developments:

1. Annual FinTech/Data Conference 11/30/17 2. FinTech Collaborative

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Launching Boston FinTech Collaborative

A collaborative will be leveraged to...

Effectively engage academia Provide product development mentoring Train, attract, and retain talent

▪ Physical space, which brings

together FIs, startups, VC’s, and academia

▪ Identify grand challenges ▪ Design Partnerships: Structured

collaboration between FIs, startups, and academia

Stand up at-scale collaborative

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FinTech Forecasting Roundtable, May 2016 Forecasts: 1) Now: Front end changes in the customer experience will be critical 2) Next 5 years: “Back end” and capital market technology development 3) 5-10 years: Blockchain is a longer term play. 4) For Boston, Digital strategies, predictive analytics and secure access to data represent major opportunities generally 5) Collaborators will win

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Massachusetts could establish a vibrant FinTech ecosystem by tackling potential “grand challenges”:

Challenge What Boston brings...

Automating the workforce

▪ Strong base of B2B SAS providers (both in FinTech and

• ther areas)

▪ Leading research programs in machine learning, AI, and

robotics Securing the world’s financial data

▪ Large concentration of data scientists graduating from

local universities each year

▪ Deep bench of research scientists already on leading

edge of machine learning, AI, and crypto-currencies

▪ Strong existing cyber security sector ▪ Deep expertise in human behavior and social sciences

Accurately assessing the most complex risks

Description

▪ Leveraging machine learning and AI to

develop solutions to a variety of back

• ffice pain points

▪ Providing automated solutions to the

increasing regulatory burdens faced by global FI’s

▪ Longer term, developing robotics

solutions for a variety of manual tasks

▪ Leveraging advanced analytics and

machine learning to provide innovative cyber security solutions

▪ Building secure transaction structures by

harmonizing blockchain technology

▪ Revolutionizing life insurance

underwriting via big data techniques

▪ Providing tools to asset managers and

banks that enable more precise assessment of risk faced

▪ Bring new insurance products to market

(e.g., cyber insurance)

▪ Large concentration of data scientists graduating from

local universities each year

▪ Headquarters of large insurance companies and asset

managers

▪ Leading research programs in machine learning and

advanced analytics

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Thank you

William H. Guenther Chairman, CEO, and Founder Mass Insight Global Partnerships wguenther@massinsight.com financialtechnologyBoston.com @massinsight

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Discussion and Q&A

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Participants:

1. Ian Sheridan, Principal/Managing Director, Vestigo Ventures 2. Sumedh Mehta, CTO, Putnam Investments 3. Brett Huneycutt, Co-Founder & COO, Wealthsimple 4. Roy Kao, Senior Advisor – Finance & Commerce, MaRS DD

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Key Themes for Discussion:

1. Why Now? 2. Collaboration is Key

Key Questions:

1. What are the industry challenges &

• pportunities?

2. What technologies can be applied? 3. What are the resources?

Developing talent • Growing ventures • Opening markets

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MaRS Overview

• Roy Kao, Senior Advisor – Finance & Commerce, MaRS DD

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MaRS works with partners to catalyze, accelerate, scale and diffuse innovaAon. We help entrepreneurs start and grow successful global companies. Together, we help Canada prosper.

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