|Wanted: Cutting-edge financial technology innovators|
The FinTech Innovation Lab, an annual program that promotes financial technology development, kicked off its search for the nation’s top technology innovators.
The Lab, now in its second year, is run by the New York City Investment Fund—the economic development arm of the Partnership for New York City—and Accenture. The goal of the program is to help sustain and grow New York City’s role as the global leader in financial services.
The Lab is looking for the most promising early- and growth-stage companies that have developed cutting-edge technology products targeted at financial services institutions. During the 12-week program, selected companies are partnered with senior level bank executives who work with the entrepreneurs in tailoring their new products to the needs of the financial world.
Technology innovation will play an increasingly vital role in the financial services industry. The U.S. retail and corporate banking sector alone is expected to increase spending on new IT investments and innovations by one-third through 2013—from $10.6 billion in 2011 to $14.1 billion in 2013, according to Celent. The FinTech Innovation Lab was founded on the premise that, as the leading financial center, New York City is positioned to be the global leader in financial services technology development well into the future.
The chief technology officers and senior technology executives from 12 financial services firms will pick up to six entrepreneurial companies to participate in the Lab, which begins in May 2012. Bank of America, Barclays Capital, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street, and UBS will be joined this round by American Express and Capital One.
Several venture firms will also support the Lab, including Contour Venture Partners, Rho Ventures, RRE Ventures, Village Ventures, and Warburg Pincus.
An informational meeting for potential applicants is scheduled for January 10. To be accepted, applicants must have at least a working beta version of their technology that is ready to be tested for either the institutional or retail market. In addition to mentoring and feedback, winning companies are also entitled to receive $25,000 and work space.
The six companies that participated in the inaugural Lab developed strategic relationships with their bank mentors that helped them refine their business models, identify new areas of opportunity, and accelerate sales growth. Their products ranged from risk management and analytical tools to a new credit analysis model that leverages social media.
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