December 05, 2011
The New York City Investment Fund and Accenture
To Identify the Nation’s Best Financial Technology Innovators
The FinTech Innovation Lab Accepting Applications for its 2012 Class
NEW YORK; Dec. 5, 2011 – The FinTech Innovation Lab, an annual program that promotes financial technology development, has 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 (NYSE:ACN). The goal of the program is to help sustain and grow New York City’s role as the global leader in financial services. The application will be available on the Lab’s website, www.fintechinnovationlab.com, starting today.
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, a financial industry research firm. 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 10th. 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.
“As the headquarters of the world’s largest financial services firms, New York is the best location to develop and market the technology this industry needs,” said Kathryn Wylde, President & CEO of the Partnership for New York City
“The Lab provides a unique opportunity for early- and growth-stage fintech companies to interact with senior executives at the top financial services firms in the city,” said Maria Gotsch, President & CEO of the New York City Investment Fund. “The companies that participated in the inaugural class have accelerated their growth as a result of the valuable feedback, mentoring and relationships developed through this program.”
“This is an exciting time for financial technology innovators in the U.S.,” said Chris Wearing, managing director of Accenture’s banking industry practice in North America. “Banks’ investments in IT innovation are on the rise, as they face increasingly complex customer demands and continuing profit pressures. To help the industry respond, this Lab brings to bear some of the best and brightest technology ideas in an organic way, with the direct support not only of venture capitalists but of the banking industry’s leaders themselves.”
“New York City is extraordinarily well positioned to be the capital of financial technology given the size and scope of our finance sector and the robust growth of our start-up culture,” said Deputy Mayor Robert K. Steel. “On behalf of Mayor Bloomberg and our entire Administration, we look forward to seeing the results of the second annual FinTech Innovation Lab.”
“We’re living in a world where technology is evolving and commerce as we know is being rapidly redefined,” said Jason Hogg, President of American Express Serve Enterprise. “Whether it’s financial planning, money management, deals and offers or mobile solutions, customers are demanding better products and more tailored solutions to fit their needs. The FinTech Innovation Lab provides a terrific opportunity for more traditional financial services companies to look outside the box at nimble startups who are innovating every day.”
"Barclays is committed to supporting the FinTech Innovation Lab, which is uniquely positioned to foster economic growth and technical innovation for both New York City and financial services," said Joe Squeri, Chief Information Officer for Barclays Corporate and Investment Banking and Wealth Management. "Through the Lab’s sponsorship, financial service firms are helping develop jobs and opportunities in New York City so that entrepreneurs can to turn their next great idea into business reality."
“Information Technology is the central nervous system of Capital One,” said Monique Shivanandan, Chief Technology Officer, Capital One. “In order to deliver great products and services to our customers, innovation and strategic technology investment must be core to all we do. The Innovation Lab is a great opportunity for us to nurture promising technology ventures and inspire new thinking here at Capital One.”
"We’ve seen a direct benefit from our participation in the FinTech Innovation Lab," said Steve Randich, CIO for Citi’s Institutional Clients Group. "Any program that connects technology users, especially in large organizations like Citi, with entrepreneurs who are responsible for continued innovation in our field ultimately helps all of us in the bank technology community and in the community at large."
“At Credit Suisse, we value innovation and we welcomed the opportunity to work closely with participants in the FinTech Innovation Lab,” said John Burns, Managing Director, Information Technology, Credit Suisse. “This relationship has provided us with access to sharp minds and given us the chance to directly influence new thinking that will drive value in our industry. Our business faces a daunting set of challenges. Injections of creative ideas that make them manageable or even turn them into opportunities are essential to our progress as an industry.”
“Technology is a strategic weapon for financial services firms. Companies that leverage technology effectively can create powerful opportunities to grow their business, increase shareholder value, and improve customer satisfaction,” said Guy Chiarello, Chief Information Officer for JPMorgan Chase & Co. “The first class of FinTech startups delivered impressive ideas. We are thrilled to once again be participating in and supporting the FinTech Innovation Lab, and look forward to fostering this next class of talented technology innovators.”
“The program is highly effective in bringing users of technology, investors and entrepreneurs together,” said James D. Robinson, III, General Partner of RRE Ventures. “The networking opportunity for the entrepreneurs with CIOs from global financial institutions is a unique experience. For investors, it gives us a chance to see potential investments early, as well as help advise start-up executives whose products have promise for global reach.”
"It was a huge honor to be part of the FinTech Innovation Lab initiative in 2011 and I look forward to participating again in the search for new innovative talent,” said Michele Trogni, UBS Group CIO. “Our industry is undergoing such fundamental change that it’s only through strong innovation that we will be able to face all the current demands and continue to thrive. UBS is delighted to be part of this exciting initiative."
“Warburg Pincus is pleased to be a sponsor of the FinTech Innovation Lab, which is attracting innovative emerging companies to NYC by leveraging one of our strategic advantages: the concentration of financial institutions in the city,” said Cary Davis, Managing Director, Technology, Media and Telecommunications Group, Warburg Pincus
About the Sponsors
The New York City Investment Fund (www.nycif.org) is the vision of Henry R. Kravis, founding partner of Kohlberg Kravis Roberts & Co., who serves as its Founding Chairman. The Investment Fund has raised over $110 million to mobilize the city’s world financial and business leaders to help build a stronger and more diversified local economy. It has built a network of top experts from the investment and corporate communities who help identify and support New York City’s most promising entrepreneurs in both the for-profit and not-for-profit sectors. The Fund is governed by a Board of Directors co-chaired by Russell L. Carson, General Partner of Welsh, Carson, Anderson & Stowe; and Richard M. Cashin, Managing Partner of One Equity Partners. The Investment Fund is an affiliate of the Partnership for New York City (www.pfnyc.org), an organization of the leaders of New York City’s top corporate, investment, and entrepreneurial firms. They work in partnership with city and state government officials, labor groups, and the nonprofit sector to promote the interest of the city and its neighborhoods. The Partnership carries out research, policy formulation, and issue advocacy at the city, state, and federal levels, leveraging the resources and expertise of its CEO and Corporate partners.
Accenture is a global management consulting, technology services and outsourcing company, with approximately 236,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. Through its Skills to Succeed corporate citizenship focus, Accenture is committed to equipping 250,000 people around the world by 2015 with the skills to get a job or build a business. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
Michael Scotto (PFNYC/NYCIF)
Kristopher Kagel (Accenture)
Office: (917) 452-0247
Mobile: (201) 221-6534
Sean Conway (Accenture)
Office: (917) 452-6444
Mobile: (917) 592-5744