July 18, 2012

Banks and Venture Capital Firms Focus on the Digital Frontier

at New York’s 2012 FinTech Innovation Lab Demo Day

IT innovations include intelligence-grade fraud detection and gaming tools for bank compliance training

NEW YORK; July 18, 2012 – ‘Big data’ and analytics took center stage at the second annual FinTech Innovation Lab Demo Day in New York City today, as a select group of entrepreneurs supported by Wall Street leaders and venture capitalists provided a glimpse into the financial industry’s technology innovation and investment priorities. The graduates from this year’s FinTech Innovation Lab who presented included BillGuard, Centrifuge Systems, Digital Reasoning, EidoSearch, True Office and Visible Market.

The six entrepreneurs demonstrated their solutions to dozens of financial industry, venture capital and technology executives, following a 12-week mentorship program with executives from the world’s leading banks and venture firms. The Lab was created by the New York City Investment Fund, the economic development arm of the Partnership for New York City, and Accenture (NYSE: ACN) to help sustain and grow New York City’s role as the global leader in financial services and to support job creation in its technology sector. This year’s Demo Day was held at the Credit Suisse headquarters in Manhattan.

“New York City has continued to expand its role as the center for financial technology innovation, and the second year of our program has attracted companies from all over the country to our city,” said Maria Gotsch, President & CEO of the New York City Investment Fund. “This year’s class is on the pathway to becoming the next generation of successful financial technology entrepreneurs in New York City. Each has been mentored by top executives in financial services as well as successful financial technology entrepreneurs. The result has been the creation of in-demand commercial products that will have significant impact in the marketplace.”

“American Express is pleased to support the FinTech Innovation Lab, which has proven to be an effective vehicle to connect large financial services firms with entrepreneurial technology companies.” said Kenneth I. Chenault, Chairman and CEO, American Express Company and Co-Chairman, Partnership for New York City. “We are able to support the growth of the next generation of fintech entrepreneurs in New York City, while getting an inside look at cutting edge technology.”

The 2012 FinTech Innovation Lab class was selected in March from a large field of early and growth stage companies that applied to participate. The firms were evaluated and advised by chief technology officers from the world’s leading financial services firms, including American Express, Bank of America, Barclays, Capital One, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley, State Street and UBS. This year’s Lab provided workshops and panels led by top financial and technology industry executives, including American Express Chairman and CEO Kenneth I. Chenault, CA Technologies CEO William E. McCracken and Infor CEO Charles E. Phillips. Participating venture firms included Contour Venture Partners, New York City Investment Fund, Rho Ventures, RRE Ventures, Village Ventures and Warburg Pincus.

The Digital Frontier at Center Stage

Today’s demos in New York reflect the financial industry’s growing emphasis on ‘big data’ solutions – managing and deriving value from the terabytes and petabytes of raw, unstructured data that proliferates on social and mobile networks and the vast IT infrastructures of financial institutions.

Innovations developed by this year’s class include advanced analytic technologies designed to help banks identify risks and fight financial fraud. Lab participants also developed analytic search tools and mobile applications designed to reduce market ‘information overload’ and help investors better visualize market trends. One participant developed mobile gaming tools for regulatory compliance training to better address the modern needs of the workforce.

“The world’s leading financial institutions understand that mastering ‘big data’ is critical to their success,” said Bob Gach, global managing director of Capital Markets at Accenture. “Information is the lifeblood of financial services. As we enter a new age of big data and the proliferation of social and mobile networks, banks will need to leverage emerging analytical technologies and learn from the critical lessons of other industries, such as intelligence and defense. Big data and analytics will play a central role in helping institutions reduce risk, identify growth opportunities and rebuild profits. We’re proud to be part of this knowledge-transfer occurring at the Lab.”

According to International Data Corporation (IDC), the market for big data technology and services is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015. The amount of digital information created globally in 2005 was less than two-tenths of a zettabyte; in 2020 the world is expected to produce more than 34 zettabytes of digital information, according to IDC.

2012 FinTech Innovation Lab Participants:

“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 Joseph Squeri, Chief Information Officer for Barclays Corporate and Investment Banking, Wealth and Investment 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. This year’s FinTech Lab participants demonstrate how innovation helps drive local employment and economic development.”

“The FinTech Innovation Lab is a great opportunity for us to explore new, ground breaking technologies that will help drive our innovation agenda,” said Monique Shivanandan, Chief Technology Officer, Capital One. “I look forward to seeing what these entrepreneurs have to offer, and continuing to nurture promising technologies.”

“Citi has supported the FinTech Innovation Lab since the program’s inception,” said Steve Randich, Co-Chief Information Officer, Citi and Co-CIO, Institutional Clients Groups. “A program that connects industry leaders with entrepreneurs who push the boundaries through continued innovation is beneficial not just for Citi, but for the entire financial services community.”

“Credit Suisse is pleased to support the FinTech Innovation Lab as part of our ongoing strategy to deliver the most technically innovative solutions to our clients,” said Nigel Faulkner, CIO, Investment Banking at Credit Suisse. “We’ve been very impressed with the products this year’s finalists have developed and look forward to working with them further as the program continues to grow. The improved access provided by being local to us here in New York is beneficial and naturally supports New York City’s economic development goals.”

“Participation on the FinTech Innovation Lab program gives us a unique opportunity to look at promising new technologies and to support its mission of fostering technology innovation in New York City,” said Robert Torop, director, Deutsche Bank Securities, Inc.

“The results of this year’s competition leave no doubt that innovation around big data is a serious focus for the financial services industry,” said JPMorgan Chase Chief Information Officer Guy Chiarello. “The ideas presented by this group of participants offer a window into technology innovation for big data and analytics that will help firms find the value in the huge amounts of data they work with on a daily basis.”

“Morgan Stanley is proud to participate in the FinTech Innovation Lab and continue our long standing commitment to innovation in financial technologies,” said Stephen Sparkes, CIO for Technology and Information Risk at Morgan Stanley. “We have been impressed by the quality of this exciting program and the companies that it attracts, and we appreciate the opportunity to support leading-edge development in New York City.”

“Ensuring that data and analytics are accessible across the enterprise has not only permeated many financial services organizations, but is also challenging the industry to think differently about how we approach IT,” said Chris Perretta, Executive Vice President and Chief Information Officer at State Street. “We are pleased to continue our support for the FinTech Innovation Lab at an exciting juncture for IT professionals in our industry.”

“The scale and scope of the changes that ‘big data’ brings about have reached an inflection point,” said UBS Group CTO Andy Brown. “Financial Services companies capture trillions of bytes of information about markets, clients, trades and operations. Several of the companies in this year’s FinTech Innovation Lab class enable analysis of information in real time, which presents an opportunity to create unprecedented business advantage, and enables sophisticated questions to be answered quickly, redefining the art of the possible.”

“We are delighted to see that the FinTech Innovation Lab is ramping up in New York City and further contributing to the rise of the entrepreneurship and startup culture already well-established within the new media sector,” said Habib Kairouz, managing partner from Rho Capital Partners.

“The FinTech Innovation Lab has been a major contributor to the fast growing entrepreneurial sector in New York,” said James Robinson III, Co-Founder & General Partner, RRE Ventures. “One of its most valuable contributions is connecting senior business and IT managers of large financial organizations with entrepreneurs and their companies. This interaction has led to an iterative process between the two as they match priority needs with product design.”

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 249,000 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. 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.

About The New York City Investment Fund

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. Partnership companies account for nearly 7 million American jobs and contribute over $740 billion to the national GDP.

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Sean Conway


+ 917 452 6444

+ 917 592 5744


Farrell Sklerov

NYCIF/PFNYC / Rubenstein Communications

+ 212 843 8289