2023 the “year of disruption”? Mass Fintech Hub has already adapted.

By Mike Fanning, Head of MassMutual US, Co-Chair, Massachusetts Fintech Working Group

In 2021, Massachusetts fintech had record-breaking venture funding with $3.8 billion raised, but 2022 told a different story, with substantial tightening in the sector based on economic factors and changes in the tech environment. 2023 will prove to be a pivotal year with significant disruption– for better or worse – based on factors including new technology, market volatility, new business philosophies and workplace demands, and the next generation of fintech leadership.

The emergence of fintech in Massachusetts

Fintech has become a $110.57 billion global market as of 2020, and it is projected to reach nearly $700 billion by 2030 according to Allied Market Research. The Commonwealth accounts for nine percent of US fintech – an important piece of an emerging sector whose impact has reverberated throughout many aspects of the regional economy, from financial services to healthcare and the rising innovation economy.

Economies recover through innovation and adaptation. Fintech is an industry that is especially reliant on this era of change, providing people and businesses with access to new, game-changing services. Consumers desire products and services that are more accessible and faster, including innovations such as touchless payment systems and digital banking services. Here in Massachusetts, fintech is helping us keep pace with the technological shift underway and address new demands from younger consumers.

By supporting our 350+ fintech companies – an irreplaceable engine of economic growth – we receive far-reaching benefits to industries beyond finance, including healthcare, insurtech, and cybersecurity, which opens up increasing possibilities for our future. Through collaboration, innovation, and maintaining a long-term vision of economic opportunities, we can build a stronger economy with fintech as a key driver of growth.

Why Massachusetts?

Massachusetts is well-positioned to harness the fintech opportunity. It has been a center for success in financial services and brings new technology to the market based on its strong private sector, resources for building a business and academic institutions across the Commonwealth.

The creation of the Mass Fintech Hub in 2021 was a catalyst for building our fintech ecosystem and helping make Massachusetts the top fintech hub globally. It is a unique and powerful undertaking that is leading to success, not the least of which is the collaboration of leaders from many different disciplines – VCs, startups, academia, corporates, accelerators, and the public sector – that have come together around this effort and maintained a proactive, engaged, and highly effective organizing body.

A Strong Foundation for Growth

Some of the goals we set in 2021 for 2022 included:

Establishing more programming to support fintech; and

Articulating the value of our community’s work to expand this ecosystem.

We are pleased to have achieved both of these goals.

In terms of programming, we greatly expanded our efforts to include:

Two Fintech Bootcamps in Worcester and Springfield with 100+ students participating from 20+ schools;

Two Career Fairs with over 500 students participating from 12+ schools across the state;

Three Fintech Forums with over 200 participants from across the fintech ecosystem;

The launch of our mentoring program, with 50+ student mentees representing 8+ schools and 30+ mentors from 12+ partner firms;

A strong presence during Boston Fintech Week, holding four events attracting 300+ participants; and,

The launch of an Angel Investor Education Series with dozens of participants.

To articulate our value to the fintech ecosystem and the Commonwealth, we expanded our marketing, PR and social media footprint in an effort to reach wider audiences and share messaging about our initiative. We ended up:

Increasing web and social media impact with more than 1,200 additional pageviews per month in 2022 than in 2021; growing social media following by 146% and increasing engagement by 190% YoY across LinkedIn and Twitter;

Becoming the Massachusetts fintech storyteller highlighting thought leadership through our success stories, DE&I spotlight series, and Boston Fintech Week series;

Adding several new members and reaching tens of thousands of citizens in the Commonwealth.

Looking Ahead to 2023

We must remain resilient amid shifting economic winds and new ways of doing business and will work to inspire and provide opportunities for the next generation of leaders, across our stakeholder groups, through our Mentorship Program, Fintech Bootcamps, Career Fairs and Angel Investor Education Series.

We seek to educate and deliver perspectives on important innovations and changes in fintech and financial services, sustainable finance, and financial inclusion, with our Fintech Forums and other events.

Mass Fintech Hub will expand programming by delivering exceptional events that attract more leaders, collaborators, and participants to the fintech ecosystem. This includes building our presence regionally, nationally, and globally to show how Massachusetts is becoming the #1 fintech destination.

We also expect to grow our membership across various stakeholder groups to strengthen our foundation in the Commonwealth and expand our presence and network, as well as with the incoming administration.

While 2023 will undoubtedly present challenges and uncertainty, we will be poised to come out stronger than ever. At Mass Fintech Hub, we continue to charge ahead and grow despite the economic headwinds and shifting business landscape. That will continue this year.

As 2022 has come to a close with a new administration, we want to extend a special thanks to Secretary Mike Kennealy who has been an able steward in this collaborative fintech initiative and instrumental to its success. He has brought steady guidance and strong leadership to our efforts. We look forward to continuing our progress with the incoming administration this year.