Massachusetts boasts a thriving fintech ecosystem fueled by world-renowned universities, a deep and diverse talent pool, collaborative support structures, and a magnet for venture capital. We heard from several leading members of our network about why they consider the Bay State a prime location for  burgeoning fintechs.

1.     Incubators of incredible talent

“Massachusetts is rich in talent,” attests Suelin Chen, Founder and CEO of Cake.

Ari Fine Glantz, the Executive Director of the New England Venture Capital Association, attributes this to the state’s world-class academic institutions. These, he says, act as talent incubators, producing highly skilled individuals ready to contribute to the fintech industry. It’s not just in the classroom where the magic happens, either. Glantz says, “Access to internships, research collaborations, and a strong alumni network enhances talent attraction and retention.”

2.    Intellectual capital city

Meghan Sutherland, CEO of FiVerity, notes that Boston has a rich history as a financial center, and has long been a city of firsts in education, medicine, biopharma, safety, and inclusion – all sectors interconnected with fintech.

She says, “The city’s world-class education system, strong venture capital presence, and growing attraction for AI companies and engineers create unique opportunities for fintech innovation and financial services. This intellectual capital makes Boston appealing to early-stage startups and innovative doers.”

3.    Cross-pollination and collaboration

Cait Brumme, CEO of MassChallenge, says she’s witnessed firsthand how Boston's unique blend of top-tier universities, robust financial service industry, and entrepreneurial activity fosters unparalleled innovation in fintech and for our financial services sector.

“Our city serves as a dynamic hub where startups and established companies alike converge to pioneer groundbreaking solutions, driving the future of finance,” she says.

Jay Ash, President & CEO of the Massachusetts Competitive Partnership, agrees  that Massachusetts’ fintech thrives due to collaboration and shared resources with other leading industries. He notes that the Bay State is a trailblazer “in numerous areas of innovation and operation, and the opportunities for individuals and companies to cross-pollinate provides exponentially more resources for those in any one sector to draw upon.”

Carolyn Kirk, CEO of Massachusetts Technology Collaborative, argues that partnerships are a key ingredient behind many success stories here. She cites a recent Boston Business Journal article which covered Mass Fintech Hub’s recent CEO Innovation Forum and aptly highlighted the successful collaborations between traditional financial institutions (including small community banks) and small fintechs offering cutting-edge technology. This is a powerful example, she says, of “the spirit of innovation that exists here and why this is the place to build the next generation of banking tools.”

4.    A VC magnet

For Glantz, it’s not surprising that increasing numbers of venture capitalists are flocking to Massachusetts’ vibrant fintech ecosystem. He says, “The region's track record of innovation (Kensho, Circle, Toast, etc), access to talent (MIT, Babson, Northeastern, BU, etc), and collaborative community (Mass Fintech Hub, MassChallenge, etc) make it an attractive investment destination for venture capitalists looking to support and nurture fintech startups.”

5.    Strength in diversity

Laura Haas, Dean of the Manning College of Information and Computer Sciences at UMass Amherst, says academic institutions attract talent from all 50 states and the global community into the state. “By any measure – economic, racial, gender, country of origin – our campuses provide a diverse mixture of talent for industry to draw on,” she says.

Tanya Van Court, Founder and CEO of Goalsetter says, “The commitment that many stakeholders [in Massachusetts] have made to fintech means positive change, particularly with regards to advancing the goals of diversity, equity and inclusion.”

Scaling up over the long-term

Massachusetts isn’t just the place for strong beginnings: it’s also the ideal place for scaling up. As they mature and grow, fintechs will reap the benefits of a strong support system, says Glantz, citing a facilitative local government as well as access to capital, talent, and resources. He adds, “[Startups] can leverage existing partnerships, networks, and expertise to scale their operations and achieve long-term success.”

Kirk says that in the Bay State, “We never stop innovating and have the track record, academic institutions, and vibrant start-up culture that is looking to disrupt, innovate, and grow game-changing businesses.”

She believes its deep well of talent, coupled with a strong R&D culture will help companies to scale-up to meet the demands of customers and to keep innovating the product.

“The cross-over with our leading universities and with the talented finance leaders across our state, both the multinational firms and our community banks, will help your fintech grow in ways that’s not possible in other regions of the country,” she concludes.

Support every step of the way

As you can see, getting your fintech startup off the ground in Massachusetts is a no-brainer! At Mass Fintech Hub, we’ll be here to support you from the get-go, helping you grow both within the Commonwealth – and far beyond it.

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