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Insights and Expertise

Why banking and fintech

companies should be located near

research and innovation resources

By Jessica Del Vecchio This pipeline, from idea to innovation to market, has made
Office of Economic Development, City of Boca Raton research parks, local incubators and innovation accelera-
tor programs into engines of transformation across not
n the race to advance financial services and digi- only financial services but also adjoining fields like ad-
tal banking, location is more than a pin on a map; vanced engineering, agri-tech and food sciences, where
it's a position within an ecosystem. For decades, trust, compliance and consumer security remains a core
I executives making expansion or relocation deci- focus.
sions considered factors like tax incentives, regulatory
environments and access to target markets. Those drivers The result is an ecosystem where breakthroughs don't re-
still matter, but for banks, credit unions and fintech firms, main siloed. Banks and fintech companies can ally with
the new competitive edge lies elsewhere: in proximity to chemists, engineers and data scientists, creating cross-
innovation. sector innovations that move faster and farther.
The human capital advantage
Increasingly, the companies showing the greatest growth
trajectories are those nestled beside independent research If infrastructure is the skeleton of innovation hubs, tal-
parks and innovation districts. These hubs have quietly ent is the heartbeat. For financial institutions and fintech
become the lifeblood of emerging fintech startups and startups, the battle for expertise is often as challenging
financial technology leaders, fueling accelerated technol- as developing a new product itself. These innovation re-
ogy adoption, supplying vital talent and sparking region- sources offer a solution by turning education into a direct
al economic growth at a measurable scale. For financial talent pipeline.
institutions and digital-first innovators seeking to thrive
rather than simply survive, aligning with a research park, By aligning with nearby talent resources, research and
local incubators and innovation accelerator programs is innovation hubs connect companies to a steady flow of
becoming a strategic necessity. interns, graduate researchers and recent alumni seeking

Accelerated product and sector growth pathways into industry careers. Banks and fintech em-
ployers not only reduce the high cost of recruiting but also
The pace of financial technology innovation has never gain access to workers whose training has been shaped by
been faster, but bringing new products to market remains real-world, hands-on projects.
complex, costly and slow for organizations working in iso-
lation. Research and innovation hubs address this friction The benefit is twofold: students graduate with stronger
by creating environments where private enterprise, aca- applied skills, while companies integrate fresh ideas into
demic researchers and specialized facilities converge. their operations.

On the most practical level, companies gain access to Many of today's successful research parks within their re-
shared infrastructure such as universities with finance spective regions illustrate this dynamic. Placement of in-
and computer science programs, cybersecurity labs, fin- terns often translates into stronger professional networks,
tech incubators and digital transaction testing centers— faster onboarding and talent retention that strengthens the
without shouldering the full financial burden of building regional workforce. For companies dealing with national
them. Just as important, co-locating near universities or shortages of skilled cybersecurity experts, compliance of-
business schools and innovation centers opens up path- ficers and fintech developers, this localized pipeline can
ways to meaningful partnerships. tip the scales of a more competitive region.
A catalytic economic engine
For example, a fintech startup developing blockchain-
based payment platforms might collaborate with a univer- While the individual benefits for banks and fintech firms
sity on early-stage research, while simultaneously engag- are clear, the regional ripple effects are equally profound.
ing with banks or payment networks on pilot programs. Studies repeatedly show that research parks function as
Theoretical discoveries that might otherwise languish in catalytic engines for local economies, generating not only
academic journals can move quickly toward commercial- new jobs but also long-term investments and tax revenues
ization. that extend beyond their borders.
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