Atlanta and parts of Georgia are currently the epicenter of a growing financial services industry often referred to as Financial Technologies or FinTech. This sector is made up of companies that develop the products and provide services supporting the financial service industry’s technology needs. These FinTech companies and their products and services form the core of the global economic payment-processing infrastructure.
The Payment Processing Industry, based largely in Georgia, is dynamic and growing supporting the more than $4.4 Trillion in credit card transactions that occurred in the U.S. last year alone. The global Financial Services Industry continues to grow by seven to nine percent even in the middle of a recession with virtually all other sectors declining. This growth is explained largely by the dramatic and continued migration from paper to electronic payment, increasing profits, driving efficiency, mitigating risk, focusing market intelligence and increasing access to markets everywhere that is connected to the Internet.
FinTech in Georgia
More than 70 percent of U.S. transactions go through Georgia, which was made possible in the past by the state’s progressive stance and positive business climate, attracting the largest processors. The industry matured and its needs are changing because of global financial services growth and competitor saturation. FinTech companies must continue to find new ways to expand their business and grow.
These companies need to improve infrastructure; develop new technologies for mining, manipulation and managing data; ensure a strong pipeline of skilled workers; and reinvent the industry’s complete value chain. Those companies able to meet these changing needs will ultimately retain global industry dominance.
The 2008 “crash” led to significant financial reform – namely the Dodd Frank law – which brought scrutiny and ongoing oversight from 19 federal agencies and departments. Privacy, cyber security, fee structures are top issues facing the industry, which has few advocates on Capitol Hill. The challenging regulatory environment is compounded by a lack of accurate information and visibility on the federal regulatory and legislative landscape.