WealthTech's rapid ascent shows no signs of stopping. In fact, the global WealthTech solutions market was valued at $4.8 billion in 2021 and is projected to balloon to $18.6 billion by 2031.

The convergence of technological innovations, heightened demand for personalization, and democratization of finance are propelling the growth of the sector. As the sector continues its rapid expansion, these key markets - New York, San Francisco, Chicago, and Boston - will remain focal points for innovation. Let's explore the reasons why WealthTech companies are magnetized to these four markets.

1. New York City

New York City, hailed as the global financial epicenter, hosts major banks, investment firms, and financial services companies, making it an ideal location for WealthTech companies.

Investor Network

New York City is home to over 200 angel investors and venture capitalists. In 2023, New York City saw a total investment of $4.7 billion across 339 deals in the Fintech sector – according to InnovateFinance.

Talent Pool

In 2023, New York City had 502,000 jobs in finance, 291,000 jobs in tech and media, and 799,000 jobs in professional and business sectors – cementing itself as a talent-rich destination.

Local Regulatory Expertise

The Department of Financial Services in New York offers valuable resources and support to WealthTech companies, providing critical guidance on regulatory compliance.

WealthTech firm in the market

A firm in New York City has created a single platform that connects independent financial advisors with leading alternative asset managers, revolutionizing wealth management.

2. San Francsico

San Francisco, known as the tech capital of the world and home to numerous tech giants, is a prime destination for WealthTech firms.

Investor Network

San Francisco is home to a large network of venture capitalist firms. Venture capitalists are instrumental in helping startups secure funding and navigate industry nuances.

Talent Pool

As of March 2024, San Francisco employed 133,900 people in the financial activities sector. As of 2022, the tech industry employed 407,810 people in San Fran.

Local Regulatory Bodies

The California Department of Financial Protection and Innovation (DFPI) provides regulatory guidance to local firms, helping them comply with financial regulations.

WealthTech firm in the market

A firm in San Francisco has created a customizable cloud-based platform to simplify the investment process for users with multiple assets.

3. Chicago

Chicago, a major financial hub housing top banks, investment firms, and financial exchanges, is an appealing destination for WealthTech firms.

Investor Network

Chicago's robust network of angel investors and extensive collection of venture capital firms make it an ideal environment for entrepreneurial growth and innovation.

Talent Pool

Chicago employs 315,800 people in the financial activities sector and 245,800 people in the tech sector – building a skilled talent pool crucial for WealthTech success.

Local Regulatory Expertise

The Illinois Department of Financial and Professional Regulation provides regulatory guidance, licensing support, and consumer protection measures for WealthTech firms.

WealthTech firm in the market

A firm in Chicago provides financial data for various purposes like investment planning, financial reporting, and robo-advice.

4. Boston

As the birthplace of the first modern mutual fund (Massachusetts Investor’s Trust) and a hub for numerous financial institutions, Boston offers an attractive environment for WealthTech companies to thrive.

Investor Network

Boston has a large concentration of venture capital firms.

Talent Pool

Boston currently employs 192,200 workers in the financial sector and 272,500 workers in the tech sector, positioning it as an emerging talent hub for WealthTech companies.

Local Regulatory Expertise

The Divisions of Banks is the chartering authority and primary regulator for financial service providers in Massachusetts. They can help WealthTech companies in the areas of regulatory compliance and cybersecurity measures, among other things.

WealthTech Firm in the Market

A  firm in Boston created a software for reporting, billing, and rebalancing of wealth management.

Key Takeaway

The WealthTech market is soaring, with major hubs like New York, San Francisco, Chicago, and Boston driving its growth thanks to their investor networks, talented workforce, and regulatory support.