Fintech Gains Momentum (EDITORS NOTE)

Financial technology, known in entrepreneurial circles as “fintech,” is one of the hottest areas for investment right now.

Consider this: in the first six months of 2015, according to London consulting firm William Garrity Associates, nearly $32 billion was invested in the sector in the U.S. alone.

In other words, banks are no longer clashing with digital disruption. They are embracing it.

It’s a niche that isn’t going unnoticed at The Venture Center in Little Rock, which is hosting a 15-week program this summer called the VC FinTech Accelerator, whereby a group of 10 hand-picked startups — applications are being taken through March 31 — will each receive an initial $50,000 investment to accelerate their growth.

Lee Watson, the president and CEO of The Venture Center, says there are about 2,000 business accelerators in the U.S., but fewer than 10 of those are related to fintech.

Watson said the VC FinTech accelerator will further distinguish itself because of its partnership with FIS, a Fortune 500 company in Florida that is considered the global leader in financial services technology. The company traces its origins back to Arkansas in the 1960s as Systematics, and still employs more than 1,000 in west Little Rock.

That makes the value proposition for this program especially unique. If a startup is building a technology and wants to sell it to a bank, or to customers of a bank, there is no company with a better network to plug into than FIS.

And as central Arkansas builds its reputation as a hub for the fintech industry, it can only complement what entrepreneurial leaders are doing in our area in the logistics, retail and food sectors.

“As each of us build our ecosystem, focusing on the industry clusters we’re strong in, we’re able to pass the ball, share mentors and resources,” Watson concluded. “It will help our entire state come together to launch more successful entrepreneurs.”