State continues growth as worldwide finance hub
Colorado is a growing global financial center with an innovative ecosystem and unmatched talent pool.
Colorado’s Front Range is the major financial center between Los Angeles and Chicago. Denver is home to a branch of the Federal Reserve Bank and is the location of one of only six U.S. Mints. As the “Wall Street of the West,” Colorado’s Front Range is one of the few areas outside of the Northeast with a substantial financial services industry involved in a wide range of activities, including banking and finance, investments and insurance.
Companies in the financial services industry employed more than 226,800 workers in 2014, representing 6.6 percent of total employment in the state. Roughly two-thirds of financial services employment is located in Metro Denver. Total payroll for the financial services industry in Colorado reached $16 billion in 2014, or an average wage of $70,350.
About 50 percent of the employees in the financial services industry work in the investments industry providing securities and commodities trade, real estate investment trusts and portfolio management. Another 27 percent are employed in the insurance industry, which comprises insurance carriers and brokerages. The remaining 23 percent work in the banking and finance industry providing commercial banking, credit union functions, lending, credit and mortgage services.
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Financial services companies are attracted to Colorado because of its growing population base and a competitive business environment that attracts several well-known and highly ranked companies. Fourteen companies headquartered in Colorado were included on the Forbes’ 2014 Global 2000 list, nine companies were included on the 2014 Fortune 500 list with revenues totaling more than $93.6 billion, and 14 were named among Inc. 500’s fastest-growing private companies.
A variety of trade associations and service firms support the state’s diverse financial services industry base. The Colorado Bankers Association is a key industry partner (www.coloradobankers.org) representing all Colorado banks and provides government relations, community relations, educational and training services, and bank insurance. The Colorado Association of Mortgage Professionals (www.coamp.org) represents Colorado’s financing professionals specializing in origination of residential and commercial mortgages. The Metro Denver Economic Development Corporation formed the Financial Advisory Coalition in 2014, which is an advocacy group for investment and wealth management companies.
The state’s growing financial services companies and entrepreneurial business environment are propelling forward with significant investment activity. According to PricewaterhouseCoopers’ MoneyTree Report, Colorado companies in just the financial services industry attracted eight deals totaling $20.8 million in venture capital over the past five years. Colorado ranked ninth in 2014 in total venture capital placed in the state, with $793.1 million invested in 86 deals.
A number of associations and organizations support entrepreneurship and venture capital financing in Colorado. The Rocky Mountain Venture Capital Association (www.rockymountainvca.com) represents entrepreneurs, venture capitalists and service providers in the Rocky Mountain Region. The Rockies Venture Club (www.rockiesventureclub.org) is a nonprofit organization that encourages entrepreneurship in the region by connecting entrepreneurs, service professionals, investors and venture capitalists. The Rocky Mountain MicroFinance Institute serves the needs of community entrepreneurs to foster growth within Denver communities.
The state’s central location and reputation as a global commercial gateway gives financial services companies a competitive edge. Colorado is a prime financial center in the U.S., with support from a highly educated workforce, high concentration of corporate talent, and outstanding quality of life.
SOURCES: Development Research Partners, www.developmentresearch.net • Economic Modeling Specialists International, 2015 • Forbes. Global 2000 2014. www.forbes.com/global2000/list • Fortune 500 2014. https://fortune.com/fortune500 • Inc. 500. Fastest Growing Companies 2014. www.inc.com/inc5000/index.html • PricewaterhouseCoopers, MoneyTree Report, 2014. www.pwcmoneytree.com
