Gardner Institute reports on economic impact of Utah’s fintech industry

Since the Great Recession of 2007-2009, the financial technology (fintech) industry has transformed the traditional financial services sector and introduced innovative business models globally. That’s the conclusion of a new report on the sector from the Kem C. Gardner Policy Institute at the University of Utah.

The report, “The Economic Impacts of Utah’s Fintech Industry,” shows that in 2023, Utah’s 67 fintech companies created nearly 8,000 jobs and produced more than $1 billion in total annual wages.

“In Utah, the fintech industry has grown and will continue to grow, thanks to the state’s youthful population and educated workforce, its large financial services sector, a concentration of industrial banks and other factors,” said Nate Lloyd, director of economic research at the Gardner Institute. “With continued industry growth and strong economic multipliers, Utah fintech companies will likely contribute to greater shares of Utah’s economy over time.”

Of Utah’s 67 fintech companies, about half of these companies are in software and technology-related industries, while the other half fall in the financial services sector.

The Gardner report found that fintech significantly impacts Utah’s employment, with each job in the industry generating an additional 2.8 jobs throughout the broader economy. While the industry employs about 7,800 individuals directly, it creates an additional 22,000 jobs in the Utah economy. Its $1 billion in wages lead to a total impact of $2.3 billion in wages across all industries and $2.6 billion in fintech industry output (industry sales) leads to $7.3 billion in output across all Utah industries.

Utah fintech companies are found primarily across six counties: Salt Lake, Utah, Weber, Cache, Davis and Washington. Salt Lake County is home to the most Utah fintech companies (67 percent), followed by Utah County (26 percent).

Each Utah fintech company is classified into one of six segments by their business model: lending, payments and infrastructure, internal financial operations and risk management, investments, customer interface, data security and monetization. Lending ranks largest among Utah fintech segments, accounting for 32 percent of total jobs and 29 percent of total wages in this industry.

The estimated annual wage at Utah’s fintech companies averages about $131,500 per employee, much higher than the average wage among all other industries in Utah ($65,260).

“Fintech is an important part of Utah’s economy,” said Ryan Christiansen, executive director of the University of Utah’s Stena Fintech Center. “We are thrilled to spotlight fintech’s positive impacts on jobs and wealth creation in Utah. This report signifies the start of significant thought leadership and robust research from the University of Utah around the emerging influence of financial technology in Utah and around the globe.”

The full report is accessible through the Gardner Institute website at gardner.utah.edu.