Finance and Insurance
A Growing Footprint for Financial Technology
The Finance and Insurance sector includes the execution of financial transactions such as creation, liquidation, or change of ownership of financial assets; and financial technology (Fintech,) whose scope has been expanded to include consumer services such as education, retail banking, fundraising and non-profit, and investment management.
Colorado Springs is ranked among the United States’ top 50 fintech hubs bolstering Finance and Insurance activity and aligning itself as a growing investment destination for sector companies. The city’s proximity to Denver allows room for multinationals like Western Union and Charles Schwab rooted in the State’s capital, to extend their satellite operations to Colorado Springs. As one of the fastest-growing tech hubs in the nation, Colorado Springs creates a platform for large corporations and startups to innovate and take advantage of the city’s workforce with strengths in both financial services and information technology.
A Growth-Centered Business Economy
The Finance and insurance industry in Colorado Springs employs over 130,000 people and contributed $1.3 billion to the city’s economy in 2021. The industry holds a 3.4% share of the total GDP in the nation, and a 3.2% share of the city’s economy. In the last 10 years, the region’s Finance and Insurance Industry has been on a positive trajectory growing at an annual average of 11.2% locally and 6.7% at the national level.
Compared to Colorado and U.S. average, Colorado Springs has lower wages with a median hourly wage of $41.40. The national and state hourly average wages stand at $51.15 and $49.57 for the former and latter respectively.
Colorado Springs’ diverse and strong economy enables companies in the Finance and Insurance industry to thrive. The city has five military bases and over 200 defense and aerospace companies which support the Government and the commercial sector. The city has witnessed major business expansions by companies like Entegris, Microchip, and Zivaro, bringing in billions in capital investments and creating thousands of jobs to the city’s economy. In 2023, Microchip announced an $880 million expansion which the city of Colorado Springs projected would create 400 new high-paying jobs and about $1.4 billion in capital investment over the next 10 years. In 2022 and part of 2023, the Colorado Springs Chamber & EDC had closed on 13 economic development projects resulting in $1.6 billion in capital investment and over 2,000 well-paying jobs with an average annual wage of $113,612.
Efficient and Reliable Infrastructure
The advent of COVID disrupted workplace operations, with companies resorting to telecommuting to keep afloat. This trend seems to have stayed with employees in the Finance and insurance sector whereby a portion of these positions are still remote.
Colorado Springs’ well-developed infrastructure, including its robust fiber-optic network, supports businesses across the city, giving them access to high-speed internet for business operations and remote work. The Colorado Springs Airport’s direct connection to major cities across the nation and the ability to access the airport within one hour provides a great opportunity for executives to easily commute to the city and transact business. The Denver International Airport has opened the region to major markets across the globe.
Colorado is home to major foreign banking and investment operations including Zurich North America (Swiss), one of Europe’s largest insurance-based financial services firm, providing access to private banking and asset management for investors.
Top City for Talent Growth
Colorado Springs is a growing financial hub with an unmatched talent pool and exceptional infrastructure that supports innovation in the Finance and Insurance sector. Colorado Springs was named a top city for tech talent growth by CBRE’s 2021 report, which ranks 75 U.S. and Canadian markets according to their ability to attract and grow tech talent.
The city has also been named by numerous media reports as the best place to live and do business, Colorado Springs continues to be the preferred city for talent to relocate and launch their careers. Zillow ranked Colorado Springs as the best place for college graduates to live and work. The military transitioning from the workforce as well as military spouses also add to the diverse and highly skilled talent pipeline that the city enjoys.
Colorado Springs boasts a thriving Finance and Insurance industry represented by strong industry clusters, which are projected to grow exponentially in the next five years. The Finance and Insurance subsector employs 12,795 people with an average wage of $90,429. These jobs are expected to grow by 6.3% in the next five years. The industry’s non-depository Credit Intermediation is the highest paying occupation at $125,013 and employs 1,445 workers. Other Financial Investment Activities including Insurance Carriers, Lessors of Nonfinancial Intangible Assets and Computer Systems Design Services have exhibited impressive performance and are projected to grow by 10.4% in the next five years.