< Previous76 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EB AN K I N G , F I NAN C E AN D I NS U R AN C EBanking on MinnesotaMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 77f America’s money managers had their own Monopoly board game, there’s no doubt which state would occupy Boardwalk and Park Place: Minnesota.The North Star State’s strong banking, finance and insurance industries employ 152,025 workers statewide and are 20 percent more concentrated in the state than in the U.S. overall. Total employment in these sectors is up 6 percent since 2010.There are more than 5,000 banks and financial services establishments and nearly 4,300 insurance establishments in Minnesota, according to EMSI. Among the largest banks headquartered or operating in Minnesota are U.S. Bancorp, Wells Fargo Bank Minnesota, TCF Financial, Bremer Financial Corp. and BMO Harris Bank.Even Rich Uncle Pennybags would be impressed with these assets: a world-class education system that produces a nation-leading 93.1 percent high school graduation rate; an overall quality of life that Forbes says is the best in the country; a business climate that CNBC ranks sixth best in the U.S.; the headquarters of 19 Fortune 500 companies — ranking Minnesota third per capita in the country; and a robust broadband infrastructure. Financial services institutions are only as secure as the broadband networks that serve them, and on that scorecard, Minnesota checks every box. The North Star State is heavily connected to fiber, cable, DSL From large firms to FinTech startups, the smart bet is on financial services talent in the North Star State.by R O N S TAR N ERIPhoto: Getty Images78 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D Eand wireless broadband networks, with the infrastructure in place to serve the needs of global financial institutions. Large national and international backbone providers serving Minnesota include AT&T, Verizon, Sprint, Level 3, XO Communications, Singapore Telecom, Zayo Bandwidth, CenturyLink, BCE Nexxia (Bell Canada), Windstream, Integra Telecom and Frontier Communications.Upstarts Changing the World of FinTechThis unique combination of resources is one reason why Minnesota has emerged as a hotspot for FinTech. Both established players and upstarts are developing new financial services technology solutions, and they’re using Minnesota as their platform. Every one of Minnesota’s five Fortune 500 financial services mainstays (UnitedHealthGroup, U.S. Bancorp, Ameriprise Financial, Thrivent Financial and Securian Financial Group) is investing heavily into FinTech, as is a growing cadre of startups.Other firms developing FinTech solutions include Apruve, Digital River, Tamarack Consulting, Total Expert, Wolters Kluwer, Sezzle and Upsie, among many others.Sezzle, based in Minneapolis, uses technology to allow online shoppers to buy goods from participating merchants and then pay for those items in four interest-free installments spaced two weeks apart.“Young people often have limited access to credit,” says Charlie Youakim, CEO and founder of Sezzle. “Our typical customer is between the ages of 18 and 35. Our system allows them to budget and extend their purchasing power.”Minnesota recently has seen the launch of approximately 60 new small businesses and startups in FinTech-related services. In addition, larger players like U.S. Bank, Wells Fargo and Deluxe Corp. are investing in FinTech solutions of their own.Sezzle started off small, but has grown quickly. They have 43 employees in their downtown office.In 2016, Sezzle raised a little over $1 million from investors with the help of the Angel Tax Credit program managed by the Minnesota Department of Employment and Economic Development (DEED). They’ve now raised $11 million in total and continue to grow rapidly.“In five years, I believe we’ll employ a few hundred people — and we may not have existed without this tax credit — or we might have located in California to begin with,” says Youakim. “(The tax credit) definitely has had an effect.”Likewise, FinTech startup Upsie is making headlines in Minneapolis with some innovative thinking of its own. Founded by former Bemidji State University basketball player Clarence Bethea, Upsie enables consumers to easily and affordably find, purchase and use their new product warranties. “We wanted consumers to be happy about protecting the things they love,” says Bethea. “We wanted to build a consumer’s solution, and not a retailer’s solution.” Upsie’s warranty prices are about 50 to 90 percent cheaper than the warranties sold at big-box stores. Mentors, VC Firms Lending a HandUpsie has been helped by Techstars, a global network that helps startups succeed through mentor-led accelerators and through its venture capital arm. Upsie beat out some 3,000 other startups to become one of just 10 companies selected to take part in the 2017 Techstars Retail Accelerator in partnership with Target Startups.Upsie now has eight employees who work out of offices near the University of Minnesota. Bethea says Minnesota is a good place for startups in the retail sector. “We’re fortunate to have Target and Best Buy, two iconic brands that Minnesota’s banking, finance and insurance industries employ 152,025 workers statewide and are 20 percent more concentrated in the state than in the U.S. overall.Source: Minnesota DEEDMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 79understand the retail space,” he says. “We have the local talent, great minds and visionaries here.”They may soon have more company too. The state of Minnesota offers incentives and assistance to help entrepreneurs get their new ventures up and running — such as Minnesota Innovation Loans for Entrepreneurs (MILE). Information technology received 48 percent of the $495 million Minnesota received in venture capital investments in 2017, according to the PwC/CB Insights MoneyTree Report.Minnesota ranks first in five-year business survival, according to the Bureau of Labor Statistics. Minnesota’s Small Business Administration office ranks 10th in its volume of SBA-backed loans (1,908). The office also ranks 16th with $681.2 million in approved loans. “We’re fortunate to have Target and Best Buy, two iconic brands that understand the retail space. We have the local talent, great minds and visionaries here.”– Clarence Bethea, Founder & CEO, Upsie80 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EQ U A LI T Y O F LIF Eby S AVAN NAH K I N GMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 81Why are Minnesotans so gosh-darned happy?I MINN ESOTA HA PPYt only stands to reason that living in a state with the highest quality of life in the country would have a positive effect on the people who call it home. That may be why Minnesota ranks as the happiest and least stressed state in the nation. One thing is for sure, when it comes to quality of life, Minnesota is at or near the top of most lists. For instance, Forbes ranked Minnesota fi rst in Quality of Life in 2017. WalletHub named Minnesota the Happiest — and Least Stressed — state in the country in 2017. The state earned the No. 2 and No. 3 rankings for quality of life from U.S. News & World Report and CNBC in 2018. What’s more, Forbes ranked the Twin Cities fi rst among the Top 20 Healthiest Cities (three years in a row). Niche.com gave Minneapolis an A+ overall and an A- for outdoor activities, diversity, nightlife, health and fi tness and commuting. And the Minneapolis Creative Vitality Index ranked the city No. 6 in its ranking of the 35 largest metro regions based on arts, culture and employment in creative occupations. While these accolades certainly speak for themselves, residents are privy to a low cost of living regardless of where in the state they’re located. In the Twin Cities of Minneapolis and St. Paul, housing is much lower than many other major metro areas, with the median home value of $280,200, according to the National Association of Realtors. From urban to suburban living, the area offers a variety of residential neighborhoods with plenty of walkable and bikeable places to explore — like any of the 180 parks in Minneapolis. (Minneapolis earned another honor when its park system was named the No. 1 system in Photo courtesy of Meet Minneapolis82 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EAmerica by the Trust for Public Land for the last five years.) Even those who live outside the Twin Cities metro region in some of the smaller cities around the state like Rochester, Duluth, St. Cloud or Moorhead and in more rural parts of the state enjoy a top-notch lifestyle. And of course, who could forget the more than 10,000 lakes that earned the state its nickname, or the clean air, forests, hiking and biking trails and all-around natural beauty of the state? With the northern state’s distinct seasons, there’s always something to do. In the summer, camping, hiking, hunting and fishing are popular pastimes, while the winter brings an entirely new experience to activities like snowmobiling, snowshoeing, ice fishing and more. People from the North Star State tend to be, well, nice. Minnesotans ranked second in the country for volunteering, according to the Corporation for National and Community Service. The group reported that 35.4 percent of residents in Minnesota volunteered in 2015 — second only to Utah. And with its culture of kindness, WalletHub named it the 2nd Best State to Raise a Family in 2018. The famed Midwestern work ethic is alive and well and a driving force behind the state’s excellent schools. The state has been on a mission to create “The World’s Best Workforce” since 2013 when it enacted a plan to increase student performance and help fill future jobs. The state also ranks first in the percentage of the population with high school diplomas. Having a great quality of life makes it easier to keep employees. Once people move here, they never want to leave. Bicyclists ride around Bde Maka Ska (formerly Lake Calhoun).Photo by Shay La’VeeMI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D E 83‘Play Ball’Means More in MinnesotaMI NNE S O T A S P O R T Sby R O N S TAR N ERhether it’s the sound of the crack of the bat or the crunch of a defensive tackle taking down a quarterback, Minnesota sports fans fi nd a plethora of teams offering music to their ears.WPhotos courtesy of Meet MinneapolisIf you’re a fan for all seasons, Minnesota is especially accommodating. Summertime brings America’s favorite pastime, baseball, into play at Target Field, the home ballpark of the Minnesota Twins in Minneapolis. The Twins captured World Series titles in 1987 and 1991 and have won the American League Central Division title six times since 2002. Fans of hardball also enjoy a summer afternoon or evening cheering on the St. Paul Saints on the diamond of CHS Field in St. Paul. The independent pro baseball team captured four Northern League Championships between 1993 and 2004.Autumn in Minnesota means crisp cool air, fall leaves and American football, led by the Minnesota Vikings of the National Football League and the University of Minnesota Golden Gophers of the Big Ten Conference. The Vikings, who play at the spectacular U.S. Bank Stadium in Minneapolis, have won one NFL championship and four conference championships in their 58-year-history, along with an astounding 20 division championships. The Gophers, who play at gleaming TCF Bank Stadium in Minneapolis, have captured seven national college football championships to go along with 18 Big Ten titles.Winter means hockey and basketball, and fans of both sports have plenty of reasons to cheer. The Minnesota Wild skates on the ice of the National Hockey League in the Xcel Energy Center in St. Paul, while the Minnesota Timberwolves compete in NBA hoops at Target Center in Minneapolis. The Target Field84 MI NNE SO T A E C O N O MI C D E V E L O P ME N T G U I D EMinnesota Lynx also compete at the Target Center and have captured four WNBA championships.Springtime brings a thawing of winter temperatures along with a heavy dose of the state’s newest pro sports franchise, Minnesota United FC of Major League Soccer. While United is competing in just its second MLS season, the club captured North American Soccer League titles in 2011 and 2014. United will move into the new Allianz Field in St. Paul in spring 2019.Beyond the major professional sports teams, fans in Minnesota can take in everything from bandy, golf and disc golf competitions to lacrosse, NASCAR racing and Ultimate Frisbee. Medtronic Plaza, US Bank StadiumNext >