With the guidance of its regulatory sandbox , West Virginia is poised to be an industry leader in fintech by allowing firms that would normally require state licensure to partner with financial institutions and test their products or services for a limited period .
“ The fintech industry presents a rare opportunity for the Mountain State to not just keep up with the progress of the states around us but to exceed them and become a real industrial leader of the future ,” says Max Gottlieb , attorney at Hissam Forman Donovan Ritchie PLLC . “ The fintech space is growing rapidly , and West Virginia can be part of that burgeoning growth and become a regional , if not national , standard-bearer in the industry . If we can do that , West Virginia can be solidly in the driver ’ s seat for economic opportunities in the 21st century .”
By lowering the initial regulatory cost for a company , a startup working through the regulatory sandbox can speed up its development and testing process , according to Stagger .
“ As an attraction manager for the West Virginia Department of Economic Development , one of my areas of focus is on the tech industry . As I began working in this area , I quickly realized how big the fintech industry is growing ,” Stagger says . “ A fintech regulatory sandbox allows companies to bring their fintech products to West Virginia and test them for 24 months . At the end of the period , they graduate from the sandbox . If they are successful , they can stay here and operate , or , if their model fails , the entrepreneur can exit without losing as much investment .”
In response to fintech ' s influence and everyday use as a payment option for the average consumer , financial institutions are investing in fintech and its research and development . Similar partnerships are forming in West Virginia through initiatives like Vantage Ventures , a West Virginia University ( WVU ) program administered by the West Virginia Division of Financial Institutions , which officially launched in October 2019 in partnership with John Chambers and the
college of business and economics , which shares his name .
Sarah Biller , West Virginia native and executive director of Vantage Ventures , says fintech is a critical driver of the creation and adoption of innovations in technology and important to building a more inclusive and financially secure future for individuals and small businesses .
“ Fintech is a very broad category and touches all parts of an individual ’ s personal and professional lives . Foremost , it provides the state the opportunity to responsibly adopt emerging technologies that increase the likelihood of financial security and wellness for all West Virginians ,” Biller says .
WVU is working to promote the Mountain State ’ s vision to grow into an innovation economy by giving entrepreneurs a mechanism to scale ideas to market through the Vantage Ventures initiative .
“ We are uniquely positioned to connect fintech entrepreneurs , the creator economy and venture capitalists to attract the funding needed to support our makers as well as modernize the way they are paid and manage their cash flow . There has never been a better time to sell a unique item to the global markets from West Virginia ,” Biller says . “ The West Virginia fintech sandbox provides entrepreneurs an environment to collaborate with our regulators , community banks , small businesses and other institutions to build products and services geared to how we live , educate , work and play in West Virginia . It is an exciting opportunity for fintech entrepreneurs to innovate for people and businesses operating outside of big cities .”
According to Stagger , it takes support from resources and partnerships with venture capitalist firms and makerspaces to help any entrepreneur , especially a fintech entrepreneur , become successful .
“ These partnerships not only create quality , high-tech jobs for residents , but they bring more technology-based industry to the state and thereby improve the economy ,” Stagger says . “ I believe West Virginia ’ s fintech future is
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