Invest in success: 3 reasons why financial services and insurance companies thrive in Greater Phoenix
Published: 07/26/2019
Updated: 07/18/2023
Greater Phoenix is home to a dynamic and growing finance and insurance cluster. In fact, it is the sixth largest in the nation. Many of the leading financial services and insurance firms employ hundreds to thousands of individuals in our region including American Express, Charles Schwab, State Farm Insurance, Aetna, and more.
Here are the top three reasons why financial services and insurance companies, like the ones mentioned above, are doing so well right here in Greater Phoenix.
1. Strong industry ecosystem with robust human capital
Greater Phoenix has become a hub to test and produce disruptive technology in the finance and insurance space.
In March of 2018, Governor Doug Ducey signed House Bill 2434 into law making Arizona the first state in the nation to enact a groundbreaking regulatory FinTech “Sandbox.” In Arizona’s sandbox, startups, entrepreneurs and established companies can launch products on a limited, temporary scale to consumers. These innovative products, services, business models and delivery mechanisms can then be tested in the real market without incurring regulatory costs and burdens that would otherwise be imposed. This means that our region is able to support local startups and recent expansions like Grain Technology, Omni Mobile, Sweetbridge, Align Income Share Funding and ENIAN who have been accepted into the program.
Learn more about the finance & insurance ecosystem
2. Educated talent pipeline
Greater Phoenix has become one of the top cities for finance and insurance businesses, pulling ahead of popular cities like Dallas, Salt Lake City and Charlotte in total degree completions for finance and insurance-related programs. Many recent locates in these industries hired from our region’s quality workforce pipeline and more than 6,000 students earning degrees in computer science, mathematics and business-related areas come from Arizona universities.
Here are a few highlights of the region’s universities:
- U.S. News & World Report has named Arizona State University the #1 Most Innovative School in 2016, 2017, 2018 and 2019 as well as boasting #5 in Best-Qualified Graduates by Wall Street Journal.
- The University of Arizona was named the #1 Public Management Information System program by U.S. News & World Report.
- Grand Canyon University offers over 200 academic programs including a variety of financial degrees from a Master of Science in Accounting to a Master of Business Administration with an emphasis in Finance.
- Thunderbird School of Global Management’s specialized Master of Global Management degree earned the #1 Master in Management ranking in the Times Higher Education/Wall Street Journal 2019 Business Schools Report.
3. Competitive operating costs and tax environment
Greater Phoenix thrives when innovative businesses start and relocate here. They are greeted with a tax and mandated benefits environment unmatched by many major markets including Salt Lake City and Charlotte. Compared to these two cities, Greater Phoenix has the lowest annual operating cost for finance and insurance operations. Greater Phoenix also offers operating costs of up to 42% less than California.
Check out the in-depth report here and find out more about how Greater Phoenix is a top market in the nation to relocate or expand your finance and insurance business operations.