NEC Releases Report on Financial Services Industry
On January 31, 2017, The New England Council released a new study on the impact of New England’s financial services industry on jobs and economic growth at an event in downtown Boston. The report, entitled “The New England Financial Services Industry: Around the Corner and Around the World,” demonstrates the importance of this major sector to quality of life and employment in the region, identifying the total number of direct, indirect, and induced jobs in each of the six New England states, and broken out by sector – banking, asset management, and insurance. It was produced in collaboration with a number of New England Council members.
The report found that New England is home to 375,460 direct jobs in the financial services industry, which totals the 7th most of any industry in New England. The insurance sector contributed the largest share at 175,870, followed by the banking sector with 146,570 jobs and the asset management sector with 53,020 jobs. In addition, the industry also supported 247,050 indirect and 390,020 induced jobs, equaling a total contribution of 1,012,510 jobs, greater than 10% of total regional employment. Furthermore, the report finds that the financial services industry accounts for 15.0% of the New England economy’s GDP and 13.7% of total output, providing a large tax base for state and local government income, wage and property taxes.
In addition to employment, the report also details other ways that the financial services industry contributes to the region’s economic well-being, including through small business lending, retirement and other investment advice, and community involvement. Finally, the report highlights New England’s leadership in the emerging area of financial technology, or “FinTech,” with examples of some of the innovative FinTech initiatives across the region.
The report was released at an event hosted by WilmerHale in downtown Boston. Following a presentation on the report’s finding, a panel of industry representatives discussed the study and offered perspectives from their individual sectors. The panelists included NEC members Paul Gentile, President/CEO, Cooperative Credit Union Association, Inc.; Lenny Glynn, Managing Director of Policy, Putnam Investments; Kevin Malone, Market President for Greater Boston and Rhode Island, TD Bank; and Susan Winkler, Executive Director, Connecticut Insurance and Financial Services (CT IFS). The panel was moderated by NEC board member John Stadtler, Partner at PwC.