Financial Services
Industry Overview
Colorado is an ideal state for companies in the financial services industry. Colorado companies provide a wide variety of financial products and services, including banking and finance, investments and insurance.
Denver is widely considered the major financial center between Los Angeles and Chicago due to the variety and breadth of its financial services industry. Downtown Denver's financial district along Seventeenth Street is known as the "Wall Street of the West," with more than 9,000 companies and 90,100 employees spread throughout the seven-county Metro Denver region. Statewide, total financial services-related employment in Colorado was more than 105,000 workers in 2005.
Financial services in Colorado include banking and finance, investments, and insurance.
- Banking and finance companies are transaction-oriented and include both depository and non-depository institutions like commercial banks, credit card companies and credit agencies, mortgage brokers and other lenders.
- Investment companies are involved in securities and commodities trade, real estate investment trusts, holding companies and portfolio management.
- Insurance carriers and brokers provide all types of insurance, including life, accident, health, casualty, title and surety insurance, in addition to pension, health and welfare funds.
Colorado supports a vigorous and growing financial services sector with its low business costs, impressive inward migratory population trends, and incomes that are growing faster than the national average. Colorado's financial services industries are very entrepreneurial, as well, and investors nationwide are taking notice. In Metro Denver, for example, financial services companies attracted $17 million in venture capital in the first half of 2006, and $72 million since 2000.
In addition to a solid and diverse industry base, financial services companies in Colorado are supported by a variety of infrastructure and trade associations. See below for links to trade associations and other relevant groups.
Financial Services Facts
Banking and Finance: About 71% of Colorado's banking and finance industry is located in Metro Denver. Metro Denver ranks sixth out of the 50 largest metro areas in banking and finance employment concentration in 2006. With direct employment in banking and finance of about 41,000 workers, Metro Denver also ranks 11th in absolute employment compared to the 50 largest metro areas.
- The number of banking and finance companies has grown 24.7% from 2001 to 2006 compared to 12.9% growth nationally.
Investments: About 75% of Colorado's investments industry is located in Metro Denver. Metro Denver ranks sixth out of the 50 largest metro areas in investments employment concentration in 2006. In terms of absolute employment in the investments sub-sector, Metro Denver ranks eighth compared to the 50 largest metro areas.
- Investment companies employ about 1.9% of Metro Denver's total employment base, compared to a 0.9% concentration nationally.
- The investments industry sector directly employs 22,855 people in Metro Denver.
- Investments employment has increased 4.8% between 2001 and 2006 compared to a 5.9% decline nationally.
Insurance: About 76% of Colorado's insurance industry is located in Metro Denver. Metro Denver ranks 15th out of the 50 largest metro areas in insurance employment concentration in 2006. With direct employment in the insurance sub-sector of nearly 26,300 workers, Metro Denver ranks 13th in absolute employment compared to the 50 largest metro areas.
- The number of insurance companies has decreased 2.7% from 2001 to 2006 compared to a 3.6% decline nationally.
Reasons to locate your financial services business in Colorado
- Access to a large, highly-qualified workforce.
- Metro Denver has a stronger concentration of financial services occupations than the U.S., ranging from financial managers and specialists to financial clerks. About 9.8% of Metro Denver's labor force is employed in financial services-related occupations compared to the U.S. average of 7.1%. (American Community Survey, 2004)
- About 2.6% of the 50,400 certified financial planner certificates in the U.S. are held in the state of Colorado, even though Colorado's population represents just 1.6% of the total U.S. population. (Certified Financial Planner Board of Standards, Inc. and American Community Survey, 2004)
- More than 252,500 licenses/registrations for certified public accountants (CPAs), insurance agents/representatives, investment advisors/representatives, and securities broker/dealer representatives are active in the state of Colorado. (Colorado Department of Regulatory Agencies; Certified Financial Planner Board of Standards, Inc.)
- With 35.5% of the adult population having completed a bachelor's degree or higher, Colorado ranks as the second most educated state in the country. (American Community Survey, 2005)
- The Daniels College of Business at the University of Denver ranked eighth in the latest Wall Street Journal/Harris Interactive business school rankings for schools with regionally-based recruiters. Daniels College of Business ranked fourth in the world for producing students with high ethical standards. Recruiters also ranked the business school sixth in the nation for academic excellence in accountancy. Financial services recruiters ranked Daniels College of Business seventh in the nation. (University of Denver)
- Colorado's basic educational skills level for proficiency in math is the 17th highest in the nation. (Corporation for Enterprise Development, 2006)