EDCUTAH INDUSTRY PROFILE 2017 FINTECH IN UTAH

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1 EDCUTH INDUSTRY PROFILE 07 FINTECH IN UTH

FINTECH C O M P N I E S MJOR UNIVERSITIES ND COLLEGES Utah State University Weber State University University of Utah Westminster College Salt Lake Community College Utah Valley University 7 righam

hubs from Fidelity, Wells Fargo, and others, Salt Lake City has earned its position as the Wall Street of the West.

2 FINTECH C O M P N I E S MJOR UNIVERSITIES ND COLLEGES Utah State University Weber State University University of Utah Westminster College Salt Lake Community College Utah Valley University 7 righam Young Snow College Esurance Southern Utah University CrowdEngine Dixie State University University LOGN OGDE N SLT LKE CITY s the th largest global location for Goldman Sachs, and with additional hubs from Fidelity, Wells Fargo, and others, Salt Lake City has earned its position as the Wall Street of the West. Utah has industry expertise in both the tech sector and financial services, making it an ideal location for any FinTech company. Utah also has incredible access to capital, with Provo, UT ranking # nationally in dollar-per-deal averages, and Salt Lake City, UT ranking #. est State for usiness Forbes magazine has recognized Utah as The est State for usiness & Careers six of the past seven years. E D C U T H F I N T E C H P R O F I L E Updated Feb. 07 Trained Workforce Utah has high employee concentrations of software developers, web developers, financial analysts and many other FinTech-related occupations. Utah is recognized nationally as an established tech hub and a burgeoning finance market. These two industry clusters employ more than,000 people a % growth during the last five years. E D C U T H. O R G ST. GE ORGE Dell EMC Galileo Processing Pluralsight Electronic rts 7 Control incontact Instructure LNDESK Microsoft Overstock SanDisk (formerly Fusion-io) Simple Snap! SoFi Chargeback dvancedmd E-Trade HireVue HealthEquity Workday Lendio 7 Jet.com DivvyPay Health Catalyst 7 efilecabinet ackcountry MX (formerly MoneyDesktop) 0 eay EMC Oracle Thumbtack Xerox Skullcandy Domo 7 EMC dobe IM Flash Technologies C ProPay Womply merican Express Deloitte & Touche Discover Products Edward Jones Ernst & Young D 0 MaritzCX (formerly llegiance Software) Fidelity Investments Microsoft Oracle 7 GE Capital Goldman Sachs Workfront (formerly ttask) Xactware JP Morgan Chase ank luehost SecurityMetrics 7 ncestry DHI Computing Service Entrata (formerly Property Solutions Int l.) There are a wealth of FinTech education resources in Utah, with major institutions offering programs related to information technology and finance. Scalar nalytics In 07, the Tax Foundation ranked Utah s Total Tax Climate as the th best in the nation. Since 0, Utah has eliminated or modified nearly 00 business regulations to ease the burdens placed on businesses. Fiserv From 0-, Utah s post-performance tax incentives facilitated nearly,000 new jobs and more than $. in capital investment. TTM Technologies FINNCE C O M P N I E S 7 E Industry Utah is proud to be home to companies like SoFi, MX, Esurance, HealthEquity, Womply, and many others. Utah is an emerging global hub for innovative FinTech companies, with established complementary industries in software development and financial services. Progrexion 0 PROVO Inovar Finicity 7 D Campbell Scientiﬁc PayPal C C The Perfect Place for and Technology to Play Together C I T C O M P N I E S Keyank Leavitt Group Merrill Lynch Morgan Stanley PricewaterhouseCoopers Micro Focus (formerly Novell) E 0 InsideSales.com U.S. ank Overstock US ank Qualtrics 7 Wells Fargo ank Jive Zions ancorporation Exeter 0 Progressive Leasing

Major FinTech Employers COMPNY EMPLOYEES* DESCRIPTION Recent nnouncements Chargeback 0- map # CrowdEngine <0 map # DivvyPay <0 map # E-Trade 0- map # efilecabinet 0- map #7 Esurance 0- map # Finicity

Simple 0- map # 0- map # Chargeback develops software and tools to help merchants prevent and manage chargeback fraud, providing fraud monitoring, responses, and alerts.

Divvy is the first free, fully-automated, proactive spending management platform, providing instant visibility and control over business spending and expenses.

3 Major FinTech Employers COMPNY EMPLOYEES* DESCRIPTION Recent nnouncements Chargeback 0- map # CrowdEngine <0 map # DivvyPay <0 map # E-Trade 0- map # efilecabinet 0- map #7 Esurance 0- map # Finicity 0- map # Fiserv 0- map # Galileo Processing 0- map # HeathEquity 00- map # Lendio 0- map # MX (formerly MoneyDesktop) 0- map # PayPal 0- map # Progrexion 00- map #7 ProPay 0- map # Scalar nalytics Simple 0- map # 0- map # Chargeback develops software and tools to help merchants prevent and manage chargeback fraud, providing fraud monitoring, responses, and alerts. CrowdEngine is a leading crowdfunding platform with a focus on compliance and launching quickly, having developed the CrowdEngine Compliance Engine software. Divvy is the first free, fully-automated, proactive spending management platform, providing instant visibility and control over business spending and expenses. E-Trade is a pioneer in the online brokerage industry and provides digital platforms for online stock broking and retail banking. efilecabinet develops full-fledged electronic document management software for capturing, managing, and protecting data for organizations. Esurance is a tech driven, multi-line insurance company backed by llstate, offering vehicle and property coverage to consumers. Finicity is an innovator in personal financial management and develops software for financial data aggregation for optimized data access and application. Fiserv provides technology based innovations for payments, processing services, risk and compliance, and customer and channel management. Galileo Processing develops software for payment processing, authorization, full service PI, and financial analytics and reporting. HealthEquity is a leading health care account management company, specializing in health plan integration and online payment portals. Lendio provides a technology platform to compare business loans, rates, and terms, allowing businesses to gain the capital they need quickly and efficiently. MX provides digital banking providers and financial institutions with software for data-driven money management, financial data PI, analytics, and financial marketing. PayPal is an industry leader and innovator of online payments, mobile commerce, money transfers, payment processing, and e-commerce. Progrexion is a leading provider of credit report repair services, using technology to help consumers understand, verify, and correct inaccuracies with creditors and bureaus. ProPay is a trusted leader in simple, secure, and affordable payment processing technology for entrepreneurs and small businesses. Scalar nalytics is a leading provider of valuation services for taxes, financial reporting, and transaction advisory purposes. Simple is a technology based personal banking company that uses behavioral economics to help its customers spend smarter and save more. Womply to Join Silicon Slopes (0) Womply will open a Utah office, adding up to 7 high-paying jobs to the community. Founded in San Francisco in 0, Womply uses technology and data to grow, protect and simplify small business. We are thrilled to be expanding into Utah County and to tap into the great pool of local talent, said Cory Capoccia, president of Womply. We aim to build a lasting presence in the area. SoFi Picks Utah for Regional Office (0) SoFi will open a regional office in Utah, adding up to 00 jobs to the community. SoFi is an exciting disruptive company in both finance and technology, said Val Hale, executive director of GOED. SoFi has indicated that the project will create up to 00 jobs over the next five years. The projected new state wages over the life of the agreement are expected to be approximately $. million. Snap! to Expand Utah Headquarters (0) Snap! is expanding their customer service and corporate operations in Utah. The project will add up to jobs to the community and produce an expected $. million in capital investment. Supporting local business growth is one of the most important economic development investments we can make in the state of Utah, said Val Hale, executive director of GOED. This new addition strengthens our economy by offering residents diverse jobs in the growing financial tech industry. University of Utah Opens New Lassonde Entrepreneur Institute (0) In 0, the Lassonde Entrepreneur Institute at the University of Utah opened the $ million Lassonde Studios, a one-of-a-kind facility where students can live, create new products, and launch companies. The Lassonde Entrepreneur Institute is a nationally ranked hub for student entrepreneurship and innovation. The 0,000 square foot first floor is dedicated to innovation space and workshops, including workbenches, group coworking areas, -D printers, laser cutters, power tools, and more. Health Equity to Grow its Utah Headquarters (0) HealthEquity announced that the company will expand at its Utah headquarters, adding an estimated 00 jobs over the next six years. We congratulate HealthEquity on their continued growth, said Val Hale, executive director of GOED. We re always thrilled when successful companies not only start but also stay here. s more company leaders acknowledge Utah s business-friendly environment, they see their investment truly pays off. llstate subsidiary (Esurance) bringing 700 jobs to Ogden (0) Esurance, a subsidiary of llstate, will open a customer-service office in Utah that is expected to create 700 new jobs with a capital investment of $,000,000. Esurance President and CEO, Gary Tolman, said, Weber County has a talented workforce that will help us to continue to provide a seamless experience for Esurance customers as we expand. University of Utah opened the $ million Lassonde Studios. Snap! 0- map # Snap! is a digital finance company that specializes in providing consumer financing and rent-to-own purchase options to retailers and consumers. SoFi 0- map # SoFi is a technology driven finance company specializing in refinancing student loans, consolidation, mortgages, personal loans, M loans, and more. Womply <0 map #0 Womply is a software-as-a-service (SaaS) provider to small and medium businesses, using technology and data to grow, protect, and simplify small business. San Francisco-based SoFi will add 00 jobs to it s new Salt Lake City regional office. Expanded Esurance office will bring 700 jobs to Ogden. *SOURCE: Department of Workforce Services EDCUTH FINTECH PROFILE EDCUTH.ORG EDCUTH.ORG EDCUTH FINTECH PROFILE

Incentives STTE INCENTIVES DETILS Financial Services Utah has a thriving financial services industry and is known as the nation s leader in industrial banking.

Notable Employers Employees Discover Products 000- Fidelity 00- Economic Development Tax Increment Financing (EDTIF) The EDTIF tax credit is a post-performance, refundable tax credit rebate for up to

4 Incentives STTE INCENTIVES DETILS Financial Services Utah has a thriving financial services industry and is known as the nation s leader in industrial banking. Utah is home to the highest number of industrial banks in the nation with active industrial bank charters, eight of which are in the top ten in the nation by asset size. Notable Employers Employees Discover Products 000- Fidelity 00- Economic Development Tax Increment Financing (EDTIF) The EDTIF tax credit is a post-performance, refundable tax credit rebate for up to 0% of new state revenues (sales, corporate, and withholding taxes paid to the state) over the life of the project (typically - years). It is available to companies seeking relocation and expansion of operations to the State of Utah who are looking to add at least 0 jobs with annual wages of at least % of county average annual wages, have demonstrated company stability and profitability, and have demonstrated competition with other locations. Companies must also obtain commitment from the local government to provide local incentives Employment 7,070 Year Growth.7% nnual Wage $,70 Goldman Sachs 000- Wells Fargo 000- Zions ank 000- Industrial ssistance Fund (IF) Rural Fast Tract Custom Fit Training LOCL INCENTIVES Tax Increment Financing (TIF) The Industrial ssistance Fund is a post-performance grant for the creation of high-paying jobs in Utah. Companies are required to obtain commitment from local government to provide local incentives, create new high-paying jobs in the state (at least 0 jobs and at least % of county average annual wages), demonstrate company stability and profitability, and demonstrate competition with other locations. The Rural Fast Track (RFT) Program is a post-performance grant available to small companies in rural Utah. The program provides an efficient way for existing small Utah companies to receive incentives for creating high paying jobs in the rural areas of the state and to further promote business and economic development. Custom Fit Training is a partnership between the Utah Colleges of pplied Technology and other select sister institutions across the state, and the local business community. Its mission is to provide customized employee training to businesses at an affordable cost. The Utah State Legislature appropriates funds each year as an investment in custom fit training. DETILS Cities and counties may award incentives to companies locating in Economic Development reas (ED), Urban Renewal reas (UR) or Community Development reas (CD). The city or county determines ED/UR/CD areas on a local level. Incentive dollars are generated through the creation of new property tax increment that a development will generate. When a company constructs a new building, for example, its property tax increment is the result of the assessed value of the building multiplied by the property tax rate. In an ED or UR, all public entities entitled to property tax agree to rebate their increment back to the new development for a specified period of time to incent the development to occur. In a CD, public entities must opt-in on a property tax rebate if they see fit. Incentives are awarded as a percentage of the tax increment created by the development. EDs are intended for development on land sites that will result in the value-added creation of jobs. There is no requirement for blight in an ED and the property can be vacant or partially improved land. URs are blighted areas that require local assistance to reasonably justify any type of economic renewal. CDs are intended to undertake any economic or community development purpose of the city, including job growth or retail sales. COMPNY LOCTION JOS / CPITL INVESTMENT EDTIF TX CREDIT PERCENT / YERS / CP FCILITY FUNCTION llstate Ogden City 700 / $M % / 0 / $. M Regional Office 0 Goji Roy 00 / $00K 0% / 7 / $.0 M Regional Office 0 Goldman Sachs Salt Lake City 0 / $0M 0% / 0 / $.0 M Regional Office 0 Snap West valley City 00 / $.M % / / $, Customer Service 0 SoFi Information Technology COMPNY Cottonwood Heights YER 00 / $M 0% / / $. M Regional Office 0 Utah has a robust information technology industry and has been referred to as the next Silicon Valley, and an up-and-coming software and information technology hub. Utah ranked second in the nation in fastest-growing states for tech jobs at an increase of.% in 0. Employment,7 LOCTION Year Growth 7.% JOS / CPITL INVESTMENT nnual Wage $7, EDTIF TX CREDIT PERCENT / YERS / CP Notable Employers Employees dobe 00- DOMO 00- eay 00- IM Flash Technologies 00- Qualtrics 00- FCILITY FUNCTION Dell EMC Draper 700 / $M % / / $.7 M Regional Office 0 YER Revolving Loan Funds (RLFs) Numerous RLF programs have been established in the state to promote economic development within Utah. RLFs are a gap financing measure used primarily for development and expansion of small businesses. Communities in Utah offer RLFs to provide access to a flexible source of capital to be used in combination with more conventional sources. Often RLFs act as a bridge between the amount a borrower can obtain through private market funding and the amount needed to start or sustain a business. RLFs issue loans at competitive market rates. Durations and loan amounts vary according to the use of funds. Entrata Lehi / $M 0% / / $,0 Regional Office 0 Jive Communications Orem 7 / $.M % / / $, Regional Office 0 Peek Sandy 0 / $M % / / $0, Regional Office 0 SoFi Cottonwood Heights 00 / $M 0% / / $. M Regional Office 0 EDCUTH FINTECH PROFILE EDCUTH.ORG EDCUTH.ORG EDCUTH FINTECH PROFILE

5 Cost Profile Industry Wages (nnual Median) Primary Occupational Wages (nnual Median) $K UTH $7,7 CLIFORNI $,7 $0,7 $, TEXS $7,0 NTIONL $,0 UTH $, CLIFORNI $,0 $, $7, TEXS $, NTIONL $0, $7,00 UTH $, CLIFORNI $,0 $,00 $,0 TEXS $,00 NTIONL $, UTH $,0 CLIFORNI $,700 $,0 $,70 TEXS $7,0 NTIONL $,0 UTH $,70 CLIFORNI $,0 $,0 $,0 TEXS $,0 NTIONL SOURCE: ureau of Labor Statistics, May 0 $,70 $,0 $0,0 $0, $,0 UTH CLIFORNI TEXS NTIONL $7,0 Information Technology Financial Services Computer & Information Systems Managers Financial Managers Software Developers/pplications Sales Engineers Other Comparative Wages in FinTech OCCUPTION UTH CLIFORNI TEXS NTIONL udget nalysts $7,0 $0,0 $7,0 $7, $7,0 $7,0 Financial nalysts $7, $,0 $7,70 $0,070 $7,0 $0, Real Estate $ 7 70 UTH $.7 CLIF. $. illinois $7. $. Office Construction ($/sq.ft.) TEXS $.0 SOURCE: RSMeans NTIONL $.0 $0 0 UTH $.7 CLIF. $.0 IL. $. Office Lease ($/sq.ft.) $. TEXS $7. SOURCE: Loopnet N/ Computer and Information Research Scientists $,0 $,00 $,70 $,00 $,0 $,0 Computer Programmers $,0 $,0 $7, $,00 $7,0 $7,0 Software Developers/ Systems Software $,0 $, $,0 $,00 $, $,70 Web Developers $,0 $7,0 $,0 $7,70 $,0 $,70 Sales Representatives/ Services/ll Others $7,70 $,00 $,70 $,0 $,0 $,700 Customer Service Representatives $0,70 $,0 $,70 $,0 $0,00 $,70 Utilities Taxes $,000,00, UT.. TX. 7.7 NT..0 Electricity / Commercial ( /kwh) Natural Gas / Commercial ($/00 Feet ) UT. $ CLIF.. CLIF. $, IL..7 $,. $, TEXS $, $, NTIONL $ % % % % % % Flat Rate UTH $.7 UTH.% Flat Rate CLIF. $.0 CLIF. 7.7% Flat Rate $.0 SOURCE: Energy Information dministration, October 0.% Flat Rate N.Y. $.7 TEXS $. NT. $7. SOURCE: taxfoundation.org GRT* TEXS.% NTIONL EDCUTH FINTECH PROFILE *SOURCE: Department of Workforce Services & ureau of Labor Statistics Property Tax (Collections per capita) Corporate Income Tax *GRT = Gross Receipts Tax. usinesses are taxed on LL business sales transactions instead of corporate income.

6 Education & Labor State of Education Utah is home to major colleges and universities with a student population of more than,000. Utah has thriving Financial Services and Information Technology industries that cover the full spectrum of the industries, and therefore requires unique and specific education and training to meet the needs of the industries. Many colleges and Universities in Utah offer finance and IT related degrees. Utah has an educated workforce, with more than % of the adult population receiving a high school diploma, 70% with some college experience, and more than 0% having earned a bachelor s degree. 0 - T O T L S TT E W I D E E N R O L L M E N T & D E G R E E S -% -Year 0, % -Year,7 0,000 0,000,000 00,000 0,000 SOURCE: Utah System of Higher Education T O P T H R E E S C H O O L S F O R F I N N C E N D I T Y G R D U T E S % -Year % -Year righam Young University University of Utah 0, % -Year 7% -Year 0 s Utah State University 0 0% -Year,7 0 s 0 % -Year 0, 0 0 s s The Labor Picture Utah s labor force is well educated, growing, and affordable. Utah created nearly,000 jobs in 0, and maintained the highest job growth rate in the nation for seven months of the year. Utah is the youngest state in the nation with a median age of 0.7, and has an average wage of $,0 which is almost % lower than the nation. C O M P N Y Goldman Sachs l NNOUNCEMENT YER 00, 0, 0 l T O T L J O S,0 F I N N C E N D I T E M P LOY M E N T I N D E X & Insurance Computer and Information Research Scientists Software Developers, pplications Computer Programers This graph represents an index based on location quotients showing the large concentration of financial-related occupations in Utah. ny occupation above the national average of 0 demonstrates a competitive advantage in Utah. Financial Examiners Financial nalysts Our Utah office has grown to become the th largest office in the world for Goldman Sachs. That growth is largely attributed to the quality of life and access to talent that Utah provides. Information Technology National verage 7 SOURCE: ureau of Labor Statistics E D C U T H F I N T E C H P R O F I L E E D C U T H. O R G D V I D L N G, P R T N E R, G O L D M N S C H S

Research Call Michael Stachitus, Research Manager: 0--

7 EDCUtah questions? Call Theresa Foxley, President & CEO: 0--7 Project questions? Call Erin Farr, usiness Development Manager: 0-- Research questions? Call Michael Stachitus, Research Manager: 0-- Have questions about the FinTech industry in Utah? Call us at South Main Street, Suite, Salt Lake City, UT UTH () edcutah.org

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