40 Corporate

Innovation Labs
In Finance 2020
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40 Corporate Innovation Labs In Finance

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Some of the biggest names in finance are
creating fintech innovation labs to solve
the most pressing challenges faced by
banks, merchants, and consumers.

With recent advances in blockchain, cryptocurrency, contactless

payments, and more, finance is primed for disruption.

As fintech plays a larger role in the financial ecosystem,

companies are looking for ways to use tech to solve problems and
find new opportunities in the space.

One popular approach: in-house financial innovation labs.

Companies are turning to accelerators, funds, and labs to try to

find the next big thing that will reduce fraud, speed up transaction
times, and catch on with consumers.

We’ve created a list of finance innovation labs from some of the

biggest names in the industry, as well as from newcomers looking
to make a name through tech.

We’ve written about corporate innovation theater before — and

how sometimes corporate innovation goes wrong.

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1. VISA — INNOVATION CENTERS

FOUNDED: 2013
Visa’s Innovation Centers focus on technologies in areas like
authentication, digital, security, and the cloud. The centers are
located in San Francisco, Dubai, Singapore, Miami, and London,
and feature collaborative spaces to prototype ideas with clients as
well as experience galleries to showcase new solutions.

Through its Fast Track program, Visa partners with fintech

startups to give them access to its network and help them scale
more quickly. As of May 2020, more than 140 companies are
enrolled in the program.

Notable projects: Headquartered in Visa’s London Innovation

Center, the Visa Global Transit Solutions program is working to
“accelerate seamless, friction-free commuting with contactless
payments.” Visa has more than 500 active transit projects around
the world as of July 2020, and it saw contactless transactions for
transit fares double between April and June 2020.

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2. DBS BANK — DBS ASIA HUB 2

FOUNDED: 2016
DBS launched its Hyderabad, India-based DBS Asia Hub 2 (DAH2)
in 2016, the bank’s first and largest tech development center
outside of Singapore. Over 2,000 employees work in a retreat-like
setting, collaborating on projects that aim to drive technological
innovation at the bank.

Notable projects: DAH2 partnered with the NASSCOM foundation

to launch the DAH2 Digital Literacy Center in Hyderabad. The
center aims to empower 1,000 people from the community through
digital literacy and basic computer skills training.

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3. FIDELITY — FIDELITY LABS

FOUNDED: 2005
Teams at Fidelity Labs focus on developing tools and strategies
that will drive growth at the $3.3T investment firm. Since its
inception in 2005, Fidelity Labs has expanded its focus to include
incubating and scaling new businesses.

Notable projects: Fidelity Labs interviewed thousands of users to

better understand the student debt crisis, and how the team might
be able to use tech to help. Following the interviews, they created
a platform that helps borrowers see all of their student loans in 1
place and receive guidance on debt repayment plans. The product
is now part of the Fidelity Student Debt Program, which offers loan
repayment assistance as an employee benefit.

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4. WELLS FARGO — DIGITAL INNOVATION

FOUNDED: 2015
In February 2020, Wells Fargo introduced a new organizational
structure, with an added focus on digital innovation. Its newly
created Strategy, Digital Platform, & Innovation group aims to drive
the development and application of new technologies and business
models at the bank. Focuses include the potential of artificial
intelligence (AI) in financial services and online banking innovations.

In addition, the Wells Fargo Startup Accelerator runs a 6-month

program that enables selected startups to leverage the bank’s
expertise to grow their products and potentially receive investment.

Notable projects: From mid-March to April 2020, Wells Fargo

customer digital banking sign-ons increased by 23%. In response
to the surge in demand amid the Covid-19 pandemic, Wells Fargo
rolled out new digital capabilities for customers, such as online
mortgage payment referral requests and PPP loan applications for
small businesses.

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5. JP MORGAN CHASE —
FINANCIAL SOLUTIONS LAB

FOUNDED: 2015
Founded by JPMorgan, the Financial Solutions Lab is a $60M,
10-year program managed by the Financial Health Network and
supported by Prudential Financial. The lab was designed to spur
innovations that help support low- to moderate-income Americans
save more and improve their credit. Teams work in collaborative
groups to develop new financial apps and tools.

Notable projects: Brightside, a winner of the Financial Solutions

Lab’s 2019 “Workplace Financial Health” Challenge, is a financial
planning platform that partners with businesses to help employees
achieve financial wellness. The lab awarded Brightside $130,000
in prize money. As of October 2020, the company has raised
over $39M through subsequent rounds of funding, and was a CB
Insights Digital Health 150 pick.

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6. CITI — CITI INNOVATION LABS & D10X

FOUNDED: 2011
Citi’s global network of Innovation Labs is designed to speed
up work on disruptive products and technologies like IoT and
blockchain. Located in 5 cities around the world — Dublin, Tel
Aviv, London, New York, and Singapore — lab teams focus on
developing forward-looking digital solutions for the bank.

Housed under Citi’s venture capital arm, D10X focuses on internal

innovation and supporting entrepreneurship within the bank. Its
Entrepreneurs in Residence program aims to help bank employees
identify client needs and develop competitive solutions in
response. Employees pitch ideas to senior leadership at the bank
and can raise funding from Citi itself. The program has reportedly
more than 100 internal startups under development.

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Notable projects: The labs developed a machine learning- and
natural language processing-powered system that can generate
automatic responses to client questions sent over channels like
email and chat. The program, dubbed the Inquiry Engine,
reportedly gained traction as Citi transitioned to remote work
during the pandemic.

Two products that have been launched through D10X include

Proxymity, a digital proxy voting platform, and CitiConnect for
Blockchain, formed through a partnership with Nasdaq and the Citi
Ventures portfolio company Chain.

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7. CAPITAL ONE — CAPITAL ONE LAB

FOUNDED: 2012
Capital One Lab aims to streamline the product creation process,
with a focus on consumer-first design. It operates 2 labs, one in
Washington DC and the other in New York City, which focus on
ventures that can have a significant business impact in the short
term (from 6 months to 3 years). Specifically, the lab looks to back
engineering solutions, customer experiences, and new products
that tie in with Capital One’s focus on reimagining banking and
lending through machine learning and virtual payments.

Notable projects: Current projects at the lab include developing

infrastructure for machine learning that makes model training
simpler, and a reimagined payment card that includes more
functionality.

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8. DEUTSCHE BANK —
DEUTSCHE BANK LABS

FOUNDED: 2016
Deutsche Bank has innovation labs in New York, Silicon Valley,
London, and Berlin. Deutsche Bank Labs connect technology
startups with the bank’s internal teams, enabling them to adopt
products and solutions to better serve its clients and employees.
The labs aim to help Deutsche Bank evaluate and adopt emerging
technologies, develop a culture of innovation, and contribute to the
bank’s digital strategy.

Notable projects: Eye-tracking solution Eyevido was discovered

by the Deutsche Bank Berlin Lab as a very early-stage startup.
Working with the lab, the Eyevido team was able to conduct eye-
tracking studies of Deutsche Bank’s retail banking websites to
help improve the user experience for customers.

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9. FIS GLOBAL —
FIS VENTURES & IMPACT LABS

FOUNDED: 2020 (FIS VENTURES)

In April 2020, FIS launched FIS Ventures, its new corporate
venture investment arm. The company plans to invest $150M
in fintech startups focusing on emerging technologies like AI
and digital enablement. The new venture complements the
FIS FinTech Accelerator, which is in its fifth year. The 12-week
program, produced in partnership with The Venture Center, aims to
empower selected fintech startups through guided workshops and
networking opportunities.

FIS Global also operates innovation labs around the world, as well
as a recently launched internal innovation team called Impact Labs
that focuses on scaling products for the company.

Notable projects: FIS partnered with The Clearing House to bring

its RTP Network, a real-time payment processing and settlement
system, to small- and mid-sized banks. Through the FIS managed
service, participating institutions can reportedly connect to the
network more quickly, allowing banks and their customers to
instantly settle payments.

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10. PARTNERSHIP FUND FOR
NEW YORK CITY AND ACCENTURE —
FINTECH INNOVATION LAB

FOUNDED: 2002
The Partnership Fund for New York City (formerly the New York
City Investment Fund) and Accenture jointly run the FinTech
Innovation Lab, a 12-week program that focuses on early- to
growth-stage startups. Participants get a workspace, mentorship,
connections to industry leaders and user groups, feedback on
products, and weekly workshops and panel discussions.

At the end of the program, startups participate in a demo day,

showcasing their brands to potential investors. Since the lab’s
founding, additional labs have been opened in London and
Hong Kong.

Notable projects: Of the 79 companies that have gone through

the New York lab program, 14 have been acquired. They have also
raised a collective $1.3B. Graduates include password manager
Dashlane, valued at $505M as of May 2019, and AI surveillance
software Digital Reasoning, which has gone on to raise over
$115M in funding.

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11. PWC — PWC EXPERIENCE CENTERS

FOUNDED: 2015 (EXPERIENCE CENTERS), 2017 (DIGITAL

TRANSFORMATION AND INNOVATION CENTER)
PwC Digital Services operates Experience Centers around the
world that bring together consultants and clients in a “sandbox”-
style environment. First launched in 2015, the Centers are aimed
at encouraging collaboration between creatives and engineers on
digital-first solutions.

PwC also sponsors the Digital Transformation and Innovation

Center at Carnegie Mellon University. Formerly known as the
Risk and Regulatory Services Innovation Center, the center has
expanded its mission since launching in 2017 to “examine the
impacts of digital technologies across a variety of industries” as it
aims to develop solutions for business challenges. Current focuses
include data analytics, cybersecurity & privacy, and safe cities.

Notable projects: One of the projects researchers at the Digital

Transformation and Innovation Center are currently working on
is detecting the cues in human voices that may signal fraud or
impersonation attempts. Potential applications of the tech could
include law enforcement or finance where transactions occur
by phone.

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12. ROYAL BANK OF CANADA —
INNOVATION LABS

FOUNDED: 2017
The Royal Bank of Canada runs several innovation labs in cities
across the world, including in Orlando and Toronto. In 2017,
RBC’s Global Asset Management division launched the RBC GAM
Innovation Lab in Toronto with $20M in funding. The lab, which was
formed from the acquisition of Wiser Investments, a Toronto-based
fintech VC firm, aims to develop RBC GAM’s digital capabilities.

RBC also funds the Rogers Cybersecure Catalyst, a cybersecurity

training and research center at Ryerson University, as well as
ONRamp, a startup accelerator at the University of Toronto.
Through RBC Ventures, the bank invests in sectors like fintech,
AI, and information security.

Notable projects: One project developed out of RBC’s Orlando-

based innovation lab is NOMI, a mobile banking tool that uses AI
to provide RBC customers with tailored insights into their financial
health, chatbot functionality, budgeting tools, and more. As of
Q1’20, NOMI has more than 1.1M monthly users.

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13. MASTERCARD — MASTERCARD LABS

FOUNDED: 2010
Mastercard Labs looks to quickly develop innovations and
products that will drive growth for the company at large. By
investing in “edgier ideas,” the lab aims to stay ahead of the
competition and help improve the customer shopping experience.
Since Mastercard operates in over 200 markets, the company
pushes out innovations regionally, creating more standardized
versions of products that can be adjusted on a geographic basis.

Fintechs also play a role in Mastercard Labs’ innovation strategy.

Mastercard partners with seed- and Series A-stage startups
through its Start Path program, enabling selected fintechs to
access Mastercard’s resources and network.

Notable projects: Mastercard Labs, in partnership with Samsung,

Airtel Africa, and Asante, developed a Pay-on-Demand payments
platform that aims to provide consumers and merchants in Africa
more convenient access to financing. The platform is reportedly
set for an initial pilot in Uganda in October 2020.

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14. SYNECHRON — FINLABS

FOUNDED: 2017
Synechron has fully invested in the FinLabs concept, with 13
labs now open in countries across the world like India, Serbia,
the Netherlands, and the US. These labs aim to act as innovation
hubs for banking customers to collaborate and foster new ideas in
interactive spaces.

FinLab users have access to digital specialists, R&D experts, and

accelerator programs. The labs specifically focus on technology
solutions in blockchain, AI, insurtech, and regtech.

Notable projects: A blockchain mortgage lending application looks

to harness the power of blockchain technology and apply it to the
mortgage industry. Financial institutions using it can decrease
errors, fraud, and processing times while improving workflows.

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15. GFT TECHNOLOGIES —
DIGITAL INNOVATION LAB

GFT’s Digital Innovation Lab focuses on improving the consumer

banking experience, both online and in branches, while ensuring
banks are meeting security and efficiency needs. The lab has
different workspaces users can use for hands-on experiences. Its
retail space, for example, lets teams test in a model that mimics a
typical shopping environment.

In its branch space, the lab seeks to use digital technology and IoT
to provide a more personalized banking experience for consumers.
In 2018, GFT acquired the Insurance and Innovation Performance
Center run by V-NEO, expanding the size of its innovation lab.

Notable projects: GFT and digital bank Fidor formed an innovation

partnership in 2016. Running out of the Digital Innovation Lab, the
focus of the partnership is creating mobile finance and banking
apps. One outcome is the mobile o2 Banking solution, an app built
for Germany-based telecom company Telefónica Deutschland.
With o2, Telefónica Deutschland can offer its own full-service
mobile bank to customers.

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16. COMMONWEALTH BANK —
THE FOUNDRY & X15VENTURES

FOUNDED: 2020
In June 2020, Commonwealth Bank completed work on The
Foundry, a nearly 550,000-square-foot building that will house
5,500 bank employees, including its technology teams and
innovations labs. Located in the “innovation corridor” just outside
of Sydney, the workplace is designed to encourage collaboration
and innovation among the bank’s employees, with its large open
spaces and connecting atriums.

In February 2020, the bank also launched its fintech investment

vehicle, x15ventures. Rather than act like a traditional CVC arm,
CommBank’s venture aims to “build” rather than simply “buy”
businesses, leveraging the expertise of the bank as well as its partners
— Microsoft, Square Peg, KPMG, and Zetta — to help entrepreneurs
develop digital solutions for the bank’s 15M customers.

Notable projects: Two ventures that have emerged from x15

include Home-in, a platform that guides buyers through the home-
purchasing process, and Vonto, a mobile business insights app.

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17. BBVA — INNOVATION LABS

FOUNDED: 2007
BBVA’s customer-centric focus is highlighted through its
innovation labs. It does this by “crowd-inventing” — inviting teams
across different departments and functions to collaborate under
one roof.

BBVA’s Open Innovation unit also operates “Open Spaces” in Spain,

Mexico, and Colombia, hubs of collaborative innovation. The Open
Spaces are home to BBVA’s Open Talent competition as well, which
seeks to connect fintechs with BBVA to solve bank challenges.

In 2018, BBVA partnered with the fintech venture capital firm

Anthemis to launch a venture creation studio in London.

Notable projects: Selfie & Go was developed by the startup Veridas,

a joint venture between Das-Nano and BBVA. The technology
enables consumers to open a bank account online as well as
complete payments using a facial recognition system once they have
registered via a related app. BBVA employees used the Selfie & Go
app to reserve rooms and cafeteria services in order to avoid lines.

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18. RABOBANK — INNOVATION AT
RABOBANK

The innovation arm of Rabobank has 2 main focuses: develop

better financial services for customers, and help solve the global
food problem. While these might seem like disparate goals,
Rabobank is utilizing big data, blockchain, and IoT technology to
explore opportunities for both at its Strategy & Innovation hub,
Innovation Factory studio, and Tech Lab.

In addition, Rabo Frontier Ventures (RFV), a €120M ($142M)

investment fund and subsidiary of Rabobank, is aimed to support
the bank’s overall innovation strategy. Its focus is on “new
business models, often built on emerging (software) technologies
in the Fintech and Food & Agri space.” Beyond capital, RFV
provides access to the Rabobank network as well as mentorship.

Notable projects: SurePay is a payment authentication service that

lets consumers vet the information of the payee during financial
transactions. It was rolled out in 2017 across the Netherlands, and
now more than 90% of all payments in the country are checked
using the IBAN-Name Check system invented by SurePay.
Rabobank announced in February 2020 that the corporate startup
would be spun out of the group.

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19. BNY MELLON —
GLOBAL INNOVATION CENTERS

FOUNDED: 2014
Bank of New York Mellon operates multiple Global Innovation
Centers around the world. Each center was created with a specific
focus in mind. However, the overall goal of the centers is to
provide hubs for collaboration, finding solutions at “the leading
edge of financial technology” for clients. To achieve this goal, the
bank works directly with clients to identify specific needs and
opportunities for solutions.

Notable projects: A system for better communication between

chatbots came out of a hackathon at the Singapore Innovation
Center. The BNY Mellon team partnered with Deutsche Bank
to create a system that would allow their respective chatbots
to integrate. This reduces the number of manual responses on
securities trades, allowing information to move more quickly.

In July 2020, BNY Mellon announced it had developed jointly with

Deutsche Bank an “API-enabled foreign-exchange (FX) solution”
that reduces “confirmation times for restricted emerging-market
currency trades.” The solution leverages bots at the banks that
can communicate instantly.

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20. BARCLAYS — RISE (CREATED BY
BARCLAYS) & BARCLAYS ACCELERATOR
(POWERED BY TECHSTARS)

FOUNDED: 2015 (RISE), 2014 (BARCLAYS ACCELERATOR)

Since 2014, Barclays has partnered with fintechs through the
creation of a global fintech community called Rise, which has
physical spaces located in financial hubs around the world, and
through targeted accelerator programs, which are geared toward
helping promising startups scale their business.

Rise — also known as the “Home of FinTech” — aims to connect

technology, talent, and trends from across a global network
to accelerate innovation and growth in the financial industry.
Rise operates 3 physical workspaces in the US, UK, and India,
where startups and scaleups can connect, create, and scale
their businesses, backed by Barclays’ global network of industry
experts, mentors, investors, and partners.

The Barclays Accelerator, powered by Techstars, is a 13-week

startup program aimed at shaping and scaling fintech businesses.
Since 2014, the program has connected startups to mentors
from across Barclays’ and Techstars’ global network of clients,
partners, and experts. Startups in the program focus on creating
solutions that could help solve some of the finance industry’s
biggest challenges.

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Barclays also backs the Female Innovators Lab, which funds
female entrepreneurs innovating in financial services, and the
Barclays Black Founder Accelerator, which helps Black founders
scale their pre-seed business.

Notable projects: Flux, a 2017 graduate from the accelerator, is a

software platform that, when connected with partner merchants,
allows users to see a full itemized accounting of purchases from
within their banking app. In January 2020, Barclays acquired a
minority stake in the company. Flux has issued more than 2.5M
digital receipts to customers as of mid-2020.

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21. PAYPAL — INNOVATION LAB

FOUNDED: 2016
PayPal’s Innovation Lab is billed as a “first-of-its-kind
collaboration between PayPal and the Singapore fintech
ecosystem, including government agencies, industry associations,
small-medium businesses, and universities.”

To find new ideas, PayPal runs an incubator out of its Singapore

center that provides advice and support around business
infrastructure, access to fintech mentors and business leaders,
and a network of investors.

Notable projects: Incubator graduate TenX allows users to make

payments online and offline at more than 54M merchants in over
200 countries, using debit/credit cards that automatically convert
cryptocurrencies into native currencies.

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22. TRANSUNION — INNOVATION LAB

FOUNDED: 2017
TransUnion’s Innovation Lab aims to help lenders reduce risk
when entering the market by giving them access to data in
a fast-paced testing environment. The lab’s goal is to create
“an immersive, tailored experience where lenders can learn to
accelerate growth by turning data into action.”

Participants can access TransUnion’s proprietary data as well

as experts who can help run models in real time. This approach
means participants can get a full model analysis in just a few
days working with TransUnion’s data experts, versus weeks
or months of testing. Amid the Covid-19 pandemic, the credit
reporting agency pivoted to conduct “virtual innovation labs,”
giving customers access to TransUnion experts and data despite
the crisis.

Notable projects: The Startup Credit Kit gives access to

depersonalized data to participating startups and investors
collaborating with TransUnion. The kit offers two tracks: a Planning
Package that provides depersonalized solutions for businesses
in the early stages of development, and a Launch Package with
personalized solutions for startups that are ready to go live.

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23. MORGAN STANLEY —
MULTICULTURAL INNOVATION LAB

FOUNDED: 2017
Morgan Stanley’s Multicultural Innovation Lab is trying to solve the
large gap in funding for minority founders. The lab seeks to back
technology-enabled startups that have raised funding and have a
“multicultural or woman founder or co-founder.”

The Multicultural Innovation Lab offers a 6-month intensive

accelerator program to a select cohort of startups. It provides
$200,000 in funding, a tailored curriculum, office space,
mentorship, and access to Morgan Stanley’s global network.
In 2021, the lab plans to double the size of the cohort to 20
companies and increase its funding commitment to $250,000.

Notable projects: Goalsetter, selected for the lab’s 2018 cohort, is

a gifting and savings platform aimed at kids. The startup was also
one of the winners at the Center for Financial Services Innovation
Fourth Annual $3M Challenge in 2018. In September 2020, the
company launched a debit card for teens.

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24. US BANK — INNOVATION

While not technically a lab, US Bank’s Innovation concept is

simple: it aims to throw out convention and look for great ideas
that might be hiding in plain sight. This means encouraging
networking, collaboration, and interaction across different
divisions of US Bank, as well as with external players. The bank
hosts hackathons, partners with fintechs, and frequently meets
with small local business owners to listen to their pain points.
Notable projects: In May 2019, US Bank launched Expense
Wizard, an AI-powered tool that aims to make it easier for
business travelers to file expenses. In June, the bank debuted a
virtual corporate credit card, and in partnership with TravelBank,
announced in September that with TravelBank’s technology, it had
added integration between the the card and Expense Wizard.

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25. TD BANK GROUP —
TD LAB (PARTNERED WITH COMMUNITECH)

FOUNDED: 2014
TD Bank Group chose the Communitech Hub in Kitchener-
Waterloo as the home base for the TD Lab to be at the center of
Ontario’s startup scene. The TD Lab’s team is small and includes
a rotating group of interns who can learn about design thinking
and problem solving within an environment that embraces
experimentation and testing. The Lab focuses on the financial
challenges of college students.

Notable projects: A recent prototype to come out of the TD Lab

is the Student Budget Calculator, which can help students more
accurately predict their school and program costs to budget
effectively.

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26. PNC — ILAB & NUMO

FOUNDED: 2015 (ILAB), 2017 (NUMO)

PNC has a heavy focus on being a customer-centric bank.
Subsequently, the goal of iLab is to “provide a space where PNC
can develop technology, process and operations, space design,
sales and service scripts, and marketing material.” Every idea that
is tested in the lab is focused on improving the overall customer
experience at retail banking centers, within apps, or in other digital
marketplaces.

In 2017, PNC launched Numo, a “part innovation lab, part tech

incubator” and independent subsidiary of the bank. The lab
sources ideas from PNC employees, external entrepreneurs, and
its own team to build innovative products for the financial services
sector, with the eventual goal of spinning them out.

Notable projects: Indi, supported by PNC and Numo, is a banking

app for freelancers. While money deposited in the digital-only
bank accounts is held by PNC bank, the app also contains non-
traditional banking features directed at gig economy workers, such
as automatically saving money for taxes.

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27. SANTANDER — INNOVATION

FOUNDED: 2014 (INNOVENTURES), 2020 (X TOMORROW

CHALLENGE)

In September 2020, Santander announced that it would spin out

InnoVentures, its hybrid fintech VC firm and an accelerator, to
form Mouro Capital. Following the reported success of
InnoVentures, Santander will double its allocated funds to the
new venture to $400M.

In February, the bank launched the X Tomorrow Challenge, “a

global entrepreneurship challenge” aimed at eliciting solutions
for a post-Covid-19 world. Twenty winners were selected from
over 2,200 submissions. The winning projects received a €20,000
($23,400) prize as well as access to mentors and investors.

Notable investments: Portfolio investments include Kabbage, an

automated platform for small businesses to access capital, and
Ripple, a platform that allows users (including banks and financial
institutions) to send money globally using blockchain technology.

Most recently, it participated in Mexico-based digital bank Klar’s

$15M Series A funding round.

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28. HSBC — GLOBAL DATA AND INNOVATION
LABS & STRATEGIC INNOVATION
INVESTMENTS (SII)

FOUNDED: 2019 (GLOBAL DATA AND INNOVATION LABS),

2014 (STRATEGIC INNOVATION INVESTMENTS)

In 2019, HSBC launched data and innovation labs in Toronto and

London. The labs aim to “accelerate the development of innovative
data, cloud, and robotics solutions for clients,” with a focus on AI
applications in banking and fostering promising tech talent at the bank.

HSBC also aims to spur innovation through its Strategic Innovation

Investments (SII) group, which falls under the umbrella of the
corporate venture capital arm of the bank. SII focuses on investing
in companies that offer products or services that could improve
HSBC’s financial technology. Portfolio companies tend to fall
within big data, open banking, security, and operational efficiency.

SII also manages other consortium investments from across the

entire HSBC Group.

Notable investments: Portfolio investments by SII include OpenFin,

a finance-focused operating system, and Kenna Security, a risk
intelligence platform.

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29. AMERICAN EXPRESS —
AMEX DIGITAL LABS

FOUNDED: 2017

American Express’ Digital Labs spearheads the card company’s

innovation strategy. Its 150 employees focus on developing
payment solutions outside of credit cards, like contactless
payments and QR codes, as more and more consumers turn to
mobile payments. Beyond building new products internally, Digital
Labs is also increasingly looking to startups to develop new tech in
partnership with AmEx’s venture arm, American Express Ventures.

American Express Ventures focuses on investing in startups that

will enhance AmEx’s existing business. Of the venture’s more
than 60 portfolio companies, two-thirds are in partnerships with
the company.

Notable projects: After acquiring virtual travel assistant Mezi in

2018, AmEx’s Digital Labs repurposed the app’s tech to boost the
functionality of its customer service AskAmEx chatbot.

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30. GOLDMAN SACHS — GS ACCELERATE

FOUNDED: GS ACCELERATE (2018), LAUNCH WITH GS

(2018)

Through GS Accelerate, Goldman Sachs looks to foster and support

internal innovation. Employees are encouraged submit ideas that
may lead to growth at the firm, whether by increasing efficiency,
improving customer satisfaction, or generating new revenue
streams. Since the in-house incubator’s launch in 2018, over 1,400
ideas have been submitted and 13 have received investment.

In 2018, Goldman Sachs created Launch With GS, its $500M

investment commitment to startups led by women, Black, Latinx,
or other diverse entrepreneurs based on its “data-driven thesis
that diverse teams drive strong returns.”

Notable projects: PinACL is a GS Accelerate winner that is

currently under development at the incubator. The cybersecurity
program was originally developed to automate security updates
at the firm. Through GS Accelerate, engineers are working to
commercialize the tech.

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Other notable in-house innovation efforts include its “digital
storefront” platform Marquee, digital consumer bank Marcus, and
communications platform Symphony, which began as Goldman
Sachs’ internal messaging platform before being spun out and is
now valued at $1.4B.

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31. ALLY FINANCIAL — TM STUDIO

FOUNDED: 2018

Ally Financial set up TM Studio in North Carolina to test “new

banking concepts.” The studio’s main goals are to “transform
business processes, leverage design thinking principles, and deliver
innovative solutions for consumers.”

The bank sends rotating teams to the studio to help create

prototypes alongside the core TM Studio staff.

Notable projects: Just before the Covid-19 pandemic, TM studio

launched a new feature that enables customers with Ally bank
accounts to segment their savings into different “buckets” based
on their goals. The Ally team was able to track how buckets
changed pre- and post-pandemic — for example, travel fell out of
the top 10 after February.

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32. SOCIETE GENERALE —
DIGITAL INNOVATION

FOUNDED: 2017 (INTERNAL STARTUP CALL), 2018

(GLOBAL MARKETS INCUBATOR)

Société Générale has an expansive innovation network focused on

driving the 150-year-old bank’s digital transformation. The bank
runs 3 innovation labs in Africa that act as incubators for ideas
from its Africa-based subsidiaries. The group also encourages
employee innovation through its “Internal Startup Call,” which has
led to the launch of 10 internal startups.

Furthermore, Société Générale also partners with outside

entrepreneurs and startups in the fintech space. Initiatives under
this umbrella include the Open Innovation platform, which connects
startups with bank experts; the Global Markets Incubator, a
6-month incubation program for financial markets startups; and
Société Générale Ventures, the bank’s €150M ($175M) innovation
fund that invests in both internal and external fintechs.

Notable projects: Two companies launched through Société

Générale’s Internal Startup Call include Prismea, a neobank for
startups (now a subsidiary of the group), and Forge, which focuses
on blockchain tech and reportedly tested the first central bank
digital currency (CBDC) transaction in France.

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33. BANK OZK — OZK LABS

FOUNDED: 2012

OZK Labs is tasked with looking at the near future, 3 to 5 years

down the road, and identifying emerging technologies and
innovations.

Intended to mimic the approach of a startup, it aims to find ways to

disrupt community banking. OZK Labs’ approach is create products
in-house and partner with nascent fintech brands.

Notable projects: In 2018, the lab developed an online account

system for Bank OZK’s commercial real estate team, boosting the
efficiency of the account setup process.

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34. COMMERZBANK — MAIN INCUBATOR

FOUNDED: 2014

Commerzbank developed the Main Incubator as its research and

development arm with a focus on emerging technologies like AI,
IoT, and quantum computing. Using an incubator approach, it has
3 overarching goals: invest in fintech related startups, help develop
disruptive prototypes, and build a community of entrepreneurs.

Notable projects: Backed by the Main Incubator, Gini is an AI-

powered tool that can pull data from images, including checks,
contracts, and receipts, and integrate them into customer’s
banking services.

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35. USAA — USAA LABS

FOUNDED: 2017

USAA created its lab to explore ways innovation could improve its
customer service approach. The lab encourages USAA members
to submit ideas for solving problems via innovation challenges and
projects. Members are also invited to participate in pilot programs
to test products and give feedback as they are developed.

Notable projects: USAA Labs partnered with CarAdvise to

help members get their cars serviced while maintaining social
distancing guidelines amid the Covid-19 pandemic. CarAdvise’s
tech lets customers book car appointments, review recommended
work, and pay all in 1 account.

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36. EASTERN BANK — EASTERN LABS

FOUNDED: 2014

Eastern Labs is looking to innovate in the small business banking

arena, such as small business loans. By leveraging industry and
customer data, the lab is tasked with providing a competitive
advantage over other regional banks which serve similar
customers.

After spinning off the original Eastern Labs in 2017, the bank
rebooted the lab in 2018. It is focused on emerging technologies
like AI and blockchain as it looks to respond to shifting trends in
online banking.

Notable projects: Numerated is a digital loan approval service that

was developed by Eastern Labs. The platform was successful
enough that Eastern Labs spun it out into its own company (along
with the lab) in 2017. Another more recent project developed at
Eastern Labs is Monit, an app that can help small businesses
manage their finances. It is now being offered to the bank’s
business customers.

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37. UBS — STRATEGIC DEVELOPMENT
LAB & DIGITAL FACTORY

FOUNDED: 2019 (DIGITAL FACTORY), 2020 (UBS NEXT)

At the UBS Strategic Development Lab, data scientists,

programmers, and other tech experts work together on data- and
technology-driven solutions for the financial services industry.
Focuses of the lab include digital engineering, electronic trading,
and product strategy. UBS also opened in 2019 its Digital Factory
in Zurich, Switzerland. The factory is intended to foster cross-
functional collaboration between the bank’s teams as they work to
develop new digital applications for clients.

Amid wider changes at the bank, UBS’ Wealth Management

Innovation Lab, which has a narrow focus on finding innovations
and technologies that can help improve the wealth management
process for clients, reportedly went through a major downsizing
effort in July 2019.

In October 2020, UBS launched UBS Next, a $200M fintech investment

vehicle. The bank has partnered with the VC firm Anthemis to help
identify fintech companies for potential investment.

Notable projects: Following the market volatility caused by the

Covid-19 pandemic, the UBS Strategic Development Lab deployed
machine learning tech to “customize bond axes and liquidity for
clients” in its UBS Bond Port platform, helping ensure clients saw
more accurate pricing data.

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38. STANDARD CHARTERED —
EXELLERATOR INNOVATION LAB

FOUNDED: 2016

Standard Chartered operates 6 eXellerator innovation labs around

the world, including in Singapore, Shanghai, and London. The
labs are under the umbrella of Standard Chartered’s SC Ventures
business unit, which also invests in fintech startups and leads an
intrapreneur program to fund employees’ innovative ideas. The
labs themselves look to contribute and respond to the fintech
environment of the region they’re in, while also developing and
testing digital solutions for the bank and its clients.

Notable projects: In March 2020, Standard Chartered launched

nexus, it’s Banking-as-a-Service solution. Nexus was started from
a bank employee’s idea and incubated at SC Ventures. The platform
has 2 partnerships in Indonesia and plans to expand into other
markets in Asia, Africa, and the Middle East as of October 2020.

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39. BANCO BRADESCO — INOVABRA

FOUNDED: 2010

Inovabra is Banco Bradesco’s innovation “ecosystem,” formed

from 8 programs that include a corporate venture arm, internal
innovation centers, and an innovation lab. The lab is designed
to bring tech and business innovation at the Brazil-based bank
together in a space where ideas can be prototyped and tested and
events like hackathons hosted.

Notable projects: The Inovabra lab has reportedly reduced the time
it takes to test prototypes by 60%.

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40. INTESA SANPAOLO —
INNOVATION CENTER LABS

FOUNDED: 2009

Intesa Sanpaolo’s Innovation Center runs several innovation

labs in addition to startup and business accelerators. The
Innovation Center Labs, which include an Artificial Intelligence Lab,
Neuroscience Lab, and Circular Economy Lab, have partnered with
foundations and other academic institutions to bring researchers
together to work on innovative solutions for the bank and its
clients. Through the labs, the Italy-based banking group aims to
keep in step with emerging technologies.

Notable projects: In September 2020, the Intesa Sanpaolo

Innovation Center’s Circular Economy Lab partnered with Cariplo
Factory and Microsoft to launch “Circularity goes digital.” The
initiative will incubate select startups focusing on sustainability
with the aim of promoting circular business models.

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Additional reading

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