The FinTech Innovation Hub at the University of Delaware brings together resources to support entrepreneurs and address equity issues in financial services. | DBT FILE PHOTO

Delaware has been America’s most popular place to do business for more than 100 years. About 68% of all Fortune 500 companies are incorporated in Delaware, and 93% of all U.S. IPOs begin with registration here.

In addition to tax benefits and other favorable regulations for businesses, the big draw for corporations is Delaware’s Court of Chancery – the oldest court in the country specializing in resolving disputes involving the internal affairs of companies. Although other states have commercial courts, Delaware is unique in the expertise and excellent reputation of the Chancery.

Since the 1980s, the state has also been a global leader in financial services, with the world’s largest banks located here, particularly those operating in the credit card sector. More recently, with the rise of the digital economy, Delaware has also become home to many fintech startups as well as established players in this growing field.

Delaware also reacted quickly to a 1978 U.S. Supreme Court ruling that allowed banks to distribute credit cards across state lines, with interest rates based on the home state’s interest rate. Delaware was quick to seize the opportunity presented by this ruling, introducing the Financial Center Development Act in 1981, which offered businesses perks such as interest rate flexibility and fee plans. Many of the first affinity credit cards – those that link a holder’s finances to their personal and professional obligations – were issued in the state.

A third pillar of Delaware’s reputation as a place to do business is much newer – the cradle of fintech companies. With many major banks already based here, that was kind of a natural evolution. But it also has to do in part with the public-private alliance the state is known for, which encourages the growth of all kinds of technologies – medical, chemical, energy and now financial technology. A key symbol of that commitment can be seen on the University of Delaware’s STAR campus in Newark – the six-story FinTech Innovation Hub, which is set to officially open in 2023.

Created through a partnership between the Delaware Technology Park and Discover Bank and supported by both state and federal funding, the FinTech Innovation Hub is working hard to pool resources to help individuals and families build wealth and access credit fairly, as well as support entrepreneurs looking to grow Delaware’s financial services sector.

Best Egg, a successful fintech lending and credit provider formerly known as Marlette Funding, was founded in Delaware by two former employees of major banks. Meanwhile, Miami-based fintech company Novo, one of the fastest-growing private companies in the country, announced plans to open an office in Delaware in late 2023.

“Small businesses make up more than half of Delaware’s workforce – an incredible testament to the work Delaware has done to make starting and growing small businesses as accessible as possible,” said Grant Sahag, Novo’s vice president of operations, in a statement. “The Novo team is honored to be part of Delaware’s thriving small business community.”

In fact, Novo had opened an office at Stat International, a coworking space in Wilmington, in early 2023, highlighting that Delaware’s robust landscape of coworking spaces and incubators is another key draw for companies seeking support as they grow.

All of these initiatives have been critical to Delaware’s economy. A major study commissioned by the Delaware State Bar Association in 2019 found that “the legal industry contributes $2.4 billion to Delaware’s economy, with legal jobs contributing twice as much to the state’s gross domestic product as other major sectors.” In addition, it says, in 2018 alone, approximately 4,500 out-of-state attorneys applied for temporary admission to Delaware courts, generating $1.7 million in fees.

Equally important is the banking and financial services sector. The Delaware Prosperity Partnership reports that today 51,000 jobs—or 9% of the state’s employment—are attributable to the financial services sector.

All of this activity has created a haven for innovative businesses and supporting services. Here’s a look at four different organizations that have thrived and grown over the past few years – and helped others do the same.