University of Utah President Taylor Randall unveiled a $65 million donor initiative on Monday set to seed a new off-campus education center, business incubator and venture investment fund aiming to substantially elevate student opportunities in the emerging financial technology sector.

The U., in partnership with the Stena Foundation and founders Steve and Jana Smith, will create the Stena Center for Financial Technology. The foundation has orchestrated total funds of up to $65 million over the next 10 years to support the center, including industry-sponsored labs, a startup incubator, venture funds and fintech-focused degrees and certificates. Reinvestments from the venture funds are ultimately expected to fund the center in perpetuity.

For the uninitiated, fintech, a portmanteau combining financial and technology refers to technology aiming to upgrade and automate the delivery of financial services. Innovations in the sector are changing consumer financial services as well as a broad array of categories including investment management, business-to-business transactions, digital payment platforms, cryptocurrencies and much more.

Randall said the new effort is driven by both industry need and student interest in financial services technology innovation that is advancing quickly in the $5 trillion global financial services market. The University of Utah programming will provide real-world pathways to degree programs that reflect unmet demand and open new opportunities for student-led fintech business startups.

“These are industry-driven degrees,” Randall said. “The Stena Center for Financial Technology provides the ability to accelerate and incubate important advances in financial technology innovation and businesses that will continue to propel the fintech industry forward and cement Utah as a center of excellence.”

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University of Utah President Taylor Randall and Stena Foundation founder Steve Smith talk about the newly announced Stena Center for Financial Technology at Rice-Eccles Stadium at the University of Utah on Monday, Jan. 30, 2023. | Scott G Winterton, Deseret News

Randall said the new fintech center will collaborate across multiple academic units at the University of Utah and the school recently began offering undergraduate minors in financial technology. As the Stena Center evolves, those offerings will expand to include full undergraduate and master’s degrees in the field.

“We clearly see huge value and demand from students for hybrid degrees that cross disciplines,” Randall said. “This effort involves a very purposeful joining of law, business and engineering. And that’s something coming, frankly, directly from students in all three of these disciplines.”

Stena Foundation co-founder Steve Smith is a Utah entrepreneur and veteran of fintech disruption and is the co-founder and former CEO of Finicity. Finicity was acquired by Mastercard in a 2020 deal worth nearly $1 billion. Smith is also the current co-chair of the Financial Data Exchange, a nonprofit working to establish fintech industry standards.

Smith said current degree pathways aren’t matching up well with the unique needs of the fintech industry.

“We started having conversations with the U. about how can we deliver students with a degree that they can put to work right away,” Smith said. “That turned into ‘Well, let’s see if we can figure out program specifics for this. What about an incubator for student based startups?’ The U. has been so progressive on this side of the equation with its entrepreneurial programs out of Lassonde and the Master of Business Creation program.”

Stena Foundation founder Steve Smith is presented with a football helmet after he and University of Utah President Taylor Randall had a discussion about the newly announced Stena Center for Financial Technology, at a conference at Rice-Eccles Stadium at the University of Utah on Monday, Jan. 30, 2023. | Scott G Winterton, Deseret News

Smith also noted Utah has built an outsize presence in the realm of emerging fintech innovations and said he believes the state is “easily among the top five” when it comes to regions developing and commercializing new fintech advancements.

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“What’s super exciting for me is Utah has emerged as one of the real global hubs of fintech,” Smith said. “This progressive center, in alignment with its strategic partners, will build on the success of the fintech community in Utah and will become a major hub for ongoing financial technology innovation and real economic impact.”

According to the University of Utah, the fintechXstudio will start with an annual cohort of 10 student entrepreneurs and businesses working on financial technology innovation. Students will have access to expert faculty, office space, industry mentors, technology solutions partners, curated courses, prototyping tools and technology, venture capital and the university’s global education programs. Each year, the venture fund will invest a total of at least $1 million in 10 or more student-led fintech companies. A large portion of the carry earnings from those investments will be reinvested into the center.

Stena Center executive director Ryan Christiansen said the new programming is set to push Utah to the front of the line when it comes to fintech innovation output.

“The Stena Center will blend Utah’s broad fintech industry experience with U. students’ energy and creativity,” Christiansen said in a press statement. “This unique partnership will connect financial technology leaders’ workforce skills and experience with students’ passion and ideas — accelerating innovation to place Utah at the forefront of global fintech excellence.”

University of Utah President Taylor Randall listens as he and Stena Foundation founder Steve Smith talk about the newly announced Stena Center for Financial Technology at a conference at Rice-Eccles Stadium at the University of Utah on Monday, Jan. 30, 2023. | Scott G Winterton, Deseret News
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