regional industry overview
Greater St. Louis
Financial Services &
Information Technology
1
Table of Contents
3 cluster definition
4 industry profile
6 concentration of employment
8 monthly earnings by industry
8 business profile
10 industry trends
11 employment & output forecast
13 talent profile
14 occupation forecast
14 talent trends
15 higher education & training
16 support industries
17 vendor & supplier opportunities
18 innovation
19 st. louis’ resources for enterpreneurs
20 sources
2
executive summary
“In today’s market place, global commerce has become a truly wired, integrated and symbiotic network of financial
exchanges, commodities markets, banking systems and corporate and individual traders functioning in real-time to buy,
sell and trade securities, goods and services and move money. Finance and technology are inexorably linked in terms of
how business is done in the modern world.” i
• Greater St. Louis Financial and Information Services Industry Cluster employs over 76,900 working in nearly
6,200 establishments. The Cluster’s dynamic presence of large corporations and small businesses is a growing
force in the region’s economy. The Cluster accounted for 6.7% of total employment in metro St. Louis in 2005
and 7.2% by mid-2011. Average annual industry wages range from $47,000 in other information services
to $109,400 in the securities, commodity contracts, investments sector.
• The securities brokerage sector is an important component of the industry cluster, employing nearly 7,400 in 2010.
The securities brokerage niche is a regional strength. With a location quotient of 2.65, the industry has a level
of concentration that is third in its peer group, only behind Boston and New York.
• Nationally, employment in the financial activities industry is forecast to grow at an annual rate of 1% through 2020.
Securities, commodity contracts, other financial investment, and related activities will account for the largest increase
in jobs in the financial activities industry. The nation’s growing number of retirees seeking advice on retirement options
will drive demand.
• Nationally, business and financial operations occupations are projected to grow by 17.3% through 2020,
indicating the occupational group is expected to grow faster than the industry. The computer and mathematical
occupational group is forecast to be the sixth-fastest-growing major occupational group. The computer systems
design and related services industry is driving the growth in this group with a projected growth of 3.9% per year.
• National and global trends will influence the Greater St. Louis Financial and Information Services Cluster in the
coming years. Industry regulation ramped up following the financial crisis and there will be a focus on implementing
many of the provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank).
• The expansion of global trade makes the U.S. financial services firms vulnerable to international economic conditions
and the uncertainty of European debt crises is likely to continue to concern the banking and securities industry.
Persistent weakness in U.S. housing market continues to dampen the economic recovery which is leading banks
to consider structural changes in their business models and seek alternative sources of income.
The Greater St. Louis Financial Forum members will describe roadblocks to cluster growth, identify niches with the
greatest potential for growth, and develop strategies to accelerate growth. The Forum will articulate a regional value
proposition for the cluster, develop messaging themes, and identify companies to target for business recruitment.
3
This brief provides background information for the greater St. Louis financial forum’s work to link, leverage, and align
regional factors to promote firm and regional growth.
From 1999 to 2010, the Chamber’s economic development initiative identified Financial Services and Information
Technology as two separate industry clusters. In 2009, Market Street Services was engaged to refine and focus the
cluster approach for the Chamber’s 2011-2015 strategic plan. The cluster definition was modified to capitalize on not
only the headquarters presence of several major investment firms, but also the increasingly integrated information
component of financial services operations. Market Street concludes that economic development efforts can leverage
financial services companies need to integrate advanced technology in their local operations and identify additional opportunities to attract and grow information services companies with expertise in designing and maintaining complex, robust
data management systems.
“In today’s market place, global commerce has become a truly wired, integrated and symbiotic network of individual
and corporate traders, commodities markets, banking systems, and financial exchanges functioning in real-time
to buy, sell and trade securities, goods and services and move money. Finance and technology are inexorably
linked in terms of how business is done in the modern world”1
cluster definition
Clusters are groups of industries that are closely linked by common product markets, labor pools, similar technology, value
chains, and/or other economic ties. A cluster description includes industry composition, occupational profile and supporting
infrastructure. The following graphic illustrates these components of the financial and information services cluster.
Figure 1 Cluster Definition
FINANCIAL SERVICES INDUSTRY
FINANCE & INSURANCE • NAICS 52
CENTRAL BANKS
NAICS 521
CREDIT
INTERMEDIATION
& RELATED
NAICS 522
SECURITIES,
COMMODITIES,
& INVESTMENTS
NAICS 523
INSURANCE
CARRIERS & OTHER
NAICS 524
Commercial Banks,
Savings Banks,
Credit Unions, Other
Securities,
Commodoties
Brokerage,
& Exchange
Insurance Carriers,
Insurance Brokerage
MANAGEMENT OF COMPANIES & ENTERPRISES • NAICS 55
OFFICES OF BANK HOLDING COMPANIES
NAICS 551111
FUNDS, TRUSTS, &
OTHER FINANCIAL
VEHICLES
NAICS 525
4
Figure 1 Cluster Definition (cont’d)
INFORMATION SUPPORT
INFORMATION • NAICS 54
DATA PROCESSING,
HOSTING, &
RELATED SERVICES
NAICS 518
PROFESSIONAL & TECHNICAL SERVICES • NAICS 54
OTHER INFORMATION SERVICES
NAICS 519
Computer Systems Design
& Related Services
NAICS 5415
News, Libraries, Internet
Programming Services,
Systems Design Services
OCCUPATIONS
HIGHER
$80,000 & UP
MID LEVEL
$50,000 TO $79,999
ENTRY LEVEL
$20,000 TO $49,999
Financial managers, Computer systems
analysts, software engineers, securities,
commodities, and financial sales agents
Accountants, auditors, computer
programmers, insurance sales agents,
systems administrators,
claims adjusters, examiners
Customer services reps, bookkeeping,
accounting/audition clerks, computer
support specialist, bill and account
collectors, tellers
INFRASTRUCTURE
RESEARCH
UNIVERSITIES
EDUCATION &
TRAINING
UTILITIES &
INFRASTRUCTURE
OTHER
PROFESSIONAL &
TECHNICAL SERVICES
PROFESSIONAL
ASSOCIATIONS
Washington University,
Saint Louis University,
SIU-E, UMSL
30 Four Year
Universities,
20 Two Year
Universities,
200,000+
Total Enrollment
Telecommunications,
Real Estate
Accounting &
Bookkeeping,
Real Estate,
Legal Services,
Market Research
Financial Planning
Association of Greater
STL, Society of
Financial Service
Professionals,
American Society of
Women Accountants
industry profile
Current employment data for a broadly defined cluster includes the financial activities super-sector, which is comprised of
finance, insurance, real estate renting and leasing; and the information super-sector, which includes telecommunications.
Figure 2 shows that from 2000 through 2011 employment in financial activities have outperformed total employment growth,
while employment in the information sector has lagged. Overall, employment and information employment declined from
2000 to 2011, while employment increased in the financial activities super sector over the same period.
5
Figure 2 Employment Trends in Financial Activities and Information Services Super-Sector St. Louis MSA 2000-2001
2000 = 100
1.10
1.08
1.06
1.04
1.02
1.00
0.98
0.96
0.94
0.92
0.90
2000
2001
2002
2003
2004
2005
Nonfarm Employment
2006
2007
Financial Activities
2008
2009
2010
2011
Information
Source: BLS
dynamic presence of large financial and information services
corporations employ tens of thousands of regional workers 2
Using a targeted approach to identify and drill down the important niches within the narrowly defined Financial & Information Services Cluster, the Quarterly Census of Employment and Wages series from the Bureau of Labor Statistics shows
that the cluster accounts for over 76,900 jobs, in nearly 6,200 establishments throughout the region. The cluster’s average
annual wages range from $47,000 in the other information services industry to a $109,400 in the securities, investments,
and commodity contracts, industry. The cluster has been a growing force in the region’s economy, accounting for 6.7%
of total employment in 2005 and 7.2% by mid-2011.
Table 1 Industry Composition First Half 2011
Industry
Establishments
Jobs
Avg. Annual Wages
521
Central Bank*
1
826
N/A
522
Credit Intermediation & Related Services
1,568
27,216
N/A
523
Securities, Commodity Contracts, Investments
968
10,502
$109.422
524
Insurance Carriers & Related Services
2,187
19,787
$69,745
525
Funds, Trusts, & Other Financial Vehicles
54
390
$63,503
Finance & Insurance
4,778
58,721
N/A
Offices of Bank Holding Companies
12
233
$72,010
518
Data Processing, Hosting, & Related Services
115
5,700
$118,868
519
Other Information Services
72
333
$46,954
Computer Systems Design & Related Services
1,181
11,928
$78,305
Cluster Total
6,158
79,915
N/A
NAICS
52
551111
5415
Source: BLS & St. Louis Federal Reserve Bank
6
The credit intermediation and related activities industry, which includes banking, savings, loan and credit unions, credit
card issuing and sale financing as well as mortgage brokers, with employment over 27,000, accounts for the largest
share, 34.5%, of the cluster. More than a quarter of employment, 25.7%, is found in the insurance industry, which is
followed by computer systems design at 15.5%, as well as investments and securities commodity contracts at 13.7%
Figure 3 Employment Distribution St. Louis MSA 1st Half 2011
1.1%
15.5%
Central Bank
Computer systems design
& related services
0.4%
Other information
services
35.4%
Credit intermediation
& related services
7.4%
Data processing, hosting
& related services
0.3%
Offices of bank
holding companies
0.5%
Funds, trusts & other
financial vehicles
25.7%
Insurance carriers &
related activities
13.7%
Securities, commodity
contracts, investments
Source: BLS
concentration of employment
The composition of the region’s overall employment base is very similar to the U.S. as a whole. The region’s financial
activities and information super-sectors have location quotients of about 1, indicating that these sectors have the same
concentration of employment in the regional economy as in the national economy. A measure of concentration, location
quotient, represents the ratio of an industry’s share of employment in a given area to that industry’s share of employment
in the overall U.S. economy. When an industry’s employment concentration is greater than the nation, local firms typically
produce more goods and services than the local market demands and therefore, are exporting goods and services. This
type of specialized concentration drives wealth creation within the region.
Table 2 shows a high concentration of employment in the central banking industry, due to the presence of the
Federal Reserve Bank of St. Louis. The investment, securities, and commodity contacts industry, offices of bank holding
companies, and data processing, hosting and related services industry also show above aver-age concentrations, with
location quotients of 1.2 or higher.
An important focus of the Greater St Louis Financial Forum is the securities brokerage industry which employed nearly
7,400 in 2010; Figure 4 illustrates the region’s strength in the securities brokerage niche. In 2010, St. Louis had the third
highest location quotient of 26 peer markets. Only New York with a location quotient of 4.40 and Boston’s 2.75 exceed
7
St. Louis, with a location quotient of 2.65. Further, from 2007 to 2010, the region experienced employment growth in the
securities brokerage sector, while many metros experienced job losses. The region’s location quotient increased from
1.25 in 2007 to 2.65 in 2010; during the 2007 to 2010 period both location quotients slipped in Boston and New York.
Figure 4 shows the 2010 location quotient along the Y-axis and the change in location quotient from 2007 to 2010 on the
X-axis. The bubbles are sized according to the number of employees in the local securities brokerage industry.3
Figure 4 Securities Brokerage Employment ( NAICS 52312) Location Quotient and Change in Location Quotient
St. Louis MSA and Selected Competitive Metros 2007 – 2010
5.0
4.0
Location Quotient 2010
New York
3.0
Boston
St. Louis
Phoenix
2.0
Minneapolis
Cincinnati
1.0
Los Angeles
0.0
(1.50)
Tampa
Denver
San Francisco Miami
Indianapolis
Dallas
Kansas City
Charlotte
Seattle
San Diego
Philadelphia
Chicago
Atlanta
Pittsburgh
Houston Research Triangle
Washington DC
Baltimore
Riverside
Detroit
(1.00)
(0.50)
-
0.50
1.00
1.50
2.00
-1.0
Change in Location Quotient 2007 – 2010
Sources: BLS & St. Louis Regional Chamber
Table 2 2010 Location Quotients
Industry
LQ
521
Central Bank*
3.31
522
Credit Intermediation & Related Services
1.07
NAICS
DRILLING DOWN FURTHER, 3 SUB INDUSTRIES
HAVE LOCATION QUOTIENTS OVER 2.0
REAL ESTATE CREDIT • 2.31
523
Securities, Commodity Contracts, Investments
1.20
SECURITIES BROKERAGE • 2.65
524
Insurance Carriers & Related Services
0.96
OTHER DIRECT INSURANCE • 5.71
525
Funds, Trusts, & Other Financial Vehicles
N/A
Offices of Bank Holding Companies
1.52
518
Data Processing, Hosting, & Related Services
2.33
519
Other Information Services
N/A
Computer Systems Design & Related Services
0.80
551111
5415
Sources: BLS, St. Louis Federal Reserve Bank, & St. Louis Regional Chamber
8
monthly earnings by industry
One important goal for economic development is increasing community wealth by focusing on industries that provide
strong and competitive wages. Growing the financial and information services cluster provide potential for wage growth.
Earnings for employees in the financial and information services cluster are 1.2 to 2.6 times higher than the average
for all industries in the region, and 1.7 to 2.5 times higher for new hires wages in the cluster. Average earnings have
grown at a faster pace in the finance and information industries than in all industries with only two subsector exceptions;
the insurance industry and funds and trusts industry. Earnings growth in data processing and hosting services was
particularly strong.
employees in the financial and information services cluster earn
up to 2.6 times more than the regional average for industries
Table 3 Average Earnings for Select Industries Financial and Information Services Cluster Missouri Portion St. Louis MSA
2010 Average
ALL EMPLOYEES
NAICS
Industry
All Industries
52
Finance & Insurance
521
Monetary Authorities • Central Banks
522
Credit Intermediation & Related Activities
523
Securities, Commodity Contracts, Investments
524
Insurance Carriers & Related Activities
525
Funds, Trusts, & Other Financial Vehicles
51
518
Information
Data Processing, Hosting, & Related Services
NEW HIRES
Quarterly
Employment
Monthly
Earnings
Earnings
Growth %
Quarterly
Employment
Monthly
Earnings
905,449
$3,863
2.4%
57,881
$2,192
47,674
$5,458
4.2%
2,359
$3,948
753
$6,286
4.3%
17
$4,803
19,630
$4,464
7.6%
1,175
$3,820
6,975
$8,400
6.7%
292
$4,595
19,891
$5,441
0.8%
864
$3,843
424
$5,561
-1.2%
11
$3,348
21,689
$6,796
11.1%
782
$3,966
5,527
$10,082
6.9%
179
$5,391
Source: U.S. Census Bureau
business profile
Four major financial services leaders anchor the cluster: St. Louis is home to Edward Jones, Scottrade, Stifel Nicolaus,
& Well Fargo Advisors; all have added employment and out-performed the market during a period of extreme turmoil.
The integration of the financial services and information services can be seen in the region’s major employers including
Thomson Reuters and MasterCard’s Global Operations & Technology Center, as well as specialized service providers
such as Savvis. Savvis provides infrastructure services to the financial industry and currently serves all of the top 200
financial services firms as clients. Savvis hosts trading platforms, risk management systems and provides connectivity
to trading venues and sources of liquidity. Nearly 20,000 employees work in over 2,000 insurance related firms in the
9
St. Louis region. Many of them work in the offices of individual brokers representing nearly every major insurance
carrier, but there are some insurance companies with a larger presence in the region. For example, St. Louis is the world
headquarters for Reinsurance Group of America, Inc., the largest reinsurer in the nation and Fireman’s Fund Insurance
has 370 customer service and claims employees in St. Louis. Health insurance firms are a component of the insurance
industry with companies such as Centene, Coventry HealthCare, and WellPoint. These companies are an important link
between the Financial and Information Services Cluster and the Health Science and Services Cluster. Health insurance
companies will participate in the Health Science and Services Leadership Council.
Figure 5 St. Louis MSA Major Employers by Primary Business Sector
FINANCE & INSURANCE • NAICS 52
CENTRAL BANKS
NAICS 521
CREDIT
INTERMEDIATION &
RELATED
NAICS 522
SECURITIES,
COMMODITIES, &
INVESTMENTS
NAICS 523
INSURANCE
CARRIERS & OTHER
NAICS 524
FUNDS, TRUSTS, &
OTHER FINANCIAL
VEHICLES
St. Louis Federal
Reserve Bank
Citimortgage,
Scottrade Bank, Stifel
Bank & Trust, Emerson
Finance Corp., U.S.
Bank, Wells Fargo
Home Mortgage,
Missouri Higher
Education Loan
Wells Fargo Advisors,
Edward Jones,
Stifel Nicolaus & Co.,
Scottrade
WellPoint, GMAC,
United Health Care,
Reinsurance Group
of America,
Centene Corp.,
Coventry HealthCare
The Realty Association
Fund, NISA Investment
Advisors, New England
Financial & Met Life
MANAGEMENT OF COMPANIES & ENTERPRISES • NAICS 55
MID LEVEL
OFFICES OF BANK HOLDING COMPANIES
NAICS 551111
Reliance Bancshares, Magna Data Services, Business Bancshares, Warren County Bancshares
INFORMATION • NAICS 54
PROFESSIONAL & TECHNICAL SERVICES • NAICS 54
HIGHER
DATA PROCESSING, HOSTING,
& RELATED SCIENCES
NAICS 518
MID LEVEL
OTHER INFORMATION SERVICES
NAICS 519
ENTRY LEVEL
COMPUTER SYSTEMS DESIGN
& RELATED SERVICES
NAICS 5415
SAVVIS, Connectria Corp., RJIS IBM,
Thomson Reuters, MasterCard
Network 1 Communications Corp.,
Cellcast Technologies, Petros
Technology Internet Publishing
Kelly Mitchell Group, Amdocs, Pericient,
Dougherty Business School, Maverick
Technologies, Rose International
10
employment & output forecast
According to 10-year national forecasts from the Bureau of Labor Statistics5, employment in the financial activities industry
is forecast to grow at an annual rate of 1% from 2010 to 2020. While this rate of growth is somewhat lower than the 1.3%
projected annual growth rate for total employment, it is well above the employment growth rate from the 2000 to 2010,
when the sector experienced 0.1% loss in employment each year.
The securities, commodity contracts, and other financial investments sectors are projected to add over 201,400 jobs,
which is the largest increase in jobs in the financial activities sector through 2020. This increase contrasts with the loss
of 3,600 jobs during the previous period (2000-2010). Factors that will drive growth include the movement of many
members of the baby boom generation into retirement in the coming years. Many retirees will seek professional
investment advice to manage their retirement accounts. Younger workers seeking advice on retirement options will also
boost demand.
Employment in computer systems design and related services is projected to grow at 3.9% per year, making this industry
one of the fastest growing. The demand for increased network and computer systems security as well as the health care
industry’s ongoing move to electronic records will drive employment growth in this industry. Software publishers will be
adding jobs at an annual rate of 3.1%
The information sector is projected to have the fastest growth in real output among all majors sectors through 2020;
however employment in the information sector is expected to grow at an annual rate of 0.5%. One reason for the slow
growth is tied to declining employment in the newspaper, periodical book, and directory publishers industry. Another
reason is advances in technology that increase productivity without the need for additional employees. For example, real
output in the data processing, hosting, related services and other information services industry, which not only provides
the infrastructure for hosting and data processing but also offers search engines, is projected to grow by an annual rate
of 6.1%, making it one of the fastest growing industries. However, employment in this industry is projected to increase by
only 0.8% per year. While this is an improvement over the 2000 to 2010 period where the industry declined by 2.1% per
year, projected employment in 2020 will still be below the 2000 level.
industry trends
The effects of the great recession continue to influence the industry. Industry regulation ramped up following the financial
crisis and there will be a focus on implementing many of the provisions in the Dodd-Frank Wall Street Reform and
Consumer Protection Act in 2012. The expansion of global trade makes the United States financial services firms vulnerable
to International economic conditions so the uncertainty of European debt crises is likely to continue to concern the banking and securities industry. Persistent weakness in the U.S. housing market continues to dampen the economic recovery
which is leading banks to consider structural changes in their business models and seek alternative sources of income.
financial & information services industries are predicted
to experience long term regional and national growth 4
11
employment & output forecast
“The region has developed a relatively large workforce involved in the provision of computer and technology services.
This strength should be leveraged in the marketing of the region as an attractive destination to future prospects. The
occupational profile of the cluster indicates that the region is likely best poised to support growth in a broad range of
technology services. The development of a regional talent pipeline to support the growth of personal financial advisors
and other financial specialists will be important for ensuring that cannibalization of existing occupational employment is
minimized as financial service grow within the region.”6
Although firms within financial and information services can be described as a cluster, individuals in many financial or
information services occupations are employed across all sectors of the St. Louis Metro economy. Some of these
occupations are sector specifics (found almost exclusively within cluster firms) and others are cross cutting in that they
serve a a wide range of industries.
The region has a strong mathematical and computer occupations workforce; 9 of the 13 occupations have location
quotients above 1.2. Database administrators have a LQ of 1.76. The region’s wage levels are very competitive; 11 of the
13 occupations have local median wages at or below the U.S. median.
Tables 4 & 5 delineate the cluster’s 35 various occupations; in 2010, they accounted for a workforce of over 146,600.
The majority of these occupations, 71%, are business and financial operations, management, or office and administrative
support occupations; the remaining 29% are computer and mathematical occupations. Three occupations: accounting
and auditors; budget analysts; and brokerage clerks have above average concentrations, with location quotients above
1.3. 15 out of the 22 occupations have median wages at or below the U.S. median.
Table 4 Computer & Mathematical Occupations 2010
SOC CODE
Sources: BLS
St. Louis
Location
St. Louis
National
STL Wages as
Employment Quotient Median Wage Median Wage Share of U.S.
Occupation Title
43,200
1.3
$73,210
$73,720
99%
N/A
N/A
$96,460
$100,660
96%
Computer Systems Analysts
7,920
1.64
$75,430
$77,740
97%
15-1131
Computer Programmers
4,600
1.39
$74,290
$71,380
104%
15-1132
Software Developers, Applications
7,280
1.47
$85,430
$87,790
97%
15-1133
Software Developers, Systems Software
2,770
0.74
$87,450
$94,180
93%
15-1141
Database Administrators
1,820
1.76
$72,680
$73,490
99%
15-1142
Network & Computer Systems Administrators*
4,680
1.42
$69,230
$69,160
100%
15-1150
Computer Support Specialists
7,220
1.26
$44,520
$46,260
96%
15-1179
Information Security Analysts, Computer
Network Architects, & Web Developers
2,920
1.21
$81,760
$75,660
108%
15-1799
All Other Computer Occupations
2,910
1.60
$77,990
$79,660
98%
15-2011
Actuaries
230
1.25
$86,320
$87,560
98%
15-2031
Operations Research Analysts
490
0.79
$68,970
$70,960
97%
15-2041
Statisticians
270
1.17
$65,520
$72,830
90%
15-0000
Mathematical & Computer Occupations
15-1111
Computer & Information Research Scientists
15-1121
TOTAL 43,110
12
high concentrations of occupations and employment occur in
the financial and information services industry sectors 7
Table 5 Selected Management, Business & Financial Operations, and Office & Administrative Support Occupations 2010
SOC CODE
St. Louis
Location
St. Louis
National
STL Wages as
Employment Quotient Median Wage Median Wage Share of U.S.
Occupation Title
11-2021
Marketing Managers
1,570
0.96
$110,050
$112,800
98%
11-3031
Financial Managers
3,550
0.74
$108,400
$103,910
104%
13-0000
Business & Financial Operations Occupations
64,090
1.06
$58,480
$60,670
96%
13-1031
Claims Adjusters, Examiners, & Investigators
2,740
1.05
$54,100
$58,620
92%
13-1111
Management Analysts
3,200
0.60
$73,400
$78,160
94%
13-1199
Business Operations Specialists, All Other*
9,840
1.00
$61,510
$62,450
98%
13-2011
Accountants & Auditors
14,120
1.332
$58,450
$61,690
95%
13-2031
Budget Analysts
940
1.635
$66,970
$68,200
98%
13-2041
Credit Analysts
620
1.00
$62,990
$58,850
107%
13-2051
Financial Analysts
1,880
0.86
$71,810
$74,350
97%
13-2052
Personal Finance Advisors
1,410
0.91
$70,040
$64,750
108%
13-2053
Insurance Underwriters
940
1.002
$57,980
$59,290
98%
13-2061
Financial Examiners
340
1.232
$76,520
$74,940
102%
13-2072
Loan Officers
2,570
0.91
$56,680
$56,490
100%
13-2081
Tax Examiners, Collectors, & Revenue Agents
310
0.45
$68,820
$49,360
139%
13-2082
Tax Preparers
450
0.79
$34,690
$30,990
112%
13-2099
Financial Specialists, All Other
1,150
0.74
$61,690
$60,980
101%
41-1011
First-Line Supervisors of Retail Sales Workers
10,850
0.936
$34,320
$35,820
96%
41-3031
Securities, Commodities, & Financial Sales Agents
3,110
1.13
$51,860
$70,190
74%
43-3031
Bookkeeping, Accounting, & Auditing Clerks
15,140
0.914
$34,090
$34,030
100%
Tellers
4,930
0.89
$23,490
$24,100
97%
43-4011
Brokerage Clerks
1,430
2.50
$37,050
$40,160
92%
43-4051
Customer Service Representatives
22,440
1.05
$30,330
$30,460
100%
43-30741
TOTAL 146,640
Sources: BLS
Source: BLS
COM P UTER R ESEAR CH SCIENTISTS
SOF T WAR E D EVELOPERS, SYSTEMS SOF TWARE
ACT U ARIES
SOF T WAR E D EVELOPERS, AP PLICATION S
WEB D EVEL OPER S, N ETWOR K AR CHITECTS
COM P UTER OCCUP ATIONS, AL L OT HER
F IN AN CIAL EXAMINERS
COM P UTER SYSTEMS AN ALYSTS
COM P UTER P R OGRAMMER S
M AN AG EMENT AN ALYSTS
COM P UTER AN D M ATHEMATICAL OCCUPATIONS
D AT ABASE ADMINISTRAT ORS
F IN AN CIAL AN ALYSTS
COM P UTER SYSTEMS AD MINIST RATORS
OP ER ATIONS R ESEAR CH AN ALYSTS
T AX EXAM INERS & R EVENUE AG ENTS
BU D G ET AN ALYSTS
ST AT ISTICIANS
CR ED IT AN ALYSTS
F IN AN CIAL SP ECIALIST S, AL L OT HER
BU SINESS OP ER ATIONS SP ECIALISTS & OT HER
F IN AN CIAL OP ERATIONS OCCUPATIONS
ACCOU N TAN TS AN D AU DITORS
IN SU R AN CE U NDERWRITER S
L OAN OF F ICERS
CL AIM S AD JUSTERS, EXAMIN ER S, IN VESTIGATORS
SECU R ITIES, COM MODITIES, F IN AN CIAL AG ENT S
COM P UTER SU PPORT SP ECIALISTS
BR OKER AGE CL ER KS
T AX P R EP AR ER S
SU P ER VISORS OF R ETAIL SALES WOR KER S
BOOKKEEP ING, ACCOUNTING, AU DITING CL ERKS
CU ST OMER SERVICE R EPR ESEN TATIVES
T EL L ER S
13
talent profile
Figure 8 shows the St. Louis median annual wages for occupations and the local range from 10 to 90 percentiles. While
the median wage for securities, commodities, and financial services sales agents is $51,900 wages range from the bottom 10 percentile of $21,200 to the top 90 percentile of $164,400. This range reflects the high earning potential of these
commission based occupations.
Figure 8 Median Annual Wage by Occupational Group • St. Louis MSA 2010
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$-
14
occupation forecast
According to the U.S. Bureau of Labor Statistics8 2010 to 2020 national occupation forecast, business and financial
occupations are projected to grow more rapidly than overall occupation growth. This growth includes some recovery from
losses between 2006 and 2010. Business and financial operations occupations are projected to grow by 17.3% from
2010 to 2020. This group includes business operations specialists - such as management analysts, human resources
workers, and buyers and purchasing agents, and financial specialists, such as accountants and auditors, loan officers,
and financial analysts. Business and financial operations workers are found in industries throughout the economy, but
the largest numbers are found in government, professional and business services, as well as the insurance and finance
industries. In these industries, business and financial operations occupations are projected to account for a larger share of
industry employment in 2020 than in 2010, indicating the occupational group is expected to grow faster than the industry.
Computer and mathematical occupations are projected to grow by 22.0% from 2010 to 2020, making the computer and
mathematical occupational group the sixth-fastest-growing major occupational group. However, because it is a relatively
small group, it ranks only 12th (out of 22 groups) in the projected number of new jobs between 2010 and 2020. Computer
occupations are much larger than mathematical occupations, accounting for 3.4 million of the total 3.5 million jobs in
computer and mathematical occupations in 2010. Employment in computer occupations also is projected to grow faster
than mathematical occupations, with growth rates of 22.1% & 16.7%, respectively. Although computer occupations are
found throughout the economy, fast growth in the computer systems design and related services industry is driving this
group’s growth; this industry accounted for just over 20 percent of all jobs in computer occupations in 2010, but will
generate more than half of all new computer jobs from 2010 to 2020.
talent trends
Today, a number of external trends are influencing both finance and IT, with implication for the talent that is needed now
and in the future. The followings trends were identified in a 2011 Chamber analysis of talent in the St. Louis region9
• The digitization of finance is moving the industry toward a paperless future; credit cards, debit cards, pre-paid
benefits cards, and smart phones are presently the preferred tools to move money, but many of these will soon
be replaced by other technologies.
• The financial services industry has a more diverse customer base than ever before, spanning from young people
raised with digital tools; older people with paper checkbooks and fixed incomes; immigrants with different cultural
expectations; start-up companies, mid-size firms, large corporations; and every-one in between.
• Financial and information transactions are exposed to increased security risks from hackers and data hijackers
who operate independently and through cross-national organizations; as a result computer security specialists
are in high demand.
• The automation of many financial service functions, such as deposits, check cashing, and some auditing
tasks have lessened the need for lower-skill occupations & increased the demand for individuals with
credentialed specializations.
15
• A critical shift is underway in information services, away from unique in-house information systems toward shared
and leased services, such as those provided in “The Cloud.” The Cloud allows businesses and individuals to access
applications, content, and computing power remotely through a variety of Internet-connected digital devices.
• Restructuring during the Recession saw an increase in mergers and acquisitions in the banking and financial
services industry, meaning that there are fewer purely local enterprises and many talent management decisions
are made outside the local area.
• The financial sector is globally connected, linked through complex IT networks that transcend geopolitical
boundaries. Events in one part of the world have ramifications for what happens in others - for better or for worse.
• Customers demand convenient access to financial services at the community level, as a result, partnerships
have formed between depository institutions and retail outlets, such as banks, grocery stores, malls, etc.,
as well as the entry of non-financial services firms into the finance business, such as Wal-Mart, General Motors,
and Home Depot.
• There exists a tighter and more complexly intertwining regulatory environment, which now in flux, subsequently
increases demand for talented people who can understand, monitor, and advise on issues surrounding
regulatory compliance.
Many of these trends signal increased demand for people with the most up-to-date technical skills but having the right
technical skills will not be sufficient to launch a successful career in the financial and information services cluster today.
Looking beyond the tumultuous times of the recent Recession, “forward-looking firms recognize that a different set of
skills, smart deployment of talent and the realignment of compensation structures will be critical to their ability to address
the demands of this new world financial order…. Companies are looking to ascertain whether they have enough people
with the necessary balance of innovation, risk, compliance, and relationship skills, and gearing their training and recruitment to bridging any gaps.”10
higher education & training
The nature of work in these economic clusters has been and will continue to be transformed by technology and
innovation. Businesses increasingly require a skilled, technically-proficient, and continuously-learning workforce.
Examples of new and emerging occupations in the financial and information services industry include:
• Business intelligence analysts
• Network designers
• Risk management specialists
A Chamber analysis of 41 occupations throughout the Financial and Information Services Cluster found that 30 are
considered high growth occupations by the Missouri Economic Research and Information Center (MERIC); 80% of these
jobs will require Bachelor’s Degrees or higher.
Education is an important aspect of St. Louis’ talent development; the region has a higher level of college graduates
than the U.S., many of St. Louis’ competitor markets have significantly higher proportions of college graduates. St. Louis
16
enjoys a wealth of resources within higher education; over 200,000 students were enrolled in colleges and universities in
the St. Louis region and nearly 36,500 degrees were awarded in the 2010-2011 academic year. Washington University,
Saint Louis University, University of Missouri- St. Louis, and Southern Illinois University Edwardsville have all received national recognition for entrepreneurship and business programs.
there is a strong supply of training programs at several local
universities focusing on the careers demanded by the cluster 11
Figure 9 Bachelor’s Degrees or Higher • Population Ages 25-64 •
St. Louis MSA • Peer MSAS • U.S. • 2010 Figure 10 Most Significant Source
of Education & Training
Financial & Information Services
HIGH GROWTH OCCUPATIONS
Washington, D.C.
Boston
San Francisco
Research Triangle
Minneapolis
Denver
New York
Seattle
Baltimore
Chicago
Philadelphia
Atlanta
Kansas City
San Diego
Charlotte
Pittsburgh
Indianapolis
St. Louis
Dallas
Los Angeles
Cincinnati
Miami
U.S.
Detroit
Houston
Tampa
Phoenix
Riverside
80%
Bachelor’s degree
or higher
13%
Vocational or
other training
7%
Two-year degree
ALL OCCUPATIONS
59%
Bachelor’s degree
or higher
32%
Vocational or
other training
0.0%
0.0%
10.0%
10.0%
20.0%
20.0%
30.0%
30.0%
40.0%
40.0%
50.0%
0.5
7%
Two-year degree
Sources: U.S. Census Bureau, American Community Survey 2010
support industries
The presence of a network of companies providing specialized support is a critical element of regional clusters. Two
examples of support industries are law and accounting firms. Table 6 shows the while the major securities brokerage firms
do not use the same accounting firms, there is overlap in the law firms used.
17
Table 6
ACCOUNTING FIRMS
LAW FIRMS
Firms
Selected Cluster Clients
Firms
Selected Cluster Clients
Deloitte
Scottrade
Bryan Cave
Wells Fargo Advisors • Stifel Nicolaus
PricewaterhouseCoopers
Edward Jones
Greensfelder, Hemker & Gale
Edward Jones
KPMG LLP
Wells Fargo
Lewis, Rice & Fingersh
Bank of America • WellPoint
Ernst & Young
Stifel Nicolaus
Polsinelli Shughart
Heartland Bank • St. John’s Bank
SNR Denton
Wells Fargo Bank • Stifel Nicolaus • PNC Bank
Senniger Powers
Edward Jones
Sources: St. Louis Business Journal Book of Lists 2012 & Hoovers
vendor & supplier opportunities
The spending patterns of regional financial services companies and information technologies firms provide important
opportunities for local vendors and suppliers. Cluster firms are consumers of St. Louis-based goods and services
including law, accounting, education & training, and business services. Tables 7 presents the estimated share of local
company budgets devoted to operations categories & an estimate of how much of those purchases are made within the
region. This information can inform discussions about opportunities for cluster firms to increase purchasing from local
companies to grow the regional economy.
Table 7 Local Spending Patterns for Regional Goods & Services
Goods & Services Categories
Local Share
of Budget
Local Purchase
Coefficient
Securities, Commodity Contracts, Investments, & Related Services
28.4%
83.3%
Telecommunications
12.3%
99.9%
Real Estate Buying & Selling, Leasing, Managing, & Related Services
7.9%
69.4%
Nondepository Credit Intermediation & Related Services
5.4%
94.6%
Advertising & Related Services
4.5%
74.0%
Management, Scientific, & Technical Consulting Services
3.9%
53.9%
Legal Services
3.6%
91.7%
Monetary Authorities & Depository Credit Intermediation Services
2.9%
88.5%
Facilities Management & Other Computer Related Services
2.7%
94.5%
Employment services
2.4%
95.5%
Accounting, Tax preparation, Bookkeeping, & Payroll Services
2.0%
97.4%
Management of Companies & Enterprises
1.9%
99.9%
Computer Systems Design Services
1.6%
91.3%
Insurance Agencies, Brokerages, & Related Services
1.6%
99.8%
Insurance
1.3%
78.6%
Products & Services of Fed Government Enterprises
1.1%
82.8%
All Other Professional, Scientific, & Technical Services
1.0%
94.7%
Services to Buildings & Dwellings
1.0%
99.9%
Automotive Equipment Rental & Leasing Services
0.8%
86.5%
Business Support Services
0.8%
99.9%
Sources: MIG, Inc. & IMPLAN System
18
innovation
In addition to growing established firms, innovation and high growth start-up businesses are also important components
of a targeted cluster approach to economic development. Recent activity in the region is bringing new resources to
support business start-ups in the region.
One new resource for technology based startups is TEC @ Railroad Exchange Building (T-REx), a low-cost, flexible-lease
space oriented to the nascent IT startup entrepreneurs.
Other resources for entrepreneurs include:
• Olin Cup: Washington University’s business plan competition
• Capital Innovators: 3 month intense mentoring program
• Arch Grants: Downtown St. Louis business plan competition
• St. Louis Regional Business Plan Competition: Sponsored by the St. Louis County Economic Council
and Edward Jones
• Angel Investors: St. Louis Arch Angels and Billiken Angels
While the information component of the cluster is the focus of many of these resources, there is a new attention to
innovation in the financial services sector with the creation of FinServe Tech Angels in 2011. This angel investor group
is comprised of financial services executives and entrepreneurs who invest in early stage financial services information
companies.
FinServe Tech Angels offers an efficient option for high-net worth individuals, with a financial services background,
to diversify their portfolios by investing in start-up companies. As such, the organization seeks out the top financial
services related start-up companies from across the country, and brings them to St. Louis to present before its members.
Individual members make their own investment decisions regarding each company that presents before the group; and
the organization assists members with due diligence and deal syndication.
Patents are a measure of innovation. Figure 11 shows that data processing patent activity has increased from 46 patents
in 2006 to 74 patents issued in 2010. The data processing patents related to financial, business practice, management,
or cost/price determination have grown at an increasing rate over this period. Three patents were issued in 2006 and by
2010 18 patents were issued.
80
Figure 11 Patents Issued by Technology
Class Data Processing • St. Louis MSA
70
18
60
8
50
3
40
9
6
30
20
56
43
39
43
47
10
0
2006
Source: U.S. Patent and Trademark Office
2007
Other data processing and information patents
2008
2009
2010
Financial, business practice, management, or cost/price determination
19
st. louis’ resources for entrepreneurs
This summary of quantitative information about the financial and information services cluster serves as the starting point
for a business-led effort to link, leverage, and align regional factors to promote regional growth. Forum members will
work with RCGA staff to describe roadblocks to cluster growth, identify niches with the greatest potential for growth, and
develop strategies to accelerate growth. The Greater St. Louis Financial Forum will articulate a regional value proposition
for the cluster, develop branding and messaging strategies, and identify companies to target for business recruitment.
The Forum will also work with RCGA staff to identify measures unique to the financial and information services cluster to
monitor progress. The Forum will maintain conversations across clusters to insure that shared concerns are addressed
comprehensively.
All the Leadership Council’s work points to a set of common goals: robust employment opportunities for residents and
newcomers alike, a vibrant and growing business base, ever increasing community wealth, and continued improvement
in a range of social factors closely aligned with employment and income.
20
sources
1
“Regional Cluster Analysis Cluster Action Plan Greater Saint Louis, MO-IL”, Market Street Services, Inc, July 27, 2009, p. 110.
2
Ibid. p 102.
3
Note The QCEW is subject to non-economic code changes and changes in industry classification, therefore, time series should
be interpreted with care and confirmed with local market knowledge.
4
5
“Regional Cluster Analysis Cluster Action Plan Greater Saint Louis, MO-IL”, Market Street Services, Inc, July 27, 2009, p. 102.
“Employment Outlook: 2010-2020 Industry Employment and Output Projections to 2020” in Monthly Labor Review Industry,
U.S. Bureau of Labor Statistics, January 2012.
6
“Regional Cluster Analysis Cluster Action Plan Greater Saint Louis, MO-IL”, Market Street Services, Inc, July 27, 2009, p. 105.
7
“Regional Cluster Analysis Cluster Action Plan Greater Saint Louis, MO-IL”, Market Street Services, Inc, July 27, 2009, p. 102.
8
“Employment Outlook: 2010-2020 Occupational Employment Projections to 2020” in Monthly Labor Review Industry,
U.S. Bureau of Labor Statistics, January 2012.
9
“Talent: The Future of Metro St. Louis in the Knowledge Economy”, St. Louis RCGA, p 28.
10
“Re-engineering the organization: Managing talent in the day after tomorrow”, PricewaterhouseCoopers, pgs 3 – 7, February 2009.
11
“Regional Cluster Analysis Cluster Action Plan Greater Saint Louis, MO-IL”, Market Street Services, Inc, July 27, 2009, p. 102.
i
Market Street Services
Financial Services
St. Louis Regional Chamber
Strategy Statement
We are a broad community of leaders united for economic prosperity throughout the entire
St. Louis bi-state region. In fact, our aspiration is for St. Louis to be one of the Top 10 U.S.
regions in prosperity. Our one purpose is to inspire a greater St. Louis. Together, we will make
St. Louis a more attractive place for people to live, work and invest. We will win on today’s
regional strengths in focused economic clusters. We will champion a better tomorrow
through greater educational attainment, economic inclusion, innovation and entrepreneurship.
One Metropolitan Square
211 North Broadway, Suite 1300
St. Louis, MO 63102
www.stregionalchamber.com
fax 314.206.3244
phone 314.231.5555