America's Financial Hotspots: Ranking the Top Cities.

What makes a city financially thriving? 

Is it just the income, employment, or credit score of its residents? 

Or is it something more holistic, such as the well-being, resilience, and opportunity that the city offers? 

How can we measure and compare the financial health of different cities across the country?

These are some of the questions that we explore in this report. 

We have ranked the top 5 most financially thriving cities in America based on three dimensions: managing daily finances, being resilient to shocks, and pursuing opportunity. 

We have also looked at how these cities perform in terms of economic growth, income inequality, and population dynamics.

Our ranking reveals some surprising and interesting findings about which cities are leading the way in financial thriving and which ones are falling behind. Let's go.

1. NEW YORK

New York City is considered the top financial city in America and the world, according to the latest Global Financial Centres Index (GFCI), which ranks the competitiveness of financial centers based on surveys and 150 factors. 

But what makes New York so successful and attractive in the global financial landscape? 

A look at the state's economy and history reveals some of the reasons behind its remarkable performance. 

New York has the third-largest economy in the U.S. and the twelfth largest in the world, with a gross state product (GSP) of $2.0 trillion in 2022-Q2. 

Its economy is diverse and dynamic, driven by six major industries: financial services, healthcare, professional and business services, retail trade, manufacturing, and education. 

The financial services sector is the largest and most influential industry in New York, generating $429 billion for the state's GSP in 2020. 

It is home to the New York Stock Exchange (NYSE), the world's most influential securities exchange, as well as hundreds of banks, hedge funds, insurance companies, and fintech firms. 

New York's financial history dates back to the colonial era, when it was a major trading port for goods such as fur, wheat, and tobacco. 

It also hosted the first public securities auction in 1792, which led to the creation of the Buttonwood Agreement, a precursor to the NYSE (New York Stock Exhange).

New York's financial prominence grew over time as it became a destination for immigrants, merchants, entrepreneurs, and financiers who shaped the development of various industries and markets. 

New York's financial resilience was tested by various challenges such as wars, depressions, attacks, and pandemics. 

However, it managed to overcome these difficulties and adapt to changing market conditions by fostering innovation, diversity, and regulation. 

According to a report by EY and the Urban Land Institute, New York ranks first among the world’s most attractive global business districts for 2020. 

The report assesses and compares the business districts based on five factors: ability to attract and retain talent, proximity to markets, customers, and partners, quality of the urban environment, local and global influence, and bespoke and innovative real estate supply. 

New York excels in all these factors, especially in its local and global influence, which reflects its status as a world city and a center of media, culture, politics, and finance.

The other sectors also contribute to New York's economic strength and attractiveness. 

The healthcare sector is the largest employer in New York state with more than 1.3 million workers providing essential services to nearly 20 million residents. 

It also contributes to the state's innovation and research capacity with many world-class hospitals and medical schools. 

The professional and business services sector is a diverse and dynamic field that supports other industries and sectors with specialized skills and expertise.

2. SAN FRANCISCO

San Francisco is among top 5 financial cities in America, It ranks fifth globally and second nationally in the GFCI, behind New York.

But what makes San Francisco so successful and attractive in the American financial landscape? 

A look at the city's economy and history reveals some of the reasons behind its remarkable performance. 

San Francisco has a strong and diverse economy, with a gross metro product of $254.9 billion in 2019. 

It is the sixth largest economy in the U.S. and a significant actor in the global economy. 

It has three main industries that power its economic growth: tourism, technology, and financial services. 

Tourism is an essential industry for San Francisco, as it attracts millions of visitors and billions of dollars to the city every year. 

San Francisco has many attractions that celebrate its diversity and culture, such as the Golden Gate Bridge, Alcatraz Island, Fisherman's Wharf, Chinatown, and the cable cars. 

Tourism also creates many jobs and businesses in the city. 

Technology is a major industry for San Francisco, as it hosts many leading companies and startups in various sectors such as e-commerce, social media, cloud computing, and fintech. 

San Francisco has a rich history of innovation and social movements that influenced the development of personal computing and the internet. 

San Francisco also has a dynamic venture capital and startup ecosystem, with access to talent, funding, and networks. 

Financial services is a large and influential industry for San Francisco, as it generates $429 billion for the state's GSP in 2020.

It is home to the Pacific Exchange, one of the four U.S. options exchanges, as well as hundreds of banks, hedge funds, insurance companies, and fintech firms.

San Francisco has a long history of trade and commerce that dates back to the California Gold Rush. 

It also has a history of prominent financiers who founded Bank of America and other institutions.

This city has shown resilience and adaptability in facing various challenges such as earthquakes,fires,recessions,and pandemics. 

The city's economy has been experiencing significant expansion in recent years, with a robust recovery from the pandemic, and its future looks bright. 

Its infrastructure, diverse population, and business-friendly environment make it an ideal place for businesses to thrive, and it is likely to remain a significant financial hub in the future.

3. BOSTON

Boston, located in Massachusetts, is more than just the state's capital and largest city – it's also the cultural and financial hub of the New England region. 

With a diverse population, a rich history, and a reputation for innovation, Boston is one of the top leaders in education, healthcare, biotechnology, and finance.

As of 2020, Boston had a population of about 676,000 people, making it the 24th most populous city in the United States. 

The greater metropolitan area, known as Greater Boston, is home to over 4.9 million people and is the 10th largest metro area in the country.

Founded in 1630, Boston has played an important role in many historical events, including the American Revolution, the abolitionist movement, the Industrial Revolution, and the development of American democracy. 

Today, the city is home to some of the most prestigious universities and colleges in the world, including Harvard University, Massachusetts Institute of Technology (MIT), Boston University, Boston College, Northeastern University, and Tufts University.

These institutions attract thousands of students, researchers, and entrepreneurs from around the world, creating a diverse intellectual community.

Boston is also known for its world-class medical facilities, including Massachusetts General Hospital, Brigham and Women's Hospital, Beth Israel Deaconess Medical Center, and Boston Children's Hospital.

The city is a major financial center, with a strong presence in banking, insurance, asset management, venture capital, private equity, and fintech. 

Boston hosts the headquarters or regional offices of some of the largest financial institutions in the world, such as Fidelity Investments, State Street Corporation, Bank of America, Santander Bank, John Hancock Financial Services, Liberty Mutual Insurance Group, Bain Capital, Wellington Management Company, and MassMutual Financial Group. 

The city also has a thriving startup ecosystem, with many innovative companies in sectors such as biotech, clean energy, robotics, artificial intelligence, cybersecurity, and e-commerce.

Boston is home to the Boston Stock Exchange (BSE), one of the oldest stock exchanges in America, which offers trading in stocks and options on various platforms. 

The city also has a significant role in the gold and silver markets, as it is one of the five international bullion centers recognized by the London Bullion Market Association (LBMA).

In addition to its impressive professional and financial credentials, Boston offers a vibrant cultural scene and a range of attractions and activities for both residents and visitors. 

Some of the city's most popular landmarks include Fenway Park, home of the Boston Red Sox baseball team, Faneuil Hall Marketplace, a historic shopping and dining destination, the Freedom Trail, a walking tour of 16 historic sites, the Museum of Fine Arts, one of the largest art museums in America, Boston Common, the oldest public park in America, and Quincy Market, a historic food hall.

Overall, Boston is a dynamic and prosperous city that offers numerous opportunities for finance professionals and enthusiasts. 

Its blend of history and modern innovation creates a unique and exciting environment for both business and leisure.

4. CHICAGO

Chicago, the largest city in the Midwest region and the third-largest city in the United States, is an attractive destination for businesspeople who want to do business in America. 

With a strong and diversified economy, the city is a major center of commerce, industry, transportation, and culture. 

It is also a significant financial hub, with a diverse and dynamic financial sector that serves the local, national, and global markets.

The city hosts two of the leading futures exchanges in the world: the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT). 

The city also has a strong presence of banking, insurance, asset management, hedge fund, private equity, and fintech firms. 

Some of the largest financial institutions based or operating in Chicago include JPMorgan Chase, Bank of America, Northern Trust Corporation, Allstate Corporation, CNA Financial Corporation, Morningstar Inc., Guggenheim Partners LLC., Citadel LLC., and Discover Financial Services. 

Chicago offers a diverse and dynamic business and finance job market that covers various sectors and functions. 

World Business Chicago (WBC), an economic development agency that works with businesses to grow and expand in Chicago, has identified several benefits of doing business in the city. 

Firstly, the city offers access to a large consumer market of over 9.4 million people in the metropolitan area and over 50 million people within a day’s drive.

This means that businesses can tap into a broad customer base and reach a vast number of potential customers.

Secondly, Chicago's international airport system serves over 200 destinations worldwide, providing access to a global network of trade partners and investors.

This makes it easier for businesses to expand their operations beyond the city and even the country.

Thirdly, the city is home to over 90 colleges and universities that produce over 150,000 graduates annually. 

This means that businesses can tap into a diverse pool of talent with a wide range of skills and expertise. 

Fourthly, Chicago offers a competitive cost of doing business that is lower than other major cities such as New York City or Los Angeles. 

This is beneficial for businesses that want to reduce their operating costs and increase their profit margins.

Lastly, Chicago has a vibrant innovation ecosystem that supports entrepreneurship and research through various programs and initiatives. 

This makes it easier for businesses to access resources and support to help them innovate and grow.

Despite these benefits, there are also some challenges of doing business in Chicago. 

For example, the effects of deindustrialization and globalization have reduced manufacturing jobs and increased competition from other regions. 

Additionally, the city has to cope with social and economic disparities among different neighborhoods and communities and address environmental and infrastructural issues that affect the quality of life and sustainability of the city.

Chicago has also had to deal with a relatively high cost of living, especially for taxes and utilities.

However, despite these challenges, Chicago is a dynamic and prosperous city that offers many opportunities for businesspeople who want to do business in America. 

The city's historical legacy combined with its modern innovation creates a unique and exciting environment for business and leisure. 

With its strategic location, well-developed infrastructure, skilled and diverse workforce, and supportive business environment, Chicago is an excellent destination for businesses that want to succeed and grow.

5. HOUSTON

Houston, the largest city in Texas, is a thriving metropolis with a diverse economy that includes various industries such as energy, healthcare, aerospace, and manufacturing. 

It is known for being a hub for the energy industry, with numerous global oil and gas companies headquartered there. 

Recently, Houston has also emerged as a significant financial center, with a growing number of financial institutions and investment firms calling it home.

The energy sector dominates Houston's economy, and its companies include ExxonMobil, ConocoPhillips, Phillips 66, Sysco, and Waste Management. 

These firms contribute to the city's wealth and innovation, as well as its trade and logistics capabilities.

Houston's financial sector is highly competitive and includes over 200 banks and credit unions. 

JPMorgan Chase, Bank of America, Wells Fargo, BBVA USA, and Amegy Bank are among the city's notable financial institutions. 

Additionally, Houston has a growing number of investment firms and private equity firms such as EnCap Investments, Tudor Investment Corporation, Quantum Energy Partners, Main Street Capital Corporation, and Lionstone Investments that provide capital and expertise to various businesses and sectors in Houston and beyond.

One of Houston's advantages is its favorable tax environment, with no state income tax and relatively low property taxes compared to other major U.S. cities.

This makes Houston an attractive destination for businesses and professionals looking to relocate or expand.

Houston's location on the Gulf of Mexico and access to major transportation routes make it a key hub for trade and commerce. 

The city's port is one of the busiest in the United States, handling a large volume of international trade, supporting over 3.2 million jobs nationwide, and generating over $800 billion in economic impact. 

Additionally, Houston has two international airports connecting the city to over 180 destinations worldwide.

Houston ranks favorably among other financial cities in the U.S., such as New York City, San Francisco Bay Area, Chicago, Boston, and Los Angeles. 

According to a report by New World Wealth, Houston ranked 14th among the world's wealthiest cities for 2022, with a total private wealth of USD 1.1 trillion.

Houston also ranked third among U.S. metro areas for corporate relocation and expansion in 2020, with 76 projects creating over 11,000 jobs. 

The city has a large number of Fortune 500 companies headquartered there, as well as a vibrant startup ecosystem fostering innovation and entrepreneurship.

Houston is a top financial city that offers many opportunities for businesses and professionals. 

Its diverse economy, favorable tax environment, and location on the Gulf of Mexico make it an attractive destination for trade and commerce. 

Houston's financial sector is competitive, with numerous financial institutions and investment firms providing capital and expertise to various businesses and sectors in Houston and beyond.

To summarize, the top financial cities in America are not just centers for finance, but also hubs for innovation, diversity, and culture. 

They offer a range of advantages to businesses and professionals in the financial sector, such as a strong economy, well-developed financial sectors, favorable tax environments, low costs of living, and strategic locations. 

Moreover, these cities provide a high quality of life and a wealth of experiences to residents and visitors alike. 

As these cities continue to grow and innovate, they will remain at the forefront of the financial industry, attracting top talent and businesses from around the world.