Editor’s note: Joshira Maduro is a research analyst at LendingTree in Charlotte. Startup Spotlight is part of WRAL TechWire’s Startup Monday lineup which also includes updates to our exclusive Startup Guide, our list of regional tech meetups, a review of last week’s headlines, and weekly calendars of events for the Triangle, the state, and a look ahead to next month.

CHARLOTTE – When you hear the words “tech startup,” you might naturally think of traditional tech hubs such as San Francisco, New York City or even Austin, Texas. But tech is booming in North Carolina, employing thousands of people and helping to raise the financial fitness level of many local families. 

This growing industry has the potential to create an increasing number of jobs and help local professionals upskill in order to meet the increasing demand for specialized jobs. Here’s how tech startups can be a positive force for good in the financial lives of so many residents in the Carolinas. 

1. Hiring and inspiring local talent

In 2019 alone, workers earned $30.4 billion in North Carolina — tech jobs accounted for 11% of those earnings. 

Spoonflower, a local tech heavyweight, has 13 years of experience hiring local talent. They’ve grown well past the start up stage, recently announcing a $225 million acquisition by Shutterfly. Through their years of growth, they’ve learned how competitive the local job market is. 

“You have to prioritize the recruiting experience and make sure that when you’re posting a role, you’re thinking about the individual you’re trying to attract on the other side and tailor that for the skillset you’re hiring for,” said Jessica Lesesky, chief revenue officer at Spoonflower. 

But Lesesky said it’s about more than just hiring local talent — she believes a major piece of the puzzle is in educating students at every level about their work options and just what it takes to attain a fulfilling role. 

“There is so much knowledge and opportunity to partner with the local universities and high schools and technical colleges here,” she said. Before COVID-19, the company ran a field trip program so that students could see the production facilities and learn about different jobs within the company. That initiative has now pivoted online. 

“I think when people at a young age can get exposed to companies and what they’re doing, they start to fall in love with their city all over again, which gets them invested in wanting to stay here and give back,” she said, adding, “I think there is a big opportunity to teach people about industries, trade and prepare them for their next chapter.”  

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2. Encouraging professional development

In a 2021 report of the most financially fit cities in the United States, Raleigh, N.C., was the only city outside the midwest or west to make the top five. As the research triangle and home to many tech startups, it’s no surprise that Raleigh would be in the top five, but what might be surprising is that Charlotte, N.C., a central financial hub, found itself on the bottom half of that list. With innovation rising in the tech world, there should be more focus on bridging the gap in financial literacy — helping people to earn more and better manage their finances.

One of the ways this can be achieved is through professional development. Pew research shows that 47% of employees say extra training made the difference for them when it came to advancing in their current company and earning a salary increase. 

At Spoonflower, employees can complete internal internships with other business units to expand their on-the-job learning. Plus, each employee receives a stipend to continue developing their formal education through classes and additional designations. “If you have other programs or a master’s that you’re doing, we have a budget set aside for furthering education. We’re big on people investing in themselves and their careers,” said Lesesky.

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3. Connecting communities

Sometimes, creating more financially sound communities is core to what tech companies do — sometimes it’s a bonus. For K4Connect, establishing stronger links between seniors, friends and family and professional caregivers is their main mission. This just so happens to be an excellent tool for combating senior financial abuse. 

Elder financial abuse costs Americans $2.6 billion to $36.5 billion annually. That’s a huge range, and part of why it’s so hard to get accurate numbers on senior financial abuse is the lack of reporting, whether due to shame on the elder’s part or simply not knowing how or having the awareness that the abuse is occuring. 

K4Connect’s suite of communication tools makes it easy for seniors in long-term care to connect with their families and caregivers. “Any time you’re communicating with your family more, you’re talking about what’s going on in their lives, the more you can make sure that no one’s being taken advantage of; that there’s not someone preying on them in a way that can be detrimental,” said Cindy Phillips, managing partner and chief of staff at K4Connect.

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This connection can also help residents become more aware of ongoing scams targeted at seniors. “Our platform allows that information to get shared more quickly in a community. Any time you hear about a scam that is hitting our community, we would want to put the word out.”

Since seniors are often at risk of financial abuse when procuring services — home repairs, grocery delivery, ride sharing — the company is also developing a new feature that will aggregate services in one marketplace. Thoroughly vetting services, and creating a solution where seniors only have to input their financial information once, can help reduce financial risks. 

“As we grow, we’re thinking, ‘How do we protect people and give them peace of mind?’” said Phillips.

Many tech companies might already be developing the tools to build financially fit communities without realizing it. You don’t have to be a fintech start up to help with finances. K4Connect proves that all companies that touch consumers can play a role in developing financial literacy. 

4. Creating awareness

With so many new companies launching that are aimed at helping consumers with their finances, it can be hard to keep track of them all or know who to trust. In North Carolina alone, there are several innovative companies like Wallify, that tracks and helps manage your online subscriptions, and Zogo, which is developing a new way to approach small dollar loans. 

“There are so many people who want to do something with your money and people are very skeptical about using an online resource,” said Kris Kovacs, president and CEO of Constellation, a platform aimed at giving credit unions and community banks access to fintech innovation and vice versa. 

“That can be the power of a fintech partnering with a financial institution,” he said. “If my credit union or community bank brings the technology to me, I’m far more likely to trust them and use that service. Part of it is using institutions as trust brokers to introduce these services to consumers.”

Creating connections between all the resources available to consumers — for example, between your credit union and a new app — can make it easier to use innovations that will make a notable difference in how you manage your finances. “Online banking looks exactly the same functionally as it did 20 years ago. It hasn’t changed,” Kovacs said. 

Since credit utilization ratio contributes to 30% of your credit score, finding ways to help locals understand credit and its impact on their future is key to developing more financial fitness in the community. “I really do think young people today are growing up in an entirely different world and are saying ‘I don’t trust this credit card debt thing as much as other people in the past have.’ I think one of the important ways to help them is around financial goal setting,” said Kovacs.

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Bottom line

Tech companies of all kinds have a role to play in developing the financial fitness of the community. While some tech leaders focus specifically on finances, even those whose interests seem unrelated can help by developing their employees, hiring locally and innovating to participate more fully in the financial life of the community. 

And for those looking to take advantage of the tech boom and move to North Carolina, you might learn something about money that could change your life through the many tech companies that are helping consumers at every stage of the journey.