By Phyllis Gurgevich
For many years, Nevadans have been debating how to diversify the state’s economy to make it more resilient to economic slowdowns. However, most experts would agree we still have a lot of work to do in this area.
We now have a little-known opportunity to take meaningful steps to advance this long-term goal for Nevada.
The seeds have been planted, and are now sprouting green shoots, of diversifying our economy through the banking, finance and insurance industries. The good news is we can start to enjoy some of the harvest and help the industry grow strong roots in our state.
Fintechs, the intersection of finance, banking and the latest technological advancements, have been looking at Nevada for a long time. However, with a focus on the gaming industry, we have not had the resources and workforce expertise needed to fully leverage this opportunity.
Nevada had to start by planting seeds, and much credit for that action goes to Dr. J. Daniel Chi, the chair of the Department of Finance at Lee Business School at UNLV. His vision elevated the finance department at the university and prepared our state’s graduates with the knowledge and expertise needed to grow the banking and finance industry.
Additionally, UNLV’s Kerestesi Center for Insurance and Risk Management, launched in 2023, has the mission to be the premier academic insurance and risk management program in the Western United States. They plan to accomplish this goal by supporting students, faculty, staff, and industry studying and working in the field.
The developing skilled workforce has not gone unnoticed by the industry. The banking industry, especially industrial banks and fintechs, have announced their intention to build the industry in our state. The industry even has the support of the Las Vegas Global Economic Alliance, which recently cited banking and finance as a target industry. Adding in the seeds planted in development of the insurance and risk management industry and this opportunity looks like a great bet for the Nevada economy.
Along with the potential for economic growth and diversification, these industries directly contribute to the economy with volunteerism, investments and workers who serve the community. As a highly regulated industry, much like gaming, reputation matters a great deal in the banking, finance and insurance industries.
Attracting a banking and finance industry hub to Nevada also could have an add-on effect of creating additional access to capital for businesses statewide. That could lead to new business ventures and further diversification opportunities.
With the seeds planted and green shoots beginning to show, attention now turns to the upcoming legislative session and the conditions needed to cultivate an industry ready and committed to helping diversify Nevada’s economy.
Success will depend on sound legislation that fosters responsible financial-industry growth while protecting Nevada consumers and businesses from unnecessary risk. New legislation may not be needed, but any new measures should strengthen—or at minimum preserve—those protections.
Phyllis Gurgevich is the president and chief executive officer of the statewide Nevada Bankers Association. For more information about the association, visit www.nvbankers.org.
