FINANCIAL SERVICES
TORONTO’S
FINANCIAL SERVICES
SECTOR
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Toronto is the second largest and fastest growing
financial services centre in North America, and
an emerging financial technology hub.
Toronto is the business and financial capital of Canada, generating
20% of the country’s GDP. As a percentage of the national GDP, that’s
more than what New York, Boston, Chicago, Miami and San Francisco
combined contribute to the US economy.
Toronto – Canada’s Business Hub
• Offers expertise in:
- Head office and strategic planning functions
- Financial product development
#1
among major North
American financial
centres on tax
competitiveness
(KPMG 2014)
90%
of foreign bank
subsidiaries and
branches operating in
Canada are located
in Toronto
- Risk management and systems design
- Training and development
• Is the headquarters for Canada’s Top 6 accounting firms and
6 national law firms, all of which offer global services
• Has one in three accountants and lawyers specializing
in financial services
• Is home to accounting, legal, consulting and recruitment
firms with deep international expertise
4
of Canada’s largest
Public Pension Plans
headquartered in
Toronto, including the
Canada Pension Plan
Investment Board
(CPPIB)
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TORONTO’S FINANCIAL
SERVICES SECTOR:
SUPPORTED BY A STRONG, KNOWLEDGEABLE
WORKFORCE
•T
oronto is home to one
of the largest financial
services talent concentrations
in the Americas employing over
251,000 people across the
region. This represents 70% of
Ontario’s and 36% of Canada’s
sector employment
•T
he growth of Toronto’s financial sector has
outpaced all other industries both nationally and at
the regional level
•8
4% of financial services sector employees
hold post-secondary credentials versus 66% in all
other industries
•T
he financial services sector leads all other service
producing sectors by contributing nearly 20% to
Toronto’s share of the Gross Domestic Product
• Multilingual, multicultural, and diverse talent base
with over 180 languages spoken and over 51% of the
population foreign-born
A LEADING GLOBAL FINANCIAL CENTRE
Ranked in the Top 5
globally in PwC’s 2014
Cities of Opportunity
report on capitals of
finance, commerce
and culture
• Toronto ranks 2nd in North America and in the
Top 10 overall among international financial centres
(The Banker 2014)
• Ranked in the top 5 international finance centres by
foreign direct investment outflows (fDi Markets 2013)
• In the Top 10 on the 2015 Global Financial
Centres Index
Financial Services Employment as a
Share of Total Employment*
8.0%
Toronto Financial Services
Employment by Segment
8%
7%
6%
6.0%
6%
4.0%
2.0%
BANKING/DEPOSIT-TAKING 57%
INSURANCE 20%
0%
SECURITIES/INVESTMENT SERVICES 22%
TORONTO
NEW YORK
BOSTON
CHICAGO
* Total employment = All Industries for Toronto and Total
Non-farm Employment for U.S. Centres
Source: Statistics Canada Labour Force Survey/U.S. Bureau
of Labour Statistics, 2013
OTHER 1%
Source: City of Toronto, 2014
TORONTO’S VENTURE CAPITAL MARKET
Toronto ranks in the Top 3
cities Venture Capitalists
and Angels are most
interested in investing
– AngelList, 2014
Toronto is the locus of a vibrant start-up ecosystem that
helps entrepreneurs grow and succeed. It is the location
of the vast majority of Canada’s Venture Capital (VC) and
Private Equity firms. In 2014, VC and Private Equity
disbursements in Canada totalled over $40 billion, and
VC investment across Canada is up 33% since 2014. In
the first half of 2015, the top deals were investments in
Toronto-based companies.
STRONG FINTECH INNOVATION
• More than one quarter of all Foreign Direct
Investment (FDI) in financial services is related
to financial technology (Fintech)
•2
3,000 of Toronto’s 168,000+ technology-related
occupations are in the financial services sector
•D
ue to Toronto’s strong innovative climate, R&D
activity is greater here than in any other single
jurisdiction in Canada
•T
he new Financial Technology Cluster at the
MaRS Discovery District in Toronto connects the
financial services sector with startups developing
next generation technology in emerging payments,
financial services, peer-to-peer transactions,
alternative lending and crypto-currencies.
FIRST RMB TRADING HUB IN THE AMERICAS
Leveraging Toronto’s strengths as the country’s financial
services hub, Canada was chosen as the first Renminbi
(RMB) offshore trading centre in the Americas in November
2014. Our well-developed financial infrastructure, capital
markets and risk management expertise, strong economic
relationship with China, and large and growing Chinese
population positioned Toronto as the ideal destination for
an RMB trading hub.
Top Sectors For Canadian Venture
Capital Investment In 2014
AGRI-BUSINESS 2%
LIFE SCIENCES 22%
OTHER 3%
CLEANTECH 7%
TECHNOLOGY 66%
Source: Canada’s Venture Capital & Private Equity Association, 2015
Industrial and Commercial
Bank of China (ICBC)
Industrial and Commercial Bank of
China acquired Bank of East Asia
(Canada) in 2010, and officially
renamed it as Industrial and
Commercial Bank of China (Canada), or
ICBC Canada. From their offices in the
heart of Toronto’s financial district, ICBC
Canada has been working with its
affiliates in Canada and the USA to
establish a broad financial network in
North America. In November 2014,
ICBC Canada was designated as the
RMB clearing bank in Canada, the first
of its kind in the Americas. Being the
first RMB clearing bank in Toronto,
ICBC Canada will promote the crossborder RMB businesses in Canada
through the launch of a full range of
RMB products and services, further
strengthening the business relationship
between China and Canada.
“We wanted to be based among the
top law firms, investment banks,
brokerages, and alternative
investment managers in Canada,
which are all based in Toronto.
And, with the Ontario Securities
Commission based here as well,
the city is at the forefront of the
regulatory agenda in terms of laws
that govern asset management.
These are the people we work with.
It just made sense to be here.”
- Alex Chapmam, Managing Director (Canada),
Apex Fund Services
TORONTO REGION
IS HOME TO:
THE HEADQUARTERS OF THE 5 MAJOR
CANADIAN BANKS, WHICH RANK AMONG THE
50 LARGEST GLOBALLY
THE 4 TOP PUBLIC PENSION PLANS WITH
COMBINED ASSETS EXCEEDING $450 BILLION
2 OF THE 10 LARGEST GLOBAL
LIFE INSURERS AND 2 OF THE
3 LARGEST PROPERTY AND HEALTH
CASUALTY INSURERS
7 OF THE 10 LARGEST GLOBAL
ASSET SERVICING COMPANIES
THE MAJORITY OF CANADA’S MUTUAL
FUND INDUSTRY REPRESENTING
OVER $1.22 TRILLION IN ASSETS
UNDER MANAGEMENT
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KEY INDUSTRY LEADERS HEADQUARTERED IN THE TORONTO REGION:
INVEST TO SUCCEED. INVEST TORONTO. CONNECT NOW +1 416 981 3888 INVESTTORONTO.CA