Financial Services: Is Toronto the World’s Next FinTech Hub? - Vested

Financial Services: Is Toronto the World’s Next FinTech Hub?

As we slowly start to enter a post-pandemic world, Canada’s presence as a world-leading startup hub for FinTech businesses and financial services is only set to continue growing.

In 2017, a report revealed detailed insights about Toronto’s overwhelming potential as a FinTech leader thanks to various advantage points. These include the city’s position as a base for leading startup accelerators, technology investors, and talented professionals.

In this blog post, we’ll take a look at the key reasons why Toronto could be the world’s next FinTech hub and why it shouldn’t be sidelined or underestimated.

Toronto Hosts the Perfect FinTech Ecosystem

FinTech is a complex industry and one which relies heavily on a range of external factors for its success. Three of these key influences include:

❖ Talent development and innovation
❖ New services, lower prices and sustainability
❖ Protecting consumers and promoting innovation

Thanks to the growth of venture capital and backing from the right financial institutions, FinTech startups in Toronto are thriving.

Toronto is now North America’s second largest financial hub behind New York. With over 600 fintech firms, 12,000 financial services companies and nearly 380,000 financial services professionals, the city is booming. Keeping these figures in mind, it’s not hard to conclude that the ecosystem on offer in Toronto is obviously doing something right.

Toronto’s Financial Sector is Becoming More Diverse

Canada’s tech community is leading the drive for change when it comes to diversifying their industry. More than half of Toronto’s financial sector is made up of women, unlike other Western countries who are lagging behind on the equality front.

With greater diversity comes greater development opportunities, and at a faster rate too – just another reason why Toronto is set to be one of the next big leaders in FinTech startups and financial services.

AI is the Future of Financial Services

Traditional financial businesses like banking, accounting and legal counsels face significant challenges in the future thanks to their workforces which are led by administration and analytical roles. FinTech does exactly what it says on the tin, combining finance with technology to deliver results.

Toronto is home to the world’s largest concentration of AI startups – artificial intelligence being one of the main ways FinTech is revolutionizing the financial space. With Toronto’s AI capabilities and a mass of opportunity for startups to take financial services up a notch, it’s not surprising that jobs in the sector have grown by 25% in the last 5 years.

Despite the Canadian economy being slowed down by COVID-19, Toronto’s presence as a growing hub for FinTech startups hasn’t wavered. With careers in finance on the rise, a growing drive for diversity and a chance to take financial services to the next level, it’s really looking like Toronto will be the next Silicon Valley when it comes to thriving FinTech.

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