Report: Current State of the Financial Technology Ecosystem in the Toronto Region

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NCFA Blog | November 10, 2015

TorontoToronto may be the financial capital of Canada, but it's lacking what it takes to become a major "fintech" (financial technology) hub. On November 5, the Munk School of Global Affairs at the University of Toronto published a report titled “Current State of the Financial Technology Innovation Ecosystem in the Toronto Region”. The 27-page report benchmarks the current state of the fintech ecosystem in the GTA, provides an overview of fintech firm capabilities in the Greater Toronto Area and Kitchener-Waterloo regions and recommendations in the way forward.

"The Greater Toronto Area’s (GTA)  financial industry currently faces a growing number of challenges, chief among them is the rapid pace of information technology innovations (Fintech) that are altering the way financial services are delivered," states the report.

View: Fintech’s future is fast and furious

While the GTA has all the necessary components for a dynamic and thriving fintech ecosystem, such as a stable and secure financial services sector, growing technology industries and a highly educated talent pool, they are weakly linked. Canadian financial institutions have not been as effective in developing strong partnerships with fintech startups as other international financial hubs have been, such as New York or London.

“In New York and London, large numbers of fintech startups are working in close proximity to each other and are building effective relationships with financial institutions, but not in Toronto,” the report said.

Related: Your Input Required: 2015 Canadian Crowdfunding Platform Survey

The report, which was commissioned by the Toronto Financial Services Alliance (TFSA), states that although there is great potential in the region, there is no true fintech ecosystem and various factors are inhibiting its development – this comes at a cost to the region’s overall economic growth.

Download the full report --> here

The National Crowdfunding Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with both social and investment crowdfunding stakeholders across the country.  NCFA Canada provides education, research, leadership, support and networking opportunities to over 1300+ members and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding industry in Canada.  Learn more About Us or visit www.ncfacanada.org.

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