26 March 2019 11:30
Photo : Freepik
A report in the Toronto Finance International (TFI), written by Accenture and McMillan LLP, indicated that the ecosystem of technologies financial corridor Toronto-Kitchener-Waterloo offers “a significant opportunity” to increase its share of international transactions.
Published on march 25, the report, entitled Seizing the Opportunity : Building the Toronto Region into a Global Fintech Leader – Update 2019, is meant to be a follow-up to another study published in 2017. It aims to evaluate the progress of the ecosystem of financial technology in the Toronto area, through interviews with leaders and stakeholders within the government, as well as in the sectors of financial services and fintechs, says TFI.
The Toronto International Finance is a public-private partnership between canadian financial institutions and the government. He is responsible for the promotion of the economic center of Toronto to the international.
This year’s report shows that investment in fintech in the Toronto area “have increased significantly” over the past five years, from $ 24 million ($M) and eight transactions in 2013 at$ 221 Million and 25 transactions in 2018.
However, despite this growth, the share of investment in the fintechs in this region is lower than in other major financial centers, in terms of the number and size of transactions.
“We have a rate of investment growth the highest in the world, with a compound annual growth rate of 118 % since 2010,” says Jennifer Reynolds, president and chief executive officer of Toronto Finance International. “Although it is a investment base absolute much smaller than hubs in the world such as London, New York and San Francisco, we have the opportunity to take advantage of the second financial centre in North America, combined with the third technology cluster in importance, to become a world leader of fintechs. “
To encourage innovation and strengthen its position globally, the region should focus on three areas, advises the report. The first is ” the opening “, which means to create an environment ” that encourages innovation and collaboration among the partners of the ecosystem.”
The proximity between the participants to fintechs is the second area to develop. Thus, it is necessary to encourage “a more narrow and more common between participants of the ecosystem fintech in order to share and collaborate on ideas leading to technological improvements,” the report says.
The third area to develop is the worldwide reputation for enhancing the reputation of the Toronto region as an international hub of financial technology, in order to attract and retain young companies, talent and investment.
“The corridor Toronto-Kitchener-Waterloo is already characterized by its high concentration of incubators and accelerators, which is attractive for investors in financial technology, and we’re playing host to the first incubator university in the world : DMZ at theRyerson University , “says Vikas Shreedhar, managing director of financial services for Accenture in Canada. “It is possible to improve this position thanks to a closer collaboration between universities and industry in research and development, in addition to the promotion of a strong culture of innovation that distinguishes us from truly on the world stage. “