Location, tech talent, and competitive business environment: Toronto has all the ingredients to create a world-class Fintech cluster.
More than 13,000 Tech companies in the Toronto region, from startups to global technology leaders, deliver hardware, software, and communications services to the North American and global financial services industry. A recent Deloitte report ranked Canada has the 4th largest cybersecurity hub in terms of deal flow with Ontario leading the country.
The Toronto region is the Canadian headquarters for some of the world’s leading wireless and telecom companies, including Cisco, Ericsson and Alcatel, and for world-leading software and data analytics companies such as HP, IBM and Microsoft.Together, these companies contribute to Ontario’s nation-leading ICT sector, which accounts for 65% of the sector’s R&D and 66% of its exports in Canada.
With 50% of the country’s approximate 60,000 Fintech employees, the Toronto region offers one of the most highly educated workforces in the developed world. While more than 80% of Toronto’s financial services workers have post-secondary degrees and accreditations, the city’s 61 technology related programs train more than 5,000 graduates a year.
Toronto’s talent pipeline is continually replenished by Ontario’s 44 colleges and universities that produce approximately 38,000 skilled graduates in science, technology, engineering and mathematics each year. They also offer more than 200 cooperative education programs in ICT fields, including the University of Waterloo’s program, the largest in the world, involving 19,000 students and 6,300 employers.
Fintech companies doing business in Toronto benefit from one of the lowest software development costs in the industrialized world. Running a software development centre in Toronto is much more affordable than in London and New York City which is one of the many reasons why the Canadian software industry has grown 23% from 2009 to 2014. Based on the combined costs of labour, utilities, telecommunications and property, the cost of operating a data centre is also more affordable in Toronto than other jurisdictions.
Toronto’s Fintech sector can also take advantage of a broadly based system of R&D tax credits from the federal and provincial governments. These can reduce the gross cost of C$100 in R&D to C$42 to C$54 depending on the size and type of company.