Financial Services in Toronto — Industry Profile

Toronto Financial Services Sector – Poised for Growth

Toronto’s financial service sector is a key driver of our local, provincial and national economy. In the highly competitive international financial services industry, the sector has the people, infrastructure, and skills to grow, attract new investment, and become a leading global financial services centre.

Toronto is the business and financial capital of Canada. It is the hub of Canadian commerce with a financial services infrastructure that has a reputation for safety, soundness and stability.

Toronto is home to the vast majority of Canada's largest financial services companies:

• 10 Domestic Banks, 18 Foreign Bank Subsidiaries and 21 Branches of Foreign Banks
• 129 Securities Firms, 60 Life Insurers including 2 of the largest 10 global life insurers and 130 P & C Insurance companies including 3 of the 4 largest property and casualty insurers in Canada
• Headquarters for the majority of the $700 billion investment management industry
• Pension management hub with 3 of Toronto’s public pension plans ranking among the top 60 in the world
• Growing host of Financial Services Technology Providers: CIBC Mellon, State Street, RBC Dexia, Citco, UBS, Northern Trust, Goldman Sachs, Merrill Lynch Technology. Roughly 20,000 employed in fund administration. 7 out of top 10 hedge fund administrators are located in Toronto.

As the employer of 232,200 people, Toronto’s financial services sector offers businesses in the Toronto Region a full range of financial services, and makes one of the largest contributions to the local economy.

• Between 1999 and 2009, the financial services sector added 69,000 jobs – a cumulative growth rate of 42 per cent, or 4.2 per cent per year on average.
• Toronto Region is home to 30 per cent of the Canadian financial services sector direct employment.
• More than 79 per cent of the financial services sector’s employees hold post-secondary credentials – well ahead of the regional industrial average.
• With roughly 7,200 members, Toronto also represents the 2nd largest CFA society after New York.
• The financial services sector leads all other service producing sectors by contributing 14 per cent to Toronto's Gross Domestic Product.

Toronto is where financial decisions are made, because Toronto is home to the leaders in Canada’s financial services industry.

Toronto is:

• Proud to have the largest WiFi zone in Canada. A total of six square kilometres of WiFi coverage is now available in Toronto's downtown core. For further information check out: www.onezone.ca
• Toronto is the third largest North American financial services centre after New York and Chicago and is Canada's financial and business capital.
• Home to 5 of the largest domestic banks – 3 rank among the world's top 25 based on market capitalization. Also home to 55 foreign bank subsidiaries/ branches and 119 securities firms. 89% of foreign banks have their head-offices within the Toronto CMA (80% in Toronto city).
• Headquarters for : 57% (60) of life insurance companies in Ontario – 2 of the largest 10 global life insurers, plus a third with significant operations in Toronto; 53% (130) of P&C insurers – including 3 of the 4 largest property and casualty insurers in Canada. Foreign companies are especially dominant.
• 80% of Investment Management/MF industry representing C$700 billion Assets under Management (AUM).
• 58 pension fund managers, 5 TO-based public pension plans with combined assets of over US$300 billion. Toronto ranks within global top 5 cities for global AUM
• Growing host of Financial Services Operations Providers: CIBC Mellon, State Street, RBC Dexia, Citco, UBS, Northern Trust, Goldman Sachs, Merrill Lynch Technology. Employs roughly 20,000 in fund administration.
• Hedge funds assets under management estimated at $32 billion.

Toronto’s financial services sector sustains many other industries as a leading consumer of resources, including law, accounting, information technology, education/training, and business services.

Between 1996 and 2008, the largest banks spent collectively $48.6 billion on technology, and $5.9 billion alone in 2008, with much of this investment concentrated in their key Toronto-based operations. In a previous 17-country study, Ernst & Young identified Toronto-based financial firms as global leaders in electronic banking and alternative service solutions.