A new survey has found that Toronto ranks fourth in the world as a leading FinTech center with the sector disrupting at such a pace that it is often difficult to make sense of the developments in the industry.
The survey, Trends and Innovations in Financial Services, [PDF] which was conducted last year received responses from over 300 financial services professionals during July and August around the world. Commissioned by the Toronto Financial Services Alliance (TFSA) and a leading U.K. think tank, Z/Yen, two online questionnaires were conducted in addition to desk research and informal interviews with experts in financial services.
The survey, which rated Toronto as the fourth leading global FinTech center of the future, looked at perceptions and views of international financial professionals regarding trends and innovations in the FinTech sector. For instance, it looked at Brexit, concern over data protection, regulatory pressures, increased transparency in asset and wealth management, increased volatility in oil and gas finance and the global slowdown in economic growth.
In a press release Janet Ecker, TFSA President and CEO said:
Toronto is the second largest financial centre in North America, and Ontario has the second largest concentration of technology companies. This unique ecosystem has created a perfect environment for a promising international FinTech hub to emerge.
This, however, is all good news for the Canadian nation.
Earlier this month it was reported that sector data had found that FinTech funding in Canada had reached an all-time high in 2016 in twenty years despite a decline in the U.S.
According to research conducted by PitchBook, funding reached $137.7 million last year compared to $21.8 million five years ago and just $7.3 million in 2000.
Not only that, but the Bank of Canada announced last June that it sees the potential in financial technology as it can help to ensure a smooth evolution to the financial system.
With such a positive start for Canada in the New Year, the country appears to be keen to continue the advance it has particularly on its U.S. counterpart.
According to Thomson Reuters from January to September 2016, $2.5 billion was invested in 446 deals. And yet, while the U.S. still managed to invest $4.27 billion Canada is demonstrating that it’s a nation that can provide an ideal environment for FinTech firms to establish themselves.
Furthermore, with Canada improving its position within the industry, this can only bode well for the digital currency bitcoin.
Featured image from Shutterstock.