FinTech

Grow your FinTech startup in a world-class tech ecosystem in Ontario

Global
FinTech Industry

A country of early adopters

The latest report from Boston Consulting Group (BCG) and QED Investors stated that by 2030, revenue from the financial technology sector will increase from US $245 billion to US $1.5 trillion. Currently, FinTech is 2% of the US $12.5 trillion in global financial services revenue. By 2030, this is projected to rise to 7%.

Payments made up 25% of FinTech equity funding of US $120 billion since the 2000s and are projected to continue growing to US $520 billion, fuelled by cross-border transactions and real-time payment innovations.

The next FinTech wave is expected to be led by B2B2X, anticipated to reach US $440 billion in revenues by 2030 with a 25% CAGR. B2B FinTech targeting small businesses is expected to achieve US $285 billion in revenue, growing at a 32% CAGR.

Canadian 
PropTech Industry

Driven by sustainability, affordability and AI

Canadian FinTech startups have long been leaders in the global landscape. Canada already has over 1200 FinTech companies. Many leading global FinTech brands have originated here, including renowned names such as Shopify, Wave, Freshbooks, Dapper Labs, Wealthsimple, Payfirma, Quandl, Cryptologic, and Mogo.

Canadians also have a reputation for being early adopters of new technologies, from ATMs to digital banking. In Canada, 90% of consumer payment value is through non-cash methods, and the mobile payments sector in Canada is projected to grow at a CAGR of 9.1%.

In 2021, FinTech investment in Canada reached a record high in deal value, and deal count with approximately CA $9.4 billion and 217 deals. The following year, and despite the global ‘VC Winter,’ there were 169 FinTech investments worth CA $1.75 billion in Canada. 2023 saw investment in Canadian FinTech firms reach approximately CA $1.2 billion across 109 deals.

2024 meanwhile, will be a pivotal year for Canadian FinTech firms. Larger incumbents are expected to accelerate innovation and growth, while emerging businesses will navigate financing challenges, positioning the industry for a potential rebound.

The Canadian Fintech industry is on the cusp of full bloom. Several emerging trends suggest a very promising future for the sector:

Focus on B2B FinTech solutions: There is potential for growth in funding for B2B Fintech solutions because of it’s competitive edge over traditional financial services with outdated and inflexible infrastructure.
Increased investor activity: As economic conditions improve and interest rates decrease, more investors are expected to enter the market and spread funding more evenly across different stages of Fintech maturity. Early-stage funding in particular is likely to increase, especially after successful exits by Fintech companies, such as Verafin’s US $2.75 billion sale in 2021.
Innovation and disruption: Canadian Fintech firms need to focus on creating disruptive products and intellectual property that can compete on a global scale. Innovation will be key, as investors have expressed concerns over the prevalence of “me too” products in the current market.
Support for SMEs: Fintech solutions targeting SMEs will be a major growth driver. SMEs, which represent about 90% of businesses, have been underserved by traditional financial services for a very long time.

Why Choose Ontario 
For FinTech

A hotbed for financial servicing

Ontario has firmly proven itself as a pivotal hub for FinTech startups considering 64% of Canada’s FinTech firms are based in Ontario. The global startup community recognizes the Toronto and Kitchener-Waterloo regions as among the most significant startup ecosystems worldwide.

In 2021 alone, 25 of the firms from the Deloitte Canadian Technology Fast 50 were from Ontario, with five of these being prominent FinTech companies.

17,000+ financial services firms
750+ FinTech firms
8th place in the global FinTech hub rankings (Toronto)
320,000 IT professionals
400+ AI organizations

Regional Strengths

Toronto has become a central location for financial services. It is distinguished as one of 10 global cities that function both as a startup hub and a centre for financial services. In terms of financial infrastructure, Toronto is home to Canada’s five major banks, over 80% of the foreign banks operating within the country, more than half of the global top 10 banks by market capitalization, seven of the top 10 Canadian asset managers, and the Toronto Stock Exchange (TSX), which is the world’s 10th largest equity exchange based on market capitalization. Toronto was recently also ranked as the second largest financial hub after New York in North America, with over 1200 FinTech companies, 12,000 financial services companies and more than 380,000 financial services professionals in this sector. The sector has added over 80,000 tech jobs in the past five years.

Waterloo Region boasts a nearly double survival rate for first-year information and communications technology (ICT) startups compared to the global industry average. Among the G-7, it has the most favourable R&D tax and corporate investment tax rates.

Talent and Academia

Ontario boasts a top-tier, publicly funded network of 23 universities and 24 colleges, leading to 70% of adult workers holding post-secondary education, the highest rate among OECD countries. Additionally, Ontario is also recognized as North America’s second-largest tech cluster.

The province has over 320,000 employed across 26,000 IT firms, representing almost half Canada’s IT workforce. In fact, 48% of Canada’s IT workers are based in Ontario. Additionally, the University of Waterloo in Ontario graduates are the 2nd most frequently hired by Silicon Valley.

Access to Markets

Canada’s trade agreements cover markets valued at over US $50 trillion with 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).

Your business can have access to 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.

We Help You

See all of our programs and find out how TBDC can maximize the potential in your FinTech business.

Ontario’s FinTech Industry Facts

1st

Largest FinTech
sector in Canada

400,000

employees

64%

of Canadian FinTech firms are here

2nd

largest North American financial hub after NYC

8th

in the global FinTech hub rankings (Toronto)

10th

largest global equity exchange here

FinTech Support

Funding, Resources and Organizations

Using the Business Benefit Finder, you can find many more government grants and incentives relevant to your tech startup.

Canadian Securities Administrators (CSA) is the umbrella organization of Canada’s provincial and territorial securities regulators whose aim is to improve, coordinate and harmonize the regulation of the Canadian capital markets.
Financial Services Regulatory Authority of Ontario (FSRA) regulates insurance, pensions, credit unions, caisses populaires, trust companies, loan companies, and mortgage brokerages and administrators in Ontario. Some Fintechs, depending on their services, might fall under the oversight of the FSRA
Innovation, Science and Economic Development Canada (ISED) collaborate with Canadians across various economic sectors and regions to enhance investment conditions, boost innovation, and expand Canada’s global trade share.
Ministry of Economic Development, Job Creation and Trade focuses on fostering economic development, innovation, and trade.
Ministry of Finance plays a key role in overseeing the financial services sector in the province, including FinTech startups. They set regulatory and fiscal policies that affect financial entities, including FinTech companies.
Office of the Superintendent of Financial Institutions (OSFI) supervises and regulates federally registered banks, insurers, trust and loan companies, and private pension plans subject to federal oversight.
Ontario Securities Commission (OSC) offers guidance through The innovation Office on regulatory requirements under securities laws.

Blockchain Research Institute

located in Toronto, is an independent, global think tank that brings together the world’s top researchers to undertake ground-breaking research on blockchain technology. Visit Site

FinTech Canada

is a Canada-wide non-profit organization that connects Canadian FinTech companies, investors, and other stakeholders. It serves as a hub for knowledge sharing and collaboration among its members. Visit Site

Toronto Financial International

is a public-private partnership between Canada’s largest financial services institutions and the government. Visit Site