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Toronto's key industry clusters: Financial services |
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 Toronto is the third largest North American financial services centre after New York and Chicago and is Canada's financial and business capital. Toronto's financial services sector is the continent's fastest growing. Head office and strategic planning functions, financial product development, risk management and systems design, training and development - just some of the expertise found in Toronto's dynamic and vibrant business centre.
 Significant dividends
Skilled labour force
Attractive location
Key companies
Support systems
Relevant reports
Contact information
Significant dividends
- The third-largest North American financial services centre after New York and Chicago, based on direct employment.
- North America's fastest expanding financial services sector - growing 41 per cent between 1994 and 2004.
- Home to 3 of the world's 25 largest banks and Canada's 5 largest banks.
- Headquarters for 6 of Canada's top insurers that manage over 90 per cent of the industry's assets, 61 mutual funds companies, 58 pension fund managers, and 5 Canadian pension plans with combined assets in excess of $250 billion.
- Home-base for the 3rd largest exchange in North America, and 7th largest in the world.
- The centre for over 10 per cent of all Canadian economic activity with a population of 2.6 million and $123 billion.
Skilled labour force
The clustering of financial services in Toronto has attracted the highest quality employees to the city. Toronto has the skilled knowledge workers and multi-lingual labour force much sought after in the financial services industry.
- The financial services sector directly employed 220,000 people in the Greater Toronto Area (2008).
- Including indirect effects, the sector employed a total of 350,000 people, accounting for over 12% of employment in the GTA (2008).
- Financial services job growth in the region generated an incremental $6.2 billion in GDP from 2003 to 2008, more than compensating for the $3.8 billion lost from manufacturing.
- One out of every 3 lawyers and accountants in the downtown area specializes in the financial services sector.
- Toronto is a leading knowledge centre with three universities and four colleges. More than 70% of financial service employees have post-secondary designations, well ahead of the industrial average.
- Toronto's three MBA programs graduate more than 600 students per year.
- The Toronto CFA Society is the second largest in the world after New York, boasting more than 5,500 members.
- The cluster benefits from strategic links to other economic sectors within the city. Toronto is also the hub of Canada's IT&T and digital media industry and home to the country's most extensive fibre-optic network. Canadian institutions are world-leaders in the development and use of debit card and automated bank machine technology.
Attractive location
- Toronto is an attractive location for start-up, expanding and relocating companies, and has seen significant growth of businesses in various industries requiring capital.
- A recent KPMG study found that in Toronto the overall cost of operating a financial services firm was much less expensive than major international cities including New York, London and Tokyo with base labour rates in a financial services firm 19.6 to 38.3% less.
- Toronto enjoys lower business costs than other major American cities, including New York and Chicago. Toronto's competitive cost advantage is primarily due to lower labour costs and the modest cost of office space.
Financial Services - Total Annual Operating Costs Compared:
Toronto vs. Select International Cities
| City |
Total Operating Costs |
| Toronto |
9,273 |
| Sydney |
9,376 |
| Chicago |
9,559 |
| New York |
10,312 |
| London |
13,791 |
| Frankfurt |
14,361 |
| Tokyo (Yokohama) |
14,903 |
Key companies
Top 5 Toronto-based Banks
| Company |
2004 Revenues ($000s) |
| RBC Financial Group |
25,204,000 |
| CIBC |
16,705,000 |
| Scotiabank |
16,497,000 |
| TD Bank Financial Group |
16,015,000 |
| BMO Financial Group |
13,208,000 |
*Source: National Post FP500, June 2004
Home to 60% of Canada's top 10 life insurance companies
| Rank |
Company |
2004 Revenues ($000s) |
| 1 |
Manulife Financial Corp. |
27,150,000 |
| 2 |
Sun Life Financial Inc. |
21,748,000 |
| 7 |
Transamerica Life Canada |
830,252 |
| 8 |
The Empire Life Insurance Co. |
710,514 |
| 9 |
RBC Life Insurance Co. |
694,571 |
| 10 |
The Independent Order of
Foresters |
688,984 |
*Source: National Post Business June 2005
Over half of Canada's top 15 Property and Casualty firms are based in Toronto
| Rank |
Company |
2004 Revenues ($000s) |
| 1 |
ING Canada Inc. |
3,780,886 |
| 3 |
Aviva Canada Inc. |
3,082,677 |
| 4 |
Kingsway Financial Services Inc. |
2,437,190 |
| 8 |
State Farm Group |
1,542,680 |
| 11 |
Royal & Sun Alliance Canada |
1,348,084 |
| 12 |
Northbridge Financial Corp. |
1,335,064 |
| 14 |
AXA Canada Inc. |
1,206,224 |
| 15 |
The Dominion of Canada General
Insurance Co. |
1,155,544 |
*Source: National Post Business June 2005
Toronto-based financial companies ranked by employees (2004)
| Rank |
Company |
Market Capitalization ($000s) |
Employees |
| 5 |
RBC Financial Group |
41,631,119 |
60,000 |
| 9 |
Sun Life Financial |
23,154,692 |
13,800 |
| 15 |
Scotiabank |
40,224,833 |
43,928 |
| 14 |
CIBC |
23,978,220 |
37,281 |
| 17 |
TD |
33,272,500 |
42,843 |
| 4 |
Manulife |
45,923,621 |
20,000 |
| 22 |
BMO |
27,430,776 |
33,593 |
*Source: National Post Business June 2005
Support systems
The Toronto Financial Services Alliance (TFSA) works closely with industry, affiliate services and government to enhance and promote the competitiveness of Toronto as a premier North American Financial centre.
Other key organizations include:
- Association of Canadian Pension Management
- Canadian Bankers Association
- Investment Dealers Association
- Investment Funds Institute of Canada
- Canadian Life & Health Insurance Association
- Insurance Bureau of Canada
- Canadian Finance & Leasing Association.
Relevant reports
Contact information:
Senior Advisor, Financial Services Sector
Susan Viegas
Tel: 416-397-4817
Fax: 416-392-3374
sviegas@toronto.ca
Toronto Financial Services Alliance (TFSA)
Tel: 416-397-4833
Fax: 416-392-3374
info@tfsa.ca
www.tfsa.ca
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