From leading the way in gender parity to fintech companies looking to compete with the Big Six banks, Toronto’s finance sector is truly shaking things up.
Toronto is Canada’s financial hub. Not only is it the home base of most major national banks and international branches, but it’s also where you’ll find the Toronto Stock Exchange and a deep pool of diverse financial professionals who work in areas that range from fintech and insurance to sustainable banking and capital markets. Whether you’re planning a finance meeting or conference or just want to know more about one of the city’s top economic sectors, here are 10 groundbreaking innovations that prove Toronto is leading the way when it comes to finance.
1. The finance sector in Toronto is truly huge
The finance sector in Toronto is massive. Over 270,000 people work in the industry, and it’s one of the largest private sector contributors to gross domestic product (GDP) in Toronto. Plus, it’s a globally recognized powerhouse: Toronto not only boasts a higher concentration of financial sector employment than either New York or London, but it ranks as one of the top financial centres in the world.
2. The award-winning Wealthsimple, which holds over $50 million in assets, was born in Toronto
One of Toronto’s and Canada’s biggest fintech successes was born in Toronto. Wealthsimple, an online investment management service with low fees, was founded by Michael Katchen, who had a spreadsheet filled with tips to help him and his colleagues with their investment portfolios. That idea led to Wealthsimple, which is now a decade old and holds over $50 million in assets under management ranging from RRSPs and TFSAs to private equity and cryptocurrency.
3. The finance industry here is leading the way in terms of gender parity
While Canada still needs more women in leadership positions, the finance industry is leading the charge. According to the Prosperity Project’s 2024 annual report, the finance and insurance sector has the greatest number of women in executive officer, senior management and pipeline to senior management roles (35, 41 and 45 per cent) compared to other industries like manufacturing and retail trade. As the country’s financial hub, Toronto is largely responsible.
4. FreshBooks, which serves 30 million users globally, started in a Toronto basement in 2004
If you send invoices and track your expenses, you might be using FreshBooks. Launched in one of the founders' basements in Toronto in 2004, the company now has over 500 employees and 30 million users in more than 160 countries. FreshBooks’ success showcases how the city has fostered an environment where tiny startups can truly scale.
5. Home to three of the world’s largest pension funds
In addition to scrappy startups, Toronto is the home base for three of the largest pensions in the world. There’s the Ontario Teachers’ Pension Plan, with net assets of over $255 billion; Omers, one of the biggest public-service pension plans in Canada, with net assets of more than $128 billion; and the Canadian Pension Plan Investment Board’s assets sit just north of $675 billion.
6. Koho Financial and Questrade are looking to compete with the Big Six banks
While Koho Financial was founded in B.C. in 2014, the company is now based out of Toronto. The fintech company offers a no-fee, reloadable, prepaid Visa card, plus a mobile app to track your activity. Questrade was founded in Toronto in 1999 and provides low-fee self-directed investing tools. Both companies are currently in the process of applying for a banking license. If they succeed, they may become another source of competition for the Big Six banks in Canada.
7. North America’s largest innovation hub has supported 1,200+ startups, including fintech
When you hear “financial sector,” you might think of banks and other traditional financial institutions, but Toronto’s industry is deeply connected to tech. Located right downtown, MaRS, North America’s largest innovation hub, has raised over $19 billion since 2010 and has supported more than 1,200 tech and science startups, including fintechs like LowestRates.ca and Lendified, that modernize banking, insurance, wealth management and insurance.
8. Toronto is leading the way in sustainable finance
The finance industry in Canada has long been waiting for clear guidelines to help guide sustainable investments. Thanks to the Toronto-based Canadian Sustainability Standards Board, which recently released its standards, the industry is now aligned with the leading international board. The standards focus on climate disclosure and how wider societal and environmental issues affect the industry’s governance, risk management and performance.
9. Toronto has more than 400 fintech companies
Toronto is often considered “Silicon Valley North” thanks to its major tech scene. And while we’ve already mentioned some globally known fintech startups that started in Toronto—Wealthsimple, Koho, Questrade and FreshBooks—there are so many more, too. There’s Clearco, which provides capital to ecommerce merchants, Borrowell, which offers free credit scores, and Loop, a company that helps SMBs manage their international financial operations.
10. RBC is dedicated to responsible AI-powered innovations for the finance industry
Royal Bank of Canada (RBC), one of the country’s Big Six banks based in Toronto, recognized the potential of AI when it launched Borealis AI Research Centre in 2016 to help develop product innovations such as an AI-powered trading platform. RBC also partners with the Vector Institute for Artificial Intelligence to help develop and adopt AI responsibly. Their work is paying off: RBC ranked among the top three for AI maturity among 50 global financial institutions.
