Example: confidence

SEIZING THE OPPORTUNITY: BUILDING THE …

SEIZING THE opportunity : BUILDING THE TORONTO REGION INTO A GLOBAL FINTECH LEADER2 CONTENTSE xecutive Summary 3 Introduction 7 Part 1. Toronto Region Fintech Ecosystem Market Scan 9 Part 2. Technology Trends 26 Part 3. Regulatory and Policy Environment Analysis 33 Part 4. Global Fintech Ecosystem Benchmarking 55 Part 5. Summary of Key Findings and recommendations 59 Conclusion 65 Appendices 66 3 Executive SummaryAcross the globe, the financial services industry is being transformed.

3 Executive Summary Across the globe, the financial services industry is being transformed. Established financial companies are using new and emerging technologies to …

Tags:

  Building, Opportunity, Building the, The opportunity

Information

Domain:

Source:

Link to this page:

Please notify us if you found a problem with this document:

Other abuse

Transcription of SEIZING THE OPPORTUNITY: BUILDING THE …

1 SEIZING THE opportunity : BUILDING THE TORONTO REGION INTO A GLOBAL FINTECH LEADER2 CONTENTSE xecutive Summary 3 Introduction 7 Part 1. Toronto Region Fintech Ecosystem Market Scan 9 Part 2. Technology Trends 26 Part 3. Regulatory and Policy Environment Analysis 33 Part 4. Global Fintech Ecosystem Benchmarking 55 Part 5. Summary of Key Findings and recommendations 59 Conclusion 65 Appendices 66 3 Executive SummaryAcross the globe, the financial services industry is being transformed.

2 Established financial companies are using new and emerging technologies to find more effective ways of doing business and more efficient ways of serving customers. Tech-driven start-ups are striving to establish themselves in an industry traditionally characterized by larger institutions. Consumers are seeking faster, more convenient and transparent of this transformation and upheaval is the result of the growth of the fintech sector, which is leveraging new technology (such as artificial intelligence and big data) in an effort to design and deliver the financial services solutions of the report analyzes the fintech ecosystem that continues to develop within the Toronto-Kitchener-Waterloo corridor (what we will refer to as the Toronto region, or simply the corridor ).

3 It establishes a benchmark framework to compare this ecosystem with others around the world. The report also explores emerging trends in the sector and the impact of the existing regulatory and policy environment and makes recommendations for how the Toronto region can establish itself as a global leader in INNOVATION IN THE TORONTO REGIONFINANCIAL SERVICES IN THE TORONTO REGION#2 Largest Financial Centerin North America250,000+ workers#2 Tech Sectorin North America$14B+ Equity Value4 Fintech Ecosystem Market ScanOver the past several years, the Toronto region fintech ecosystem has continued to grow. Interest in the sector remains high among entrepreneurs, investors, established financial services companies and speaking, the ecosystem boasts a number of strengths, including: a strong core of financial institutions; top-tier research facilities at local academic institutions; a strong talent base.

4 And relatively low business operating costs compared to other global fintech + FINTECHS10 VENTURE CAPITAL FIRMS10 INCUBATORS/ACCELERATORSTORONTO REGION FINTECH SPACEDEALS &INVESTMENTSF intech investments have been on an upward trend and the funding climate is improvingPre-IPO Fintech Equity Investments in the Toronto RegionVolume of InvestmentsDeal CountsGlobally, however, the Toronto region ranks in the middle of the pack in fintech ecosystems, alongside Hong Kong and Berlin, although the pack is heavily skewed towards a few large centres. It lacks the maturity and experience of Silicon Valley, the highly attractive investment climate of New York and the established government support of the United Kingdom and Toronto region ecosystem risks falling further behind as other established and emerging fintech hubs move to seize a global leadership position in this important industry.

5 This could undermine the competitive strength of Canada s financial services industry as a whole. 2010201120122013201420152016051015202530 020406080100120140160180 Millions5 Observations from leading and emerging fintech hubsIn our global scan of leading and emerging fintech hubs, we observed certain characteristics that contribute to a hub s rapid development and its ability to establish a competitive advantage: Openness: Governments of leading and emerging fintech hubs are strategically creating a collaborative, supportive and secure environment that incentivizes innovation from fintechs and financial institutions alike.

6 Some have a central fintech function a champion for the sector or a formal panel to advise the government on fintech matters. Proximity: In leading fintech hubs, strong collaboration among ecosystem participants fintechs, venture capitalists, researchers and financial institutions is apparent. This tight interaction leads to a more entrenched and productive culture of innovation and measured risk-taking. Awareness: In the fintech world, a hub s global reputation and its outreach to other hubs (often to establish partnerships) can help attract both business and investment and lead to the successful export of TrendsTechnology is the foundation of fintech.

7 The commercialization of new or improved technology is what drives innovation in the financial services sector and the fintech ecosystem. The Toronto region benefits from the presence of top-tier research facilities at highly regarded academic institutions. Currently, the Toronto region ecosystem demonstrates particular strengths in web & mobile development and big data & analytics. These two capabilities have been fundamental to the success of companies in the Toronto region to date. Looking forward, the region has recently attracted strategic investments in other emerging technologies: blockchain, cybersecurity, quantum computing and artificial intelligence (AI).

8 Our interviews with the region s fintech stakeholder groups found a growing optimism regarding AI in particular. There is a belief that the Toronto region fintech ecosystem has the potential to achieve a comparative global advantage in the development and deployment of AI to the financial services and Policy EnvironmentHere in Canada, the current regulatory framework in financial services, as it applies to technology, is widely viewed by fintechs as antiquated, cumbersome and a significant impediment to innovation and growth. Navigating the regulatory maze can be expensive and time consuming for fintech start-ups. Many fintech start-ups have difficulty even in determining which legislation applies to their activities and which regulators have jurisdiction over them.

9 Traditional financial institutions may also regard the existing regulatory framework as unduly restricting technological flexible and responsive regulatory environment is essential for fintechs to take off and thrive and for traditional financial institutions to test innovative technologies. A balance therefore needs to be found that preserves the traditional role of regulators (to protect consumers, investors, the capital markets and the broader financial system) while creating a more modern and responsive framework that encourages innovation among start-ups and traditional players. Government policies should also reflect that balance while not inadvertently creating barriers to attracting and retaining instance, some fintech centres around the world have adopted a regulatory sandbox in which an emerging fintech company can test its business model for a limited time without having to run the full gauntlet of regulations or a financial services company can try out a new technology without being bound by the usual regulatory restrictions.

10 This approach may encourage innovation and collaborative partnerships and allow fintechs and traditional players to get new ideas to market more quickly and at a lower :1. Governments need to develop and articulate a clear fintech strategy to align and prioritize efforts to drive the collective growth of the fintech ecosystem. Elements of this strategy should include identifying specific priority areas ( by financial services offerings, technology niches and talent), aligning public sector support to incentivize innovation, and establishing an industry-led panel to advise on all matters related to Governments also need to modernize regulatory frameworks to reflect changing business models, technologies and priorities.


Related search queries