How to Make Toronto the Next FinTech Hotspot

As FinTech becomes more of a dominating presence in our world and more people recognize the potential that exists in exploring this market the positive aspects of becoming a FinTech hub become much more important.

Toronto is an international city with good access to the United States and a solid reputation. It’s known as one of the world’s safest and most livable cities and is constantly rated highly on lists detailing the top cities for business and foreign direct investment.

Toronto is also becoming known in the tech world. It was named as the fastest growing tech market in North America by CBRE’s 2017 North American Scoring Tech Talent report and the country’s most innovative technology companies are from Toronto-Waterloo technology corridor in Ontario. Plus, the number of US tech workers applying for jobs in Canada is steadily increasing.

The city is on the right path to becoming the next big FinTech hotspot. Here’s what needs to be done to increase its presence and ensure it rises to the top.

Although Toronto has the clear potential to become an amazing FinTech hub, there are definite hurdles to conquer become it can claim the title.

One of the major issues facing Canadian startups: regulations. As it stands, Canada does not have a national FinTech strategy.

Other countries aiming to make a stronger impact in the FinTech field—Australia, Hong Kong, Singapore, etc.—have published national FinTech strategies, which gives them a distinct advantage on the world stage.

We are making progress. Last November the government released plans to create a regulatory sandbox, loosening regulations for startups in order to increase innovation, and stated plans to work with FinTech businesses to develop suitable regulations.

Once the proper system is set in place and everyone understands the rules we will see the rise of the amazing products and services Canada can bring to the FinTech sphere.

Another major issue that needs to be addressed is access to capital. Without solid funding options startups won’t originate or flourish in the Toronto marketplace.

The good news? We know this and Canada has several systems set in place to help startups grow.

One such example: The SmartStart Seed Fund. This initiative provides funding to help entrepreneurs bring their startups from concept to market. Offering (fledgling) entrepreneurs up to $70, 000 to grow their startups in the Ontario market, the program also offers the support needed to successfully navigate the startup creation process.

As well, the government offers an R&D tax credit program that can provide startups reimbursements for eligible expenditures. That being said, the country needs to establish a tax policy that is more supportive towards these new businesses.

In terms of angel investors, the Canadian investment field is growing and is reaching record levels. Most of these investors are situated in Ontario, further strengthening the potential for Toronto to establish itself as a place to grow and launch your FinTech startup.

Plus, with free trade deals with the US and the EU, Canada is sitting in a good place to become a business hub for the FinTech field.

The business world is ever shifting and this means there is definite potential for new cities to rise in prominence. Although the Toronto region currently does not bring in the FinTech deals at the level of major hotspots like Silicon Valley, interest and business levels are steadily rising. Toronto is a great city with a solid reputation and a real potential to make a positive impact in the financial world. It is also a modern city and one of the most innovative cities in the world—all great reasons why it should be the next FinTech hotspot.

Toronto’s prominence on the world stage is increasing and with the right push the city could rise to the top of the business heap. The business world know this and now we just need to get the government to understand. It’s not an impossible task. In fact, once a few key issues are addressed, Toronto will truly be the ideal place to launch the next stage of FinTech.

Let’s work to make this happen.