2. What is a cluster? Defined by Michael Porter as a geographical concentration of companies and industries They are connected through the markets they serve, products they produce Clusters are associated with the same trade associations and educational institutions
4. Toronto’s Financial Services Cluster The financial services sector employed 220,000 people in 2008 Considered the third largest in North America based on direct employment New York Chicago Home to 3 of the worlds 25 largest banks and Canada’s 5 largest banks 3rd largest exchange in North America, 7th in the world
5. Toronto’s Financial Services Cluster 82% of financial services employees have at least a post secondary education 47% have a University degree 26% have a college diploma 9% have post secondary education Attractive location
6. Toronto’s Financial Services Cluster Major players include Banks RBC Financial Group TD Bank Financial Group Scotiabank CIBC BMO Financial Group Credit Agencies Security Dealers Insurance
7. Toronto’s Financial Services Cluster Examples of innovation through banking BMO – Cebra Inc. CIBC – Amicus Royal Bank – Baldhead Systems TD Waterhouse – E-services Scotiabank – Telescotia Continuous investment in technology
8. Toronto’s Financial Services Cluster Support systems Toronto Financial Services Alliance They are an alliance of all levels of government, individuals, educational institutes and members of the financial services industry Their primary objectives are: 1. To develop and implement awareness-building campaigns for the financial services sector 2. To enhance the competitiveness of Toronto’s financial sector within the regional, national and global marketplace 3. To establish partnerships with the financial services industry to identify and develop positions on key common policy issues and advocate for adoption
9. Global Competition Currently, New York and London are tied for first Hong Kong and Singapore are growing significantly fast (they are 3rd and 4th respectively) Toronto is ranked 11th according to the GFCI
10. Global Competition The top 10 emerging financial centres that New York and London should look out for Toronto – gunning to be relevant Luxembourg – safe and exotic Sao Paulo – it’s just more fun Zurich – no bonus taxes here Shanghai – because Beijing said so Hong Kong – Disneyland for bankers Singapore – literally, everything is perfect Tokyo – the contrarian banker play Johannesburg – where to be long on Africa Dubai – the desert financial dream isn’t dead yet
