Ensuring the Future: Understanding the Importance of Toronto’s Financial Services Sector

Financial services—which include banking, credit unions, insurance, asset management, securities, exchanges, and back office operations—are an integral part of Toronto’s economy. In terms of direct effects, the sector ranks second in terms of GDP and fifth in terms of employment. About 1 out of every 13 jobs in the Toronto metro area is a direct financial services sector job. The sector also indirectly supports many jobs in other sectors, both in Toronto and across the country. In a global context, Toronto is an important second-tier financial centre—part of a group of cities such as Frankfurt, Sydney, and Zurich—and accounts for half of Canada’s total stock of outward foreign direct investment. This report aims to illuminate this vital sector’s state, structure, composition, and economic contribution for policy-makers and the sector’s institutions.