B2B2X is the future of FinTech. The latest report from Boston Consulting Group (BCG) and QED Investors projects that by 2030, revenue from the financial technology sector will increase from US $245 billion to US $1.5 trillion.
Currently, FinTech represents 2% of the US $12.5 trillion in global financial services revenue. By 2030, this is projected to rise to 7%.
Payments made up 25% of FinTech equity funding of US $120 billion since the 2000s, projected to continue growing to US $520 billion.
The next FinTech wave is expected to be led by B2B2X, anticipated to reach US $440 billion in revenues by 2030 with a 25% CAGR.
A country of early adopters. The Canadian FinTech industry is on the cusp of full bloom, with several emerging trends suggesting a very promising future for the sector.
Early adoption of innovative financial technologies
Promising future with emerging sector trends
Several futuristic trends continue to shape the future of FinTech in Canada, driven by evolving societal needs and technological advancements.
A hotbed for financial servicing. Ontario has firmly proven itself as a pivotal hub for FinTech startups, considering 64% of Canada's FinTech firms are based in Ontario.
The global startup community recognizes the Toronto and Kitchener-Waterloo regions as among the most significant startup ecosystems worldwide.
In 2021 alone, 25 of the firms from the Deloitte Canadian Technology Fast 50 were from Ontario, with five being prominent FinTech companies.
Ontario's comprehensive financial services infrastructure positions it as Canada's leading FinTech destination.
One of 10 global cities that function as a startup hub and centre for financial services. Home to Canada's five major banks and over 80% of foreign banks operating in the country.
Nearly double survival rate for first-year ICT startups compared to global average. Among the G-7's most favourable R&D tax and corporate investment tax rates.
Ontario boasts a top-tier, publicly funded network of 23 universities and 24 colleges, leading to 70% of adult workers holding post-secondary education - the highest rate among OECD countries.
Ontario is also recognized as North America's second-largest tech cluster with over 320,000 employed across 26,000 IT firms. 48% of Canada's IT workers are based in Ontario.
• 48% of Canada's IT workers are based in Ontario
• 23 universities and 24 colleges in the province
• 70% of adult workers hold post-secondary education
• University of Waterloo graduates are 2nd most hired by Silicon Valley
Canada's strategic location and comprehensive trade agreements provide unparalleled access to global markets for FinTech companies.
Canada's trade agreements cover markets valued at over US $50 trillion with 1.7 billion consumers.
Access to 187 million consumers within a day's drive of the Greater Toronto Area.