Montréal is in full swing, emerging as a recognized financial center. But what makes our city such a popular destination for the global financial industry?
In a recent article in Expansion Solutions Magazine, John H. Boyd — one of the nation's most experienced and trusted corporate site selection consultant in the United States — outlines current trends in the financial sector and positions Montréal as “the new Wall Street of the North”.
The financial industry is undergoing a major transformation in 2024. Significant changes include the post-pandemic return to the office, increasing technology investments by banks in artificial intelligence, and a migration of activities from traditional centers (New York, San Francisco, etc.) to emerging, less expensive hubs.
In this context, Montréal is becoming a key player and a destination of choice for these strategic moves. Here's why Montréal offers an ecosystem favorable to the development of local and international financial institutions, according to the author:
1. Competitive Operating Costs
Montréal boasts some of the lowest annual operating costs in North America. According to Mr. Boyd’s model, operating a service center in the financial sector costs, for example, 47% less in Montréal than in San Francisco (53% less when the IFC Incentitive Program is considered). These appealing savings attract financial companies looking to optimize their expenses while maintaining a high quality of service.
* Based on a model of a 150 FTE financial services back office in a 30,000 square feet Class- B office space U.S. dollars = 1.34 Canadian dollars, .,92 Eurozone euro, .81 British pound Source: The Boyd Company, Site Location Group, Princeton, NJ (2024)
2. Growing Talent Pool
The metropolis is recognized as home to one of the world's largest talent pools in artificial intelligence, quantitative methods, risk management, trading and IT. Such a talent pool is a major asset for companies in the financial sector, who can benefit from the presence of qualified professionals in an environment conducive to innovation and collaboration.
3. Strategic Proximity and Advantageous Time Zone
Located close to other global financial centers, Montréal is ideally positioned to manage the challenges of the new T+1 settlement cycle. Additionally, its time zone aligned with that of Wall Street facilitates transactions and communication with other markets.
4. Leadership in Financial Technology
Montréal stands out for its concentration of fintech start-ups and innovative companies. The presence of Station Fintech, Canada's largest fintech hub, is a testament to the city's effervescent financial technology scene. Emerging payment, blockchain, automation and other solutions find fertile ground here.
To find out more about Station Fintech Montréal, visit our website.
Station Fintech Montréal
5. Commitment to Sustainable Finance
The city is also strengthening its position as a leading center for sustainable finance and ESG standards. The establishment of the North American headquarters of the International Sustainability Board (ISSB) in Montréal demonstrates its commitment to sustainable practices and responsible investment.
To find out more about Finance Montréal's sustainable finance projects and initiatives, click here.
In short, Montréal is positioning itself as a major player in the evolution of the financial industry, offering a favorable environment for financial enterprises through competitive operating costs, strategic logistical advantages and a strong commitment to sustainable finance. The new Wall Street of the North is emerging, and Montréal is its epicenter.
This dynamic ecosystem makes it an attractive choice for investment and growth opportunities in the financial sector. To find out more and discuss the possibilities for your business, don't hesitate to make an appointment with our team.
To read John H. Boyd's full article, visit the Expansion Solutions Magazine website.
