It may seem like that the financial industry in North America starts and ends in New York. But a handful of other U.S. cities have gained ground as financial hubs while the Canadians are giving Wall Street a run for its money, according to the latest rankings of global financial centers.
New York tied with London for the No. 1 spot, but as the leader of the North American finance industry, the Big Apple was hit hardest by the financial crisis. This allowed other cities on the continent to narrow the rankings gap, according to the Global Financial Centres Index compiled by Z/Yen for the City of London Corporation. The ranking is based on a biannual survey of financial professionals rating factors such as operational costs, access to financial markets and taxes. Cities can earn up to 1,000 rating points.
While New York only gained one rating point to 775 points since the last survey, all of the other North American cities' scores jumped by double-digits.
Chicago remained the second most highly ranked North American financial center, climbing two spots to sixth place. The report's authors say that while the Midwestern city is best known as the hot place for derivatives trading it is "a real 'all-rounder,'" scoring in the top ten in all competitive areas that include asset management, banking and infrastructure.
In the next tier, Boston, San Francisco and Washington D.C. all made similar gains. Its high marks on the measures of "connectivity" surprisingly deemed Washington D.C. as an "established player," at least among its domestic rivals.
Meanwhile, Canadian cities saw a greater increase in scores than any of the American centers. Toronto has become the clear financial leader in the Great White North. It rose 20 points and performed well in asset management, professional services and the availability of talent. Vancouver continued its push as a city with deep financial services roots and Montreal strengthened its reputation as well.
Below is a breakdown of the rankings of the top North American financial centers:
1. New York, 775 ratings points
Change in rank since last GFCI: 1
6. Chicago, 678 ratings points
Change in rank since last GFCI: 2
12. Toronto, 667 points
Change in rank since last GFCI: 1
14. Boston, 652 ratings points
Change in rank since last GFCI: 3
16. San Francisco, 651 ratings points
Change in rank since last GFCI: 2
17. Washington D.C., 647 ratings points
Change in rank since last GFCI: 3
23. Vancouver, 623 ratings points
Change in rank since last GFCI: 6
24. Montreal, 617 ratings points
Change in rank since last GFCI: 6
Related: Top Six U.S. Financial Hubs Not Named New York City
Write to Yoree Koh
