Entrepreneurship, Training and Trade
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Financial Services
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Sector Structure
Size: Manitoba’s financial services sector employs an estimated 20,000 persons.
Dominant Activities:
- Banking (Consumer, Commercial, Investment)
- Vehicle & Equipment Leasing
- Wealth management — Insurance, Securities, Mutual Funds
Structure & Concentration
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Banks— All the major Canadian chartered banks are represented in the province, as well as a few smaller regional banks, and three foreign banks. The major banks have an average of about 45 branches each in Manitoba.
In addition to the chartered banks, the province is home to 55 credit unions and 6 caisses populaires, which operate about 200 branches throughout the province.
A number of government financial intermediaries supplement the commercial services offered by the industry. These institutions include the Business Development Bank of Canada, Export Development Corporation, and the Farm Credit Corporation.
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Leasing — Vehicle leasing is dominated by the financing arms of the major auto manufacturers. Equipment leasing has 3 groups of major players: banks, manufacturer financing companies (captives), and independents.
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Investment Dealers — There are 108 firms in Manitoba licensed by the Manitoba Securities Commission as investment dealers.
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Mutual Fund Companies — The two firms that dominate this sector provincially are integrated financial services companies that both create their own mutual funds, and distribute mutual funds (in-house and third party). The main activity of the remainder of the firms in this sector is distribution of third-party funds. Most firms are small to mid-sized, although two have expanded regionally and nationally.
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Insurance Companies — Manitoba’s life insurance companies are major participants in the national financial services industry. Manitoba is home to 3 life insurance companies. The largest player is Great West Life Assurance Co., which is also the largest insurer in Canada. About 2,800 of Great West Life's 12,000 employees are located in Manitoba. There are also nine property and casualty insurance firms based in Manitoba.
The insurance companies are affiliated with approximately 2,500 agents that distribute the companies’ products. Many of these agents are independents, operating in one and two person firms.
Highlights
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IGM Financial Inc., whose head office is located in Winnipeg, is the largest mutual fund distributor in Canada, selling both its own portfolio of financial products as well as third party funds.
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Great West Life Assurance Co., whose head office is also located in Winnipeg is the largest insurance company in Canada.
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Winnipeg-based National Leasing Group Inc. is the largest independent Canadian leasing company.
Sector Capabilities
- Banking (Consumer, Commercial, Investment)
- Leasing
- Insurance (Life and Property/Casualty)
- Securities
- Mutual Funds (creation & distribution)
- Venture Financing
Trends
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Recent growth in credit unions — In response to rationalization of branches by some of the national chartered banks, Manitoba’s credit unions increased the number of their branches in the province in recent years, with a corresponding increase in membership.
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Diversification in product offerings -- Changes in the regulatory system governing the financial services industry in the last decade have allowed cross ownership of different types of companies within the industry. This has blurred the distinction among the various financial institutions, and most institutions have diversified their product offerings. (Chartered banks offer insurance and mutual fund products, insurance companies offer wealth management, etc.)
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Relaxation of federal legislation -- Recent federal legislation has relaxed some of the regulations that have historically governed the Canadian financial services industry. This may offer some opportunities for growth of provincial institutions beyond the geographic boundaries of the province.
Key Players
Contact Info
Mr. Ron Waugh,
Senior Project Manager,
Manitoba Entrepreneurship, Training and Trade
Phone: 204-945-1626
Fax: 204-945-3977
E-mail: ron.waugh@gov.mb.ca
Web: www.gov.mb.ca/ctt/index.html
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