- BMO's Technology & Innovation Banking Group continues to
be well positioned to provide support in this fast evolving
sector
TORONTO, June 19, 2020 /CNW/ - There has never been a
better time for the high-tech sector to thrive and lead the
innovation economy, as the effects of COVID-19 are anticipated to
weigh down other sectors, according to a new report from BMO
Economics.
"One of the fastest growing sectors of the Canadian economy is
about to get a booster shot, as more shopping and work moves
online," said Sal Guatieri, Senior
Economist, BMO Capital Markets. "Though still relatively small, the
sector is growing rapidly and can only benefit from acceleration in
online shopping and remote working, activities that rely on
efficient, high-speed digital technology".
"The sector is a beacon of light in a very cloudy economic
outlook," concluded Mr. Guatieri.
The report notes that few sectors have grown faster than
Information and Communications Technologies (ICT). Led by a number
of high-flying homegrown companies (such as Shopify) and a rapid
expansion of U.S. technology giants north of the border, the sector
has consistently outperformed the national economy in recent years.
"Even as the economy decelerated in 2018 and 2019, the sector
strengthened to a near 5% pace," stated Mr. Guatieri. "While real
GDP contracted 8.2% annualized in the first quarter of this year,
the ICT sector slipped just 0.4%."
ICT accounted for 4.8% of Canadian GDP in 2019, up from 4.2% in
2007. ICT has also been a stable source of jobs for Canadians, with
employment in computer systems design and related services
expanding 7.5% on average between 2014 and 2019.
In support of this quickly growing sector, BMO introduced a
Technology & Innovation Banking Group. This specialized group
provides advice and funding to companies at every stage of their
lifecycle – from start-up to post exit or IPO – across North America. In a little over a year since
launching, the group has financed a number of high growth companies
in both Canada and the United
States.
"We're focused on finding ways to help drive the innovation
economy forward and support companies to compete here in
Canada and on a global scale,"
said Andre Salvi, Head, Technology
& Innovation Banking Group, BMO Bank of Montreal. "Our continued ability to do this
comes down to understanding the unique needs of the companies
operating in this space."
"Canada has an opportunity to
be a leading innovation economy, and we continue to view it as a
vital sector," said David Wismer,
Global Head of Technology Investment Banking, BMO Capital Markets.
"The support our team provides in helping companies access capital
markets on a North American basis will continue to allow them to
pursue their strategic objectives and achieve their growth
potential."
The report, included in BMO Economics' weekly Focus publication,
can be downloaded at economics.bmo.com.
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly
diversified financial services provider - the 8th largest bank, by
assets, in North America. With total assets of $987
billion as of April 30, 2020, and a team of diverse and
highly engaged employees, BMO provides a broad range of personal
and commercial banking, wealth management and investment banking
products and services to more than 12 million customers and
conducts business through three operating groups: Personal and
Commercial Banking, BMO Wealth Management and BMO Capital
Markets.
SOURCE BMO Financial Group