More than 40% of clients plan to switch wealth management firms

By The IJ Staff | August 29 2019 01:30PM

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Forty-four per cent of Canadian wealth management clients say they’re planning to move money from existing providers within the next three years, says a new report by EY.

The 2019 Global Wealth Management Research Report indicates that increasing digitalization of wealth management activities and the rise of self-service offerings is empowering clients to seek out attributes such as competitive pricing (33%); personalized and connected solutions (30%); 24/7 access to their wealth management portfolio (28%) and more personal advice and planning (27%).

Untapped opportunity

EY says “the untapped opportunity for wealth management providers lies on the sidelines, where roughly half of Canadian consumers express interest in financial advice and planning but state they don’t currently receive any.”

This is especially true for major life events, including leaving a job (67%); inheriting or receiving money (64%) and having a child (63%).

“Canada’s wealth management sector isn’t immune to changes in consumer behaviour,” says David Hurd, EY Canada’s National Wealth & Asset Management Leader. “Canadians are seeking advice from an average of four different sources, and often turn to niche providers to solve specific problems. There remains a large opportunity for firms that can put themselves at the centre of clients’ financial ecosystem.”

Become a trusted advisor

He adds that wealth managers must engage with clients and become trusted advisors during major life events or risk them changing providers. “To do that they need access to timely and relevant information from internal and external sources. With more data points, advisors and firms can provide personalized, custom-tailored services that appeal to clients at various life stages. That means asking questions and being responsive to their needs and wants every step of the way.”

To learn more, consult the report here.

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