A new research report from Ernst & Young (EY) could be startling to some wealth managers. The 2023 EY Global Wealth Research Report found 45 per cent of that survey’s respondents were looking to add, switch or move service providers in the next three years. This is up 24 per cent since 2021.
Investment performance was cited by 48 per cent of respondents and fees were cited by 40 per cent of respondents as the top reasons for choosing or defecting from their wealth and asset managers.
“Canadian investors are nearly twice as likely as their North American counterparts to switch wealth management providers over the next three years. That number doubles if their existing advisors don’t share the same values,” they write.
“Economic uncertainties and an increasing willingness to switch providers are transforming the Canadian investment landscape,” adds David Hurd, EY Canada wealth and asset management leader. “Wealth managers have a unique opportunity to embrace this shift by demonstrating to clients the value they can deliver while navigating this complexity.”
The report also looks at the use of digital service providers – 40 per cent are willing to increase or maintain their use of digital offerings to derive the value they are looking for. It also says Canadians generally feel less financially prepared than other North American and global respondents.
“Clients are hungry for stability and guidance,” the report states. “They are also looking for wealth managers to do more for less. Positioning yourself as a partner capable of navigating complexity efficiently can differentiate you in a sea of competition.”