EY survey finds one in five Canadian investors plan to switch wealth management firms

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  • Millennials lead the charge, with Canadians 41+ not far behind

  • Products and services are top concerns when selecting a wealth manager

  • 56% of respondents expect to use more digital and virtual tools like robo advisors 73% of respondents have set personal sustainability goals

TORONTO, June 7, 2021 /CNW/ – The EY Global Wealth Research Report has revealed that one in five Canadian investors plan to switch wealth management firms in the next three years, due to investment performance (26%) and changes brought on by the pandemic (26%).

Where will wealth take clients – chart (CNW Group/EY (Ernst & Young))

“Perceptions around value for wealth management products and services are rapidly changing,” says David Hurd, EY Canada National Wealth & Asset Management Leader. “Firms will need to show the best kind of value for the right user to retain their existing clients, and attract those on the move from their competitors.”

Canadian investors value products and services above all other aspects of their provider’s approach and an increasing number of investors in Canada are interested in accessing a greater range of products. Today, the majority of Canadians use an average of 4.1 investment products, but about half of investors prefer to use a single-source financial services provider. On the other hand, experiential factors and low costs are driving an increasing proportion of respondents to expect basic wealth offerings, like standard investment products and trading transaction services, at no cost by 2024.

“Although three-quarters of Canadian investors say their advisor provides value for their money, roughly 40% remain concerned about hidden costs when working with their wealth manager, suggesting there is scope to improve transparency and education to build client loyalty,” Hurd adds.

But fees aren’t the only factor that Canadian investors are considering when deciding who they work with – or how. While 56% of Canadians expect to use more digital and virtual tools like robo advisors and chatbots going forward, they’re still seeking deeper insight from a real, qualified advisor.

“As the pandemic ultimately recedes, that personal connection will likely take different shapes, as some clients will want in-person meetings back on the books, while others will appreciate the convenience of a video call,” explains Hurd. “Wealth firms should prioritize improvements to hybrid models that offer both, and the development of flexible, seamless interactions to differentiate themselves in a competitive market where investors want options.”

Looking ahead, the survey finds that wealth management clients across the globe are looking to build purposeful investment portfolios and wealth relationships. A majority (73%) of Canadians have personal sustainability goals as well, yet about half feel their wealth manager falls short in understanding their environmental, social and governance (ESG) values. Despite growing interest in purposeful investments, the majority of Canadians remain hesitant to choose an ESG-focused investment at the expense of their bottom-line results.

“Digging into what your investors expect in terms of products, services and ESG offerings, can lead to richer client conversations, ultimately cultivating the kind of loyalty capable of bolstering bottom-line results and achieving long-term purpose goals,” suggests Hurd.

To learn more about the 2021 EY Global Wealth Research Report, click here.

About EY

EY is a global leader in assurance, tax, strategy and transactions and consulting services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation is available via ey.com/privacy. For more information about our organization, please visit ey.com. Follow us on Twitter @EYCanada.

This news release has been issued by Ernst & Young LLP.

EY logo (CNW Group/EY (Ernst & Young))

SOURCE EY (Ernst & Young)


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