Canadians are 2x as likely to change wealth managers compared to their global counterparts, finds EY survey
Canadian investors now expect to work with multiple providers by 2025
- 45% of respondents are looking to add, switch or move providers in the next three years
- Investment performance and fees are key factors when selecting a wealth manager
- 40% of Canadians expect to increase or maintain their use of digital service providers
TORONTO, July 6, 2023 /CNW/ - The 2023 EY Global Wealth Research Report finds that 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.
"Economic uncertainties and an increasing willingness to switch products or providers are transforming the Canadian investment landscape," says 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 survey reveals that 45% of Canadians are actively seeking to add, switch or move providers, reflecting a notable 24% rise since 2021. Though this willingness to act varies within Canada. Only 29.9% of respondents from the Western provinces cited this intention. While that number rises to 57.7% of respondents from East Coast provinces.
When selecting a wealth and asset manager, brand reputation (31%) and personal referrals (19%) hold greater significance for Canadian investors compared to their global counterparts, while investment performance (48%) and fees (40%) remain top drivers nationwide.
A large proportion of Canadian investors now expect to work with multiple providers by 2025 to support better performance and diversification. In fact, 40% are willing to increase or maintain their use of digital service providers — specifically FinTechs and digital asset offerings — in the next three years to unlock the value they're looking for.
At the same time, investor appetite for virtual advisor interactions has been transformed since the start of the pandemic. In 2021, only 12% of investors identified virtual consultations as their preferred advice channel – this figure now stands at over 40%, rivaling in person for the most preferred channel for planning and advice activities. Further along the digital spectrum, Quebec in particular demonstrates a stronger desire for digital self-serve tools in financial planning, as well as a different distribution of advisory and execution-only styles compared to other provinces. However, Canadian's digital engagement preferences (17%) overall still lag behind the global average at 24%.
"Canadian investors want personalized experiences that provide unwavering support throughout their wealth management journey," adds Hermine Ferron-Brandin, Associate Partner, Business Transformation. "Given the demand for digital services, wealth managers should aim to foster a broad client experience that blends virtual and in-person touchpoints through innovative collaboration tools and self-service capabilities."
EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
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 are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws.
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
SOURCE EY (Ernst & Young)
Dina Elshurafa, [email protected], 519 697 2694; Lina Sakkal, [email protected], 514 349 1484
Share this article