Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Consumers and Financial Advice - Canada - May 2016

“The introduction of CRM2 and the rise of digital advice channels (including robo-advisory services) are two major forces that are likely to have a significant impact on the financial advisory industry in Canada in the coming years.”
– Sanjay Sharma, Senior Financial Services Analyst

This report examines the following issues:

  • Women non-users are more likely to cite insufficient assets while males are more likely to self-manage investments
  • Bank advisors most commonly used
  • Older and higher-income Canadians trust independent financial advisors most
  • Satisfaction levels are high particularly among older women

Financial planning is a process towards achievement of personal goals, needs and priorities through the proper management of a client’s financial affairs. The Canadian financial advice industry is undergoing significant changes with the introduction of new regulatory structures. While there are a plethora of financial planners, advisors and counsellors in the market, there is always demand for quality financial advice. Also, free online tools and robo-advisory services have gained traction in the market, as consumers become more digitally engaged in the search for sources of information and advice.

Canadians, particularly older consumers, are experiencing a huge financial windfall in terms of inheritances and acquisition of financial assets. There is a pressing need for comprehensive portfolio management solutions. But there are issues surrounding trust and quality of financial advice that may prevent some consumers from seeking professional advice. There are also ongoing concerns about the lack of clarity on professional standards required for various types of investment advice.

This Report takes a deeper look at the financial advisory industry in Canada. This Report delves into issues such as usage, reasons for not using an advisor, satisfaction, advisor compensation, use of online advice, perceptions of value-add and general attitudes towards financial advice.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

      • Regional classifications
        • Income
          • Financial advisor
          • Executive Summary

              • The issues
                • Women non-users are more likely to cite insufficient assets while males are more likely to self-manage investments
                  • Figure 1: Reasons for not using an advisor, by gender, February 2016
                • Bank advisors most commonly used
                  • Figure 2: Type of financial advisor used, February 2016
                • Older and higher-income Canadians trust independent financial advisors most
                  • Figure 3: Most trusted source of financial advice, February 2016
                • Satisfaction levels are high particularly among older women
                  • Figure 4: Satisfaction with financial advisors, February 2016
                • The opportunities
                  • Younger and Chinese Canadians more open to using online financial advice
                    • Figure 5: Attitudes towards online financial advice, February 2016
                  • Impact of CRM2 on compensation models and distribution of advice
                    • Will trust levels increase if a fiduciary standard for advisors is introduced?
                      • Figure 6: Agreement with attitudinal statement related to trust, February 2016
                    • What it means
                    • The Market – What You Need to Know

                      • Canada’s population is expected to age in the coming years
                        • The population is growing and ethnically diverse
                          • Canada’s economy starts well in 2016
                            • CRM2 and its impact
                            • Market Factors

                              • Canada’s population is expected to age in the coming years
                                • Figure 7: Population aged 65 years and over in Canada, historical and projected (% of total), 1971-2061
                                • Figure 8: Projected trends in the age structure of the Canada population, 2014-19
                              • Women outnumber men in Canada
                                • The population is growing and ethnically diverse
                                  • Growth of the LGBT community
                                    • Business sentiment improves but remains subdued overall
                                      • Canada’s economy starts well in 2016
                                        • Wage gap declines but women still earn less than men
                                          • CRM2 and its impact
                                          • Key Players – What You Need to Know

                                              • Wealthsimple reaches $400 million in assets
                                                • Bank of Montreal starts robo-advisor offering its ETFs
                                                  • Nest Wealth partnership with Metroland Media
                                                    • Robo-advisory services in the US dominated by two major brand names
                                                    • Who’s Innovating?

                                                        • Wealthsimple reaches $400 million in assets
                                                          • Bank of Montreal starts robo-advisor offering its ETFs
                                                            • Nest Wealth
                                                              • WealthBar
                                                                • ModernAdvisor
                                                                  • CIBC offers a digital advice channel
                                                                    • Innovations from across the border (US examples)
                                                                      • Robinhood-free discount brokerage
                                                                        • Acorns Grow Inc.
                                                                          • Fidelity Go
                                                                          • Marketing Campaigns

                                                                              • Wealthsimple’s Super Bowl campaign
                                                                                • Nest Wealth partnership with Metroland Media
                                                                                  • WealthBar sets up a coffee station in Vancouver
                                                                                    • Selected Mintel Comperemedia campaign
                                                                                      • Desjardins Financial Planning Consultation
                                                                                        • Figure 9: Desjardins direct mail financial planning invitation, May 2015
                                                                                      • Offer: to build a unique strategy adapted to achieve the financial goals
                                                                                        • US Robo-Advisory campaigns
                                                                                          • Vanguard Personal Advisor
                                                                                            • Figure 10: Overview of Vanguard personal advisor services creatives, April 2016
                                                                                          • Schwab Intelligent Portfolios
                                                                                            • Figure 11: Overview of Schwab intelligent portfolios creatives, April 2016
                                                                                        • The Consumer – What You Need to Know

                                                                                          • Around half of Canadians have used some type of financial advisor/planner
                                                                                            • Bank advisors most commonly used
                                                                                              • Majority of clients unaware of the specifics of advisor compensation
                                                                                                • Older and higher-income Canadians trust independent financial advisors most
                                                                                                  • Satisfaction levels are high particularly among older women
                                                                                                  • Use of Financial Advisors

                                                                                                    • Around half of Canadians have used some type of financial advisor/planner
                                                                                                      • Figure 12: Use of financial advisor, February 2016
                                                                                                    • Usage is directly proportional to age
                                                                                                      • Figure 13: Use of financial advisor, by age, February 2016
                                                                                                    • CHAID Analysis: Sub-groups more likely to use a financial advisor
                                                                                                      • Methodology
                                                                                                        • Homeowners strongly over-index on using financial advisors
                                                                                                          • Figure 14: Use of financial advisor – CHAID – Tree output, February 2016
                                                                                                        • Homeowners aged 65+ over-index on usage of financial advisors
                                                                                                          • Figure 15: Use of financial advisor – CHAID – Table output, February 2016
                                                                                                        • Insufficient assets cited as the main reason for not considering an advisor
                                                                                                          • Figure 16: Reasons for not using a financial advisor, February 2016
                                                                                                        • Older non-users more likely to self-manage investments
                                                                                                          • Figure 17: Preference for self-managing investments, by age, February 2016
                                                                                                        • Women non-users are more likely to cite insufficient assets while men are more likely to self-manage investments
                                                                                                          • Figure 18: Reasons for not using an advisor, by gender, February 2016
                                                                                                      • Type of Financial Advisor Used

                                                                                                        • Bank advisors most commonly used
                                                                                                          • Figure 19: Type of financial advisor used, February 2016
                                                                                                        • Older consumers more likely to use brokerages and independent advisory firms
                                                                                                          • Figure 20: Type of advisor used, by age, February 2016
                                                                                                        • Younger and Chinese Canadians more open to using online financial advice
                                                                                                          • Figure 21: Attitudes towards online financial advice, February 2016
                                                                                                        • Around a quarter of consumers have chosen their advisor due to a referral
                                                                                                          • Independent financial advisors more likely to be chosen due to referrals
                                                                                                            • Figure 22: Agreement with statement on choosing advisor due to a referral, by type of advisor used, February 2016
                                                                                                        • Advisor Compensation

                                                                                                          • Majority of clients unaware of the specifics of advisor compensation
                                                                                                            • Figure 23: Attitudes towards advisor compensation, February 2016
                                                                                                          • Credit union customers more likely to be against commission-based compensation
                                                                                                            • Figure 24: Agreement with attitudinal statements on financial advice, February 2016
                                                                                                          • Will the introduction of CRM2 trigger a shift towards non-commission-based compensation models?
                                                                                                          • Usefulness and Value-add

                                                                                                            • Advised clients are more convinced about their value
                                                                                                              • Figure 25: Attitudes towards value of advisors, February 2016“
                                                                                                            • Low awareness of educational and licensing requirements
                                                                                                              • Figure 26: Attitudes towards regulation of financial advisors, February 2016
                                                                                                            • Around one in 10 advised clients have switched advisors
                                                                                                            • Trust and Satisfaction

                                                                                                              • Older and higher-income Canadians trust independent financial advisors most
                                                                                                                • Figure 27: Most trusted sources of financial advice, February 2016
                                                                                                              • Trust in independent advisors increases with age
                                                                                                                • Figure 28: Trust in sources of financial advice, significant differences, by age, February 2016
                                                                                                              • Lower levels of trust linked to a lack of fiduciary standard in Canada
                                                                                                                • Figure 29: Agreement with attitudinal statement related to trust, February 2016
                                                                                                              • Satisfaction levels are high particularly among older women
                                                                                                                • Figure 30: Satisfaction with financial advisors, February 2016
                                                                                                              • Independent financial advisors rank highest in satisfaction
                                                                                                                • Figure 31: Overall satisfaction, by source of financial advice, February 2016
                                                                                                                • Figure 32: Satisfaction with attributes, by source of financial advice, February 2016
                                                                                                            • Appendix – Data Sources and Abbreviations

                                                                                                              • Data sources
                                                                                                                • Consumer survey data
                                                                                                                  • Consumer qualitative research
                                                                                                                    • Abbreviations and terms

                                                                                                                    Companies Covered

                                                                                                                    To learn more about the companies covered in this report please contact us.

                                                                                                                    Consumers and Financial Advice - Canada - May 2016

                                                                                                                    US $3,995.00 (Excl.Tax)