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LATEST THINKING

Powering hybrid
advice in Canada

Combining humans and robots in wealth management to
better serve Canadian investors

OVERVIEW

A recent Accenture investor study revealed that Canadians showed an openness to hybrid wealth advisement. In addition to their desire for transparency and low fees, four of 10 said they do not “get what they pay for” when using a traditional wealth advisor, leading them to explore other options such as robo-advice self-investing. And seven out of 10 told Accenture they already use at least one digital tool or service when investing.

The implications for wealth management firms doing business in Canada are clear. Hybrid advice—combining humans and robots—could be a way forward, not only to retain current clients, but also to help develop relationships with digital natives just now coming into their own money.

Powering Hybrid Advice in Canada

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Infographic: Powering Hybrid Advice in Canada

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KEY FINDINGS

Digital is changing how investors perceive “advice.” While robo-advice seems to be working for general advisement, investors will still require human advisors more so for more complex situations. But 30 percent of investors are open to using non-traditional companies like Google for basic financial advice.

Clients want the flexibility of hybrid advice. Participants in our survey told us that if a firm does not have the right digital tools, it won’t make their short list. But, when dealing with issues that require a customized approach, investors still indicate they want the human touch. Six in 10 Canadian investors still prefer a human as a source for new wealth management ideas.

The hybrid model can also deepen client engagement. Investors in the hybrid model are significantly more likely to have sought and received financial planning assistance than investors in any other model. They are also more likely to have talked to their advisor about their children’s financial needs (72 percent versus 53 percent for traditional advisor model).

65%
of clients already
use basic digital
tools for account
transactions and
summaries

SNAPSHOT OF A CANADIAN INVESTOR

90% do not consider themselves aggressive when investing

63% say retirement is a prime concern

50% view keeping money safe as a priority

49% of boomers are cautious about fees

RECOMMENDATIONS

Wealth management firms need to negotiate the mix of humans and robots now. Given the changing preferences of Canadian investors and the rise of non-traditional competitors, wealth management firms should shift resources to a hybrid model. A few key considerations:

  • Begin with building blocks to a hybrid model. Key questions include: What role will robots play? What about humans? What is the best pricing model?

  • Get serious about a digital platform, investing now.

  • Invest in digital talent, which will be a hot commodity for the foreseeable future.

  • Develop a partner ecosystem that fills your firm’s gaps.

Canadian investors are showing wealth management firms what they want. Acting now to become a hybrid advisory firm could increase your chances of staying competitive in a changing market.

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