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) 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 who embrace this shift and proactively help their clients navigate complexity, while empowering them and delivering value, can transform this volatility into opportunity.”

Shifting trends in Canadian investor preferences

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.

Doubling up on service providers

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.

Virtual wealth management models are here to stay

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, Partner, Wealth Asset Management Lead for Quebec region. “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.”