NEW YORK and TORONTO, Aug. 18,
2020 /PRNewswire/ -- Financial advisors across
the United States and Canada report fundamental changes to client
relationships and business activity as they grapple with the
lasting effects of the Covid-19 pandemic, according to a new survey
from Broadridge Financial Solutions, Inc. (NYSE: BR), a global
Fintech leader. Seventy-seven percent of financial advisors say
they have lost business as a result of not having the appropriate
technology tools to interact with clients, while 87% report
sustained changes in investor communication and engagement. Of
financial advisors who reported losing any business, they on
average lost a fifth (21.7%) from their book.
"Financial advisors are reliant on their firms for technology
that allows them to best serve their clients wherever they may
physically be and whatever market conditions are like that day,"
said Michael Alexander, President of
Wealth Management at Broadridge Financial Solutions. "In the
fallout from the pandemic, wealth firms are going to face increased
pressures to invest in modernizing their advisor technology or risk
losing their advisors to firms that already have next-generation
wealth platforms."
Technology Tools and Frequent Communication Vital During
Pandemic
Amid the pandemic, 63% of North American financial advisors
report that they generally communicate with clients on at least a
weekly basis. A surprising generational difference was uncovered in
this practice: over half (51%) of Millennial financial advisors
communicate with their clients daily, while 62% of Baby Boomer
financial advisors communicate with clients at a frequency of
monthly or less.
Eighty-nine percent of financial advisors report that their
desktop software and firm-provided technology tools became more
critical during stay-at-home mandates. Across generations, 74% of
financial advisors wish their firm had access to better technology
tools, and 82% state that paperwork detracts from time spent
working with clients.
Half of financial advisors (51%) report that they often think of
leaving their current firm for one with better technology tools.
Financial advisors under the age of 40 are more likely to leave
their firms (59%) compared to those between the ages of 60-79
(32%).
Gaps Between United States and Canada Apparent as Advisors
Seek Support
When it comes to marketing support offered to advisors, there is
a stark difference between resources in the United States and in Canada. In the
United States, 95% of financial advisors report that they
have enough marketing support from their firms to grow their
practice, while only 59% of Canadian financial advisors say the
same. Fifteen percent of Canadian financial advisors report that
they get no marketing support from their firms whatsoever.
Financial advisors in the United
States are more likely to report that they are provided
tools for email marketing (69%), paid digital media promotion (61%)
and website creation (60%), compared to financial advisors in
Canada, who report 53%, 26% and
41%, respectively.
Only 17% of Canadian financial advisors are very satisfied with
the tools they are provided to interact with clients and prospects
over social media, compared to 67% of U.S. financial advisors.
While all U.S. financial advisors surveyed report that they use
social media to some degree for client interactions, 8% of Canadian
financial advisors do not use social media at all.
Financial advisors in the United
States were found to share more customized communications
with clients compared to their Canadian counterparts. U.S.
financial advisors routinely share ideas for new investment
vehicles with clients (57%) and a personalized analysis of existing
investment vehicles (51%). In Canada, financial advisors prioritize sharing
a comprehensive view of client accounts (59%) and money-saving tips
(41%).
"As wealth management firms across North America look to attract and retain
talent, they should be aware that one in two financial advisors
often think about leaving their firm to join one with better
technology," said Donna Bristow,
Managing Director at Broadridge Financial Solutions. "In
particular, Canadian firms have an opportunity to improve the
marketing and social media tools they provide to their financial
advisors in order to enable better digital communications, investor
engagement and opportunities for business growth."
Leveraging next-gen technologies is part of Broadridge's
investment in The ABCDs of Innovation® - AI, blockchain, the Cloud
and digital – helping clients understand and apply these
technologies by simplifying the complex to help them be Ready for
Next. For more information about Broadridge's Wealth Platform,
please visit
www.broadridge.com/financial-services/wealth-management.
For an interactive look at the findings in this press release,
please visit here
Methodology
This survey of 254 financial planners and advisors in
the United States and Canada was fielded in June 2020 by Research Knowledge and Insights, a
market research firm.
About Broadridge
Broadridge Financial Solutions, Inc. (NYSE: BR), a $4 billion global Fintech leader, is a leading
provider of investor communications and technology-driven solutions
to banks, broker-dealers, asset and wealth managers and corporate
issuers. Broadridge's infrastructure underpins proxy voting
services for over 50 percent of public companies and mutual funds
globally, and processes on average more than U.S. $7 trillion in fixed income and equity securities
trades per day. Broadridge is part of the S&P 500® Index and
employs over 11,000 associates in 18 countries.
For more information about Broadridge, please visit
www.broadridge.com.
Media:
Tina
Wadhwa
Broadridge Financial Solutions
+1
212-973-6164
tina.wadhwa@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.