from big ideas to practical results

From big ideas to practical results

Susan SilmaPractice Leader, Client & Industry Strategy

Issues impacting advisors

A new generation of investors ● Who are they? What do they expect?

Compliance CX ● Balancing conflicting demands

Digital technology● Embracing technology to enhance your practice

Communicating with clients● Talking to what matters

A new generation of investors

Women are the biggest emerging market in the

history of the planet.

Newsweek, 2010

Women investors: a financial force

Will control almost 50% of all financial wealth in Canada by 2026

IPC Private Wealth study on women and wealth 2017

Women typically inherit money twice

90% of women will be making the financial decisions at some point

Daughters: the rising wealth influencers

Women provide nearly 2/3s of elder care

2017 report from JAMA Neurology

Older women often end up controlling the investment assets

If they don’t want to manage the money, daughters usually step in

Women, unlike men, aren’t interested in amassing money for its own sake ...

Gail Blanke, motivational speaker and author, June 2017

they’re interested in what the money is for, what difference it will make,

and what joy it will bring to others.

Implications for relationships with women clients

80% of clients are couples—include both partners in conversations

Talk to women differently about money:

● Less focus on investment details, more on the impact to them

● Focus on how earnings (or losses) will affect their real-life goals and aspirations

Millennials are the next generation of decision

makers—they hold the key to tomorrow’s wealth.

Millennials: ignore them at your peril

1 Accenture Consulting, “The ‘Greater’ Wealth Transfer”, Aug 2017 2 SEI Advisor Network Survey, Dec 2016

$30 trillion—largest wealth transfer in history1

11% of High Net Worth and 18% of emerging affluent households2

Oldest millennials now mid-30s—peak earning years

Figuring out how to serve them is worth it

How to work with millennialsWhat they want

● Simplicity, transparency and more intuitive services● Digitally enabled tools

Shaping the future of financial services● At the forefront of massive change● Getting out ahead of that change will benefit your

entire client base and practice overall

An easy way to get started● The adult children of your baby boomer clients● Help them invest smaller amounts● Younger advisors on your team

Compliance CX

Balancing compliance with client experience (CX)

Regulations designed to help investors are pain points in client relationship

Be compliant without just blindly following the rules—be innovative

Firms can improve CX by:● Developing client-intimate programs● Rethinking their processes & forms● Leveraging digital technology

The more layers of friction you build into the experience,

the lower the adoption.

https://www.financial-planning.com/news/despite-fast-growth-mobile-wealth-management-stumbles


More is not more

“I don’t understand my new statements.”

They “can’t make heads or tails out of [their

statements].”

All clients want to know is “how much [they had in their accounts] last month

and how much [they] have today.”

Inves tment Executive Dealer’s Report Card 2018

What advisors can do

Think about the “why” of the regulations

Become friends with your compliance department

Avoid bumps in the client journey

Keep it simple—less is more

Push your firm to adopt digital

Digital technology

For the future of financial advice, the writing isn’t on the wall, it’s on the

mobile phone screen.



The rise of the “hybrid advisor”

If tech can do it better and faster than you, why not use it?

Reserve your energy for things that truly differentiate you

Make your clients feel valued

Automate everything else

Go digital or go home

Deloitte Digital Propensity of Wealth Management Consumers, 2016

75% of affluent investors find digital tools helpful in executing investments

Suggestions for advisors:Leverage technology for better, more personalized client engagement

Change up the solution you’re offeringe.g. Managed product or auto-rebalancing

Build your practice around the benefits of tech

Communicating with clients

Traditional vs. goals-based reporting approach

Traditional

Accounts

Goal Portfolios

Consolidated Reporting Household

Retirement

Individual TFSA RSP

Education

RESP Trust

Cottage

Joint

Accounts Individual TFSA RSP Trust Joint

Goals-based

RESP

Benefits of goals-based reporting

Increased client satisfaction, engagement and lower turnover

Opportunity for greater share of wallet and AUM

Platform for advisors to grow and scale with automation at the core

What clients expect from advisor conversationsGoals

● Help identifying and articulating● An action plan to meet them● Connect performance to goals

Value ● Consistently demonstrate value● Clear, proactive communication about fees

Client-centric

● Communicate through a client lens about what matters to them

Key takeaways for advisors

What if?

Every client appreciated the value you provide

You were able to do way more, with way less

You could be smarter, faster, bolder

Key takeaways: What’s YOUR brand?

Clients only have room for one message from you

Differentiate your brand—answer “Why you?”

Let clients know why they should:

● believe you

● remember you

Build your brand on something related to you

Key takeaways: How to compete effectively in a world of AI and robo-advisors

Technology isn’t your competitor; it’s your tool—use it to your advantage

Clients are still looking for a personal connection

Use tech tools to customize experiences for clients

Love your client: Listen actively. Welcome ideas. Understand deeply.

Key takeaways: What do your clients truly care about?

Don’t treat portfolio management as a performance derby

Connect reporting to a client’s life goals

Tell clients you add value—they’re willing to pay for it

Avoid the temptation to get too technical

Make clients feel valued—this solves for the value problem

from big ideas to practical results

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