Wealth Management Goes Mobile as Younger Canadians Invest Through Apps

J.D. Power has released the latest edition of its Wealth Digital Experience Study, which finds that digital and mobile technology continues to deepen penetration throughout Canada’s financial sector.

Flipping the table on stuffy brick-and-mortar institutions are mobile apps that have “become the window to the wealth management client experience for clients of every type, creating opportunities and challenges for wealth management firms in Canada,” according to J.D. Power.

“Historically, digital wealth management tools have been focused on serving younger and more active do-it-yourself investors,” explains Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power.

“But that has changed in recent years,” he continues, “with clients of all ages and investor types routinely engaging with their wealth relationships digitally.”

Gen Y and Gen Z clients still show the strongest preference for digital as their primary communication channel for advice, planning, and service, while Gen X and Boomer clients still prefer human interaction for advice and planning, the report found—but the trend is headed in only one direction.

Fintech apps such as Wealthsimple thus appear to represent the future of banking and investing in Canada, especially as even incumbent banks seek to increase their digital offerings.

“With increased market volatility and uncertainty, clients want to be reassured about their financial situation and have confidence in their plan,” said Martin. “Digital is a crucial engagement channel to do this, and firms need to carefully consider the future role it will play in how they serve clients of all types.”

Going digital is not enough though—mobile matters too: J.D. Power’s report concluded that overall average satisfaction scores for both self-directed and full-service wealth management mobile apps are higher than the average scores for both self-directed and full-service wealth management websites.

In June, CIBC’s mobile banking app received the highest ranking in customer satisfaction according to J.D. Power’s Canada Banking Mobile App Satisfaction Study.