Digital transformation in wealth management – The race is on

With another Formula 1 season just weeks away, I’m already looking forward to seeing the best drivers in the world compete in the Canadian Grand Prix in Montreal this June.

While some may deem it a stretch to compare financial advisors to those who drive at top speeds of 372 km/h, the two industries do share one thing in common – the difference between winning and losing is increasingly being decided by how teams use new technology. ?????

Technology adoption accelerates ?

In recent years, F1 teams have been adopting digital tools and software systems at a rapid pace to assist with everything from car design, to testing, to strategy development, to the automating of repetitive tasks. Max Verstappen, who has captured four-straight drivers’ championships racing for Red Bull, receives cloud infrastructure and AI expertise from Oracle, and Google has a similar partnership with McLaren.

The Canadian wealth management industry is also in midst of a digital transformation thanks to the emergence of exciting new technologies and rapidly shifting demographics that will see Gen X and Millennials inherit $1 trillion by 2026. Much like racers benefitting from technological enhancements to drive race strategy, advisors and clients alike stand to benefit from our industry’s digital transformation through highly customized investment strategies, enhanced security and trust, and greater transparency.

Time to get off the starting line

To deliver the type of elevated technology experiences that this new breed of Canadian investors demand, advisors need to put the pedal to the metal if they want to stay ahead of industry trends and client expectations. According to the J.D. Power 2024 Canada Full-Service Investor Satisfaction Study, most advisors are still not fully explaining their firm’s digital capabilities to clients.

Whatever the reason to delay adopting technology within one’s practice, those that lag behind will be putting themselves and their business at a disadvantage. Because, according to that same J.D. Power survey, when advisors communicate about their digital tools to clients, client satisfaction increases 2.8x and advisor referrals increase by 2x.

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How we’re driving digital evolution

iA Wealth’s leadership team has made digital evolution one of our firm’s top priorities, with the ultimate goal of providing a best-in-class solution for our advisors and their clients.

Here are five principles guiding the development of industry-leading digital advisor and client experience, and our progress to date:

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1. Advisor engagement and feedback are core values

We’re in constant communication with our advisory teams across Canada to ensure we’re developing a sophisticated but easy-to-use digital ecosystem that drives client satisfaction, empowers advisors, and facilitates their ability to run their independent practice as they see fit.

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2. Maintain an advisor- and client-centric mindset

Just as you couldn’t put an average Joe behind the wheel of a Ferrari and expect anything but a fiery crash, we can’t lose sight of the tenet that humans should remain at the heart of wealth management. Clients want customization, automation, transparency, but delivered by a human they can trust – not a device that doesn’t understand their goals and aspirations. While technology is transforming the role of investment advisors, there’s still plenty of room to maintain the human relationships that make the business special.

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3. Provide insights that drive business growth for advisors.

iA Private Wealth’s AX360 platform provides advisors with a comprehensive view of their clients and book of business with customizable business filters that enable advisors to track net new clients, money from existing clients, and market variation. This way, businesses can determine very quickly, at the advisor or team level, if they’re proactively growing or if they're reliant on the market for growth and need to adjust course.

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4. Streamline operations to create efficiencies and improve productivity.

We are dedicated to enhancing productivity across our businesses by implementing advanced technologies such as GenAI and CRM systems like Salesforce that streamline operations. These tools will empower both advisors and asset managers to quickly access vital information, respond efficiently to client inquiries, and manage documentation with ease. ?As a result, they can devote more time to building relationships and growing their businesses.

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5. Offer advisors maximum flexibility through data and open architecture.

We allow advisors to select their own CRM and financial planning tools, providing advisors with maximum flexibility to build out their own client experience and determine the best tool to provide that experience.

As we gear up for another exhilarating season of Formula One, it's clear that the drive towards digital transformation in wealth management is just as critical as the precision and technology that fuel the fastest racing teams. At iA Wealth, we recognize that embracing innovation is not just an option; it’s a necessity to meet the evolving expectations of today’s investors. By prioritizing advisor engagement, maintaining a client-centric focus, and harnessing advanced technologies, we are committed to not only enhancing the advisor-client relationship but also fostering a new generation of wealth management practices.

The race is on, and as we rev up our engines for the journey ahead, we invite every advisor to join us in this transformative drive, where success is defined not only by speed but also by the strength of the connections we build through technology. Together, let's embrace the digital evolution and reshape the future of wealth management.