Study shows top firms excel in meeting client needs, while many struggle to go beyond basics
The J.D. Power 2024 Canada Wealth Management Digital Experience Study reveals that while many Canadian wealth management firms meet basic digital functionality standards, few deliver the personalized and proactive guidance clients increasingly expect.
Most full-service apps and websites (91 percent and 88 percent, respectively) and self-directed platforms (90 percent for apps and 88 percent for websites) provide foundational features, such as clear organization and modern design.
However, only 11 percent of full-service apps and 6 percent of self-directed apps offer experiences that include proactive guidance and tools to help users set and achieve financial goals.
Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power, noted that most wealth management apps and websites meet basic functionality requirements, such as being visually appealing and organized.
However, he pointed out, “few are leveling up to offer the kinds of digital experiences clients expect from their wealth management firms.”
Self-directed clients increasingly demand personalized digital tools, with 34 percent strongly agreeing that wealth management platforms should help them meet their financial goals.
However, 40 percent of these users believe their firms fall short, a figure significantly higher than the 30 percent reported in the US. This unmet demand highlights the challenges firms face in bridging the gap between functionality and personalization.
Satisfaction levels are considerably higher when digital platforms go beyond the basics. Clients reported average scores nearly 100 points higher on a 1,000-point scale when their digital experiences incorporated both foundational and enhanced features.
Perceptions of data security also significantly impact satisfaction. Among full-service clients, satisfaction scores dropped by 141 points when concerns about the security of personal information arose. Similarly, self-directed clients reported a 143-point decline under the same circumstances.
Jon Sundberg, senior director of digital solutions at J.D. Power, emphasized the disconnect between firm messaging and digital delivery.
“The messaging of wealth management firms has clearly moved in a direction of education, empowerment and guidance, but if the functionality of digital tools doesn’t match the messaging, J.D. Power sees a disconnect in the customer experience,” he said.
Firms that align their tools with messaging experience substantially higher satisfaction and greater brand loyalty.
The study also ranked wealth management platforms based on client satisfaction. BMO led the full-service category with a score of 753, followed by TD with 746 and Desjardins with 736.
In the self-directed category, Wealthsimple ranked highest with a score of 754, with RBC scoring 719 and CIBC 696. BMO credited its digital-first strategy and recent platform improvements for the recognition.
Kevin Barnes, North American head of BMO Private Wealth, praised his team's efforts in modernizing the platform over the past two years, emphasizing a digital-first approach.
He stated, “We are incredibly proud of our colleagues for their dedication to improving and modernizing our Private Wealth platform over the last two years.”
Barnes also highlighted their commitment to enhancing the platform, adding, “We will continue to improve the ease and simplicity of our platform to meet our clients’ evolving needs.”
