Banks Miss Opportunities with Mass Affluent Newcomers to Canada

Banks Miss Opportunities with Mass Affluent Newcomers to Canada

(Toronto, ON. December 5, 2018) DALBAR Inc. announced the release of its 2018 Newcomers to
Canada: Retail Branch Experience study. A follow-up to an earlier 2014 Newcomers study, this year’s
study was undertaken to identify trends and best practices in retail branch experiences for
Newcomers to Canada with mass affluent backgrounds. Seven Canadian banks were tested, BMO,
CIBC, RBC, Scotiabank, TD, HSBC, and National Bank. Newcomers were required to open a chequing
account and apply for a credit card, two important banking products to own upon arriving in Canada.
DALBAR found no clear winners amongst the seven banks. Similar to the previous study, bank
representatives remained reactive […] Read more

Studying Financial Services for Newcomers to Canada – 2018

Studying Financial Services for Newcomers to Canada – 2018

Having a healthy economy is key to the prosperity of any country. Immigration has historically been one of Canada’s important pathways to economic growth, and now, more than ever, it is a vital part of our continued development as a country.  For the financial services sector in general, and banking in particular, newcomers to Canada represent a strategic group with whom leading financial brands can gain market share.

Immigration last year accounted for two-thirds of Canada’s population growth of 1.2%. A large proportion of these newcomers were aged under 44, from mass affluent backgrounds, and predominantly from Asia, helping to boost […] Read more

DALBAR e-Delivery Benchmarks Study Highlights Challenges of Digitization for Financial Services Providers

DALBAR e-Delivery Benchmarks Study Highlights Challenges of Digitization for Financial Services Providers

As the financial services world continues down the road of digitization, one of the most challenging transitions that has arisen is in the realm of client or investor communications. Specifically, shifting from paper-based statements to an electronic format, known as e-Delivery, is proving to be an uphill journey for many financial service firms.

From account updates in the form of quarterly statements to transaction confirmations, tax documents, client correspondence and even annual reports and prospectuses, for individuals with investments, the “paper trail” can be extensive. For financial services firms, however, it can also be expensive.

The latest e-Delivery Benchmarks Study by DALBAR, […] Read more

Complacency Is Weakest Cybersecurity Link: Dalbar/ThinkAdvisor Study

Complacency Is Weakest Cybersecurity Link: Dalbar/ThinkAdvisor Study

Despite the increasing fear Americans have of personal and financial information being stolen, most financial-services firms have been complacent on updating or implementing state of the art — or even basic — cybersecurity technology, according to a recent study by Dalbar/ThinkAdvisor, “The State of Authentication in Financial Services.”

The most significant finding of the research is “generally how passive people are about the subject,” says Lou Harvey, president and CEO of Dalbar, a Boston-based independent financial-services market research firm.

“The more we’ve examined, the bigger the shock it is as [cybercrime] keeps growing. Look at the number of incidents,” he explained in an […] Read more

Are Advisors’ Cyberdefenses Strong Enough? Dalbar-ThinkAdvisor Survey Seeks Answers

Are Advisors’ Cyberdefenses Strong Enough? Dalbar-ThinkAdvisor Survey Seeks Answers

At least 12 major cybersecurity breaches affecting hundreds of millions of people took place in 2017. These major breaches were largely caused by hackers getting through inadequate or relaxed technical barriers.

The credit agency Equifax breach, finally made public in September, months after it happened, involved 143 million people, whose private data — from Social Security information to driver license numbers — were stolen.

In December, Alteryx, a data analytics firm that had purchased data from Experian — another large credit-reporting agency — exposed the data of some 120 million American households.

Today, experts estimate that personal information for more than half the […] Read more

Response to Edesess Article Published in Advisor Perspectives (10/9/2017)

Response to Edesess Article Published in Advisor Perspectives (10/9/2017)

If this was a first offense and had no visibility, I would laugh it off as uninformed rambling. But this is not the first offense and the article has gained some credibility by being carried in a respected publication.

This is not a laughing matter, but a serious threat to all who seek to act in the best interest of investors.

The underlying premise of the article as carried in its headline is that “Investors do not underperform their investments”. The article promotes the notion that investor performance is as good as it can be and gives an absurd reason for any […] Read more

Automate Advice, Not the Advisor

Automate Advice, Not the Advisor

Advisors have been using tools and technology for decades. Why, then, should the latest technology be any different? Robo-advice is no more than artificial intelligence (AI) technology[1] applied to financial advice. In contradiction to the thought that robos will replace the advisor, this technology can greatly enhance an advisor’s practice.

This threat is only real if the advisor hands clients over to AI. Many advocates of AI offer a business model in which low-value clients are handed off to the robo. This is a recipe for disaster, because today’s low-value clients have high-value family, friends and business relationships and probably will become high value […] Read more

DALBAR Canada Awards Best in Investor Statements for 2017

DALBAR Canada Awards Best in Investor Statements for 2017

(Toronto, ON August 22, 2017) DALBAR recognizes Dynamic Funds and MD Financial Management as the #1 ranked investor statements in the mutual funds and full service brokerage industry respectively. DALBAR’s Trends and Best Practices in Investor Statements Rankings evaluated a total of 22 statements for clarity, content and design.

This year 32% of statements evaluated earned an “Excellent” designation from DALBAR receiving more than 80 points out of 100. For the first time in two decades, client preferences for transparency coupled with regulatory pressures helped bring fee disclosures and personal rates of return to the forefront of investor statements.

“Investor statements are […] Read more

DALBAR Study Shows Trump Rally Left Average Investor Behind – New QAIB Study Examines the Roller Coaster Year of 2016

DALBAR Study Shows Trump Rally Left Average Investor Behind – New QAIB Study Examines the Roller Coaster Year of 2016

(Boston, MA. April 4, 2017) The year 2016 challenged investors’ resolve. Indices flirted with all-time highs while at the same time geopolitical events made fear an ever-present emotion investors had to manage.

DALBAR has been analyzing investor returns for over 20 years and found once again that the average investor did not realize returns that were on par with general market indices.  For the 12 months ended December 30, 2016, the S&P 500 index produced an impressive annual return of 11.96%, while the average equity mutual fund investor earned only 7.26%, a gap of 4.70 percentage points. This underperformance is most […] Read more

DALBAR ANNOUNCES ACTIVE VERSUS PASSIVE ANALYSIS – DOES PASSIVE PERFORMANCE OVERCOME INVESTOR BEHAVIOR

DALBAR ANNOUNCES ACTIVE VERSUS PASSIVE ANALYSIS – DOES PASSIVE PERFORMANCE OVERCOME INVESTOR BEHAVIOR

(February 27, 2017) DALBAR Inc. announced the release of its analysis of active and passive investing
and how these approaches affect the returns investors earn. Following its long tradition of looking
past theoretical investment statistics, DALBAR has measured the impact these investments have on
investors’ wallets.

DALBAR’s Investor returns show no clear winner.

Over the longer terms, active investments produced better results, reflecting the tendency for
investors to remain invested for longer periods. Shorter term results show passive investments
ahead, driven in part by the unexpected post-election run-up in the markets.
The explanations for why active investments caught up with the superior investment statistics of the
passive funds include […] Read more