DALBAR 2020 Quantitative Analysis of Investor Behavior

DALBAR 2020 Quantitative Analysis of Investor Behavior

As 2020 progresses, there is no doubt that the COVID-19 pandemic and its impacts are unlike anything DALBAR – or the world, for that matter – has ever experienced.

The global health crisis has taken a toll on the economy and stock markets, and investors are now left with a feeling of uncertainty with regards to how they should respond with their assets.

When it comes to financial decisions, timing can be everything. DALBAR has just released the 26th annual Quantitative Analysis of Investor Behavior (QAIB) report, to help financial advisors understand the effects of investor decisions to buy, sell, and switch […] Read more

Coronavirus and the Financial Services Contact Center

Coronavirus and the Financial Services Contact Center

As coronavirus (COVID-19) continues to affect the financial services sector, it’s a good time to look at how the industry is able to adapt to the changing business landscape. From March 18th to March 20th, we held a town hall to look at the impact of COVID-19 on contact centres for financial services. At the time of the survey, two-thirds of the offices surveyed were still open, with measures being taken to ensure safety, such as physically spacing contact centre representatives (CSRs), additional sanitization, and asking CSRs with remote capability to work from home.

Although recent years have seen a trend […] Read more

Robo-advisers beat these human advisers – sorry, salespeople – any day

Robo-advisers beat these human advisers – sorry, salespeople – any day

By Rob Carrick, February 13, 2020

Robo-advisers are struggling to find customers and one explanation is that people prefer the human touch when getting financial help.

But who are these humans we turn to for advice in understanding the complexities of investing, retirement and other matters? A new study from the industry consulting firm Dalbar Inc. shows that a lot of them are just salespeople, who want to sell mutual funds and guaranteed investment certificates.

Brilliant people – smart, prepared, sympathetic and insightful – work in the financial planning and the investment advice worlds. But they’re outnumbered by legions of people who […] Read more

RBC Ranks #1 Among Big Five Banks Supporting Canadians with Retirement

RBC Ranks #1 Among Big Five Banks Supporting Canadians with Retirement

(Toronto, ON. February 5, 2020) DALBAR Inc., the financial community’s leading independent expert for evaluating, auditing and rating business practices, customer performance, product quality and service, released findings from its inaugural National Retirement Study. A first of its kind, the study was undertaken to assess how well the Big Five Banks handled retirement conversations through its retail branch network. A secondary evaluation was conducted with additional banks, credit unions, and regional financial institutions to round out the study. RBC ranked #1 amongst the Big Five Banks providing the strongest level of support to Canadians who are worried about their retirement […] Read more

2019 DALBAR Retirement Study: How Financial Advisor Designations can Affect Customer Experience

2019 DALBAR Retirement Study: How Financial Advisor Designations can Affect Customer Experience

When providing a service, the perception of preparedness can play a crucial role in customer satisfaction. This fact is highlighted in the recent 2019 DALBAR Retirement Study, which analyzed customer interactions with advisors at several financial institutions during retirement planning appointments.

The findings of this study show that a variety of factors can have an impact on a customer’s overall perception of an interaction, including how prepared an advisor seems when coming into the appointment, how confident they are in explaining the material, and the potential impact advisor designation can have. This study provides a comprehensive examination of these factors, as […] Read more

The Asset Allocator: Dalbar’s Investor Panic-Relief Tool (Podcast)

The Asset Allocator: Dalbar’s Investor Panic-Relief Tool (Podcast)

By SA For FAs, December 3, 2019

Summary

For a quarter of a century, Dalbar has highlighted the problem of poor investor performance, fueled by return-chasing and panic selling; now it wants to offer a practical solution. Dalbar has developed a panic button targeting financial advisors, and interested individual investors, aimed at preventing financial suicide. Its “Investor Panic Relief Tool” is designed to help advisors help their clients at the point of panic, providing a meaningful and appealing alternative to selling. The tool presents a put option as inferior to doing nothing, but as superior to selling, and backs that up with dollars-and-cents calculations.

Listen on the […] Read more

Avoiding the Cost of Panic

Avoiding the Cost of Panic

by Louis S. Harvey, 12/2/19

Investors lose massive amounts due to panic selling in down markets. More can be done about this perennial problem.

This article identifies one critical action that can be taken to stem panic-driven losses. That action is based on a full understanding of the timing, cause and prudent use of financial instruments that can avoid much of the loss.

To appreciate the solution, it is essential to agree on what the problem really is.

Understanding the problem

Understanding begins with knowing when the losses occur.

More than 70% of losses over the last 35 years originated in 10 very short crisis periods. […] Read more

2020 Trends & Best Practices in Investor Statements: How Key Statement Features Can Help Acquire and Retain Clients

2020 Trends & Best Practices in Investor Statements: How Key Statement Features Can Help Acquire and Retain Clients

Are your current financial statements meeting the needs and expectations of your clients? This is an important question to ask, especially when it comes to staying at the forefront of industry trends and best practices. To help your institution effectively address the needs of clients, DALBAR is conducting a detailed analysis and ranking of financial statements in the 2020 Trends and Best Practices in Investor Statements report. Customers have been shown to value up-to-date content and ease of navigation, and the findings of this analysis will provide exclusive insights into how your institution can benefit from the implementation of an […] Read more

DALBAR USA Study has the Potential to Change Conversations about e-Delivery

DALBAR USA Study has the Potential to Change Conversations about e-Delivery

In today’s digital age, more businesses and service providers than ever are opting for electronic solutions when it comes to communicating vital information. Financial service firms are no exception, as paperless financial solutions (commonly known as e-Delivery in the financial services space) are becoming an increasingly commonplace way to communicate with consumers. DALBAR’s first-ever Online Search Behavior Analysis provides interesting insights on who is searching for electronic delivery of their financial statements, and how the searches are taking place. These insights have the potential to fundamentally alter the way financial services firms talk about their e-Delivery solutions.

Currently, there is a […] Read more

Reliable Advice on Retirement

Reliable Advice on Retirement

It’s easy to find information about strategies, savings, mutual funds, and a plethora of other options to plan for retirement. In fact, the financial space is teeming with suggestions. Add into the mix an increasing range of tech-savvy solutions, and it’s clear that, to find the right retirement advice, a knowledgeable and experienced advisor is needed.

Of course, financial institutions already have procedures in place to help individuals interested in planning for their retirement, but how effectively do the advisors of these programs address client concerns? Can a comprehensive retirement plan be created for someone without previous experience in saving or […] Read more