HSBC 2018 Excellence Seal DALBAR Announcement

HSBC 2018 Excellence Seal DALBAR Announcement

Direct brokerages are constantly competing to win over increasingly demanding and savvy self-directed investors. While the lowest fees or slick new platform features grab the headlines, when complicated issues arise, having a competent and engaged human being to talk to goes a long way. The traditional contact centre remains a critical service channel for direct brokerages.

DALBAR is pleased to award HSBC InvestDirect the 2018 Telephone Service Seal of Excellence. HSBC InvestDirect chose DALBAR to independently audit the quality of its contact centre interactions with direct brokerage investors. These interactions were evaluated throughout the year against detailed criteria covering all aspects of the customer experience. In order to qualify for […] Read more

Are Mortgage Stress Tests Putting the Economy at Risk?

Are Mortgage Stress Tests Putting the Economy at Risk?

For many Canadians in major markets such as Toronto or Vancouver, housing affordability is a hot button issue. In response to escalating house prices and levels of consumer lending, the Government of Canada in 2018 implemented the B-20 stress tests, which required banks to test a borrower’s ability to make mortgage payments at 200 basis points (2%) above their mortgage rate.

While there has been a noticeable slowdown in housing sales, there’s another sector of the lending ecosystem which has benefited greatly from the B-20 stress tests: private mortgage lenders.

According to data from the Bank of Canada in November 2018, private lenders in Toronto have seen an increase in the […] Read more

You Guys Spoke Up About Your Recent Poor Service Experiences!

You Guys Spoke Up About Your Recent Poor Service Experiences!

We asked everybody last week about their poor service experiences and you guys certainly voiced your opinions! Now we’d like to share some of those results with you…

A lot of people are not getting good food service! Restaurants, beverage/coffee shop, & fast food accounted for over a THIRD of all surveyed complaints. Other industries receiving a lot of complaints:

Financial services Grocery stores Big Box Retailers (e.g. Best Buy, Walmart)

Most encounters with poor service are in-person

Top three service complaints are:

Rudeness (53%) Slow service (41%) Product/service did not meet expectations (38%)

Clearly many organizations are not living up to your expectations of service!

We’d like to thank you for your honest feedback. […] Read more

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