Study shows clients want proactive guidance, but most apps only deliver basic functionality
The J.D. Power 2024 Canada Wealth Management Digital Experience Study reveals that most firms excel in delivering functional and organized apps and websites but struggle to meet client demands for personalized, proactive experiences.
This highlights a broader transformation in the Canadian wealth management industry, which is shifting its focus from transactions to financial empowerment and freedom, driving expectations for personalized guidance through digital tools.
Craig Martin, executive managing director and global head of wealth and lending intelligence at J.D. Power, highlighted that most wealth management apps and websites meet basic functionality requirements, such as being visually appealing and well-organized.
However, he noted that “few are leveling up to offer the kinds of digital experiences clients expect from their wealth management firms.”
He highlighted that only a small number of firms have successfully integrated proactive guidance and financial goal-setting tools into their platforms while maintaining alignment with their brand messaging.
The study shows most full-service apps (91 percent) and websites (88 percent), as well as self-directed apps (90 percent) and websites (88 percent), achieve foundational functionality.
These platforms present information logically and deliver a modern, clean aesthetic. However, only 11 percent of full-service apps and 6 percent of self-directed apps offer enhanced features, such as goal-setting capabilities or proactive financial guidance, which clients value highly.
Self-directed investors increasingly expect digital tools to help them meet their financial goals. Among these clients, 34 percent strongly agree that their wealth management firm's digital tools should provide this support.
Despite this expectation, 40 percent do not strongly agree that their firms are meeting this need, a gap that is more pronounced in Canada compared to the United States, where 30 percent express similar dissatisfaction.
Clients report higher overall satisfaction when digital platforms exceed basic functionality. Satisfaction scores rise nearly 100 points on a 1,000-point scale when platforms combine foundational performance with intuitive experiences.
Security concerns, however, significantly impact satisfaction. Scores drop by 141 points among full-service clients and 143 points among self-directed clients when they perceive personal information as insecure.
Jon Sundberg, senior director of digital solutions at J.D. Power, explained, “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.”
Among the firms evaluated, BMO ranks highest in customer satisfaction for full-service wealth management digital experiences, achieving a score of 753.
TD follows with 746, and Desjardins places third with 736. In the self-directed category, Wealthsimple leads with a score of 754, followed by RBC at 719 and CIBC at 696.
BMO attributes its success to its commitment to digital innovation.
Kevin Barnes, North American Head of BMO Private Wealth, highlighted the platform's improvements over the past two years, emphasizing its enhanced digital capabilities.
He noted, “This recognition reflects BMO Private Wealth's significantly enhanced digital capabilities, including on-demand performance reporting and market-leading equity research.”
