Exclusive: Advisors reveal satisfaction with firms, tech progress

There is a growing satisfaction gap between those advisors satisfied with their dealers’ tech stack and those who aren’t. That’s the core takeaway from IG Wealth Management’s second installment of their Advisor Perception Industry Study. The survey of over 300 CIRO-registered and independent Canadian advisors found that while tech enablement was identified by the largest cohort of respondents as their top priority, 59 per cent rated their dealer support for AI and emerging technology as fair or worse.

Brent Allen, Head of Sales and Distribution at IG Wealth Management, believes that this high degree of advisor dissatisfaction is just the latest in a slew of signals that the pack is dividing between those wealth management firms on the cutting edge of tech and those lagging behind. He notes the recent example of the US-based Hazel tool, which demonstrated enough promise to wipe out billions in wealth management firms’ market capitalization. Those dealers ahead of tech, he notes, recovered from that sell-off. Those lagging did not. The survey shows, in his view, that advisors are seeing this gap opening up as well.

“[Advisors] can see the future because they get it advertised to them, and they can piece it together from their daily use of other applications that already have that convenience, transparency, and ease of use,” Allen says. “Generally, financial dealer technology has not kept up at the same pace as those user apps people use every day. The gap between what you have in your personal life and your business creates some tension.”

So much of this dissatisfaction comes down to execution and experience. 48 per cent said they weren’t satisfied when new platforms are rolled out. 47 per cent said they don’t think their platforms are user friendly. 45 per cent said their firms platforms fall short in providing a full view of their clients’ financial picture. Around half of the advisors surveyed are dissatisfied with what their dealers have done on tech so far.

While 91 per cent of respondents said AI is a powerful tool for their business, they also expressed some ongoing concerns. Around one third of respondents had concerns about AI’s impact on compliance. Perhaps more notably, two thirds of respondents said they thought AI could negatively impact the advisor-client relationship.

Allen’s view is that while AI might ‘solve for’ the simplest advisor-client relationships and choices, ideal clients are inherently more complex than an AI can handle. While the AI can make service more efficient and help both advisors and clients better digest information, Allen believes the human element cannot be fully replaced.

While the survey didn’t exactly answer why so many advisors saw AI as a threat to the relationship, Allen noted that authenticity in communication also matters in these relationships. While AI-generated text is often hard to distinguish from something written by a human, the human capacity to notice AI-generated copy has improved. Allen notes, anecdotally, that those signs of AI structure in emails with its sub headers, bullet points, and em-dashes can now be seen as inauthentic. While he stresses the value AI can add to an advisor-client relationship, he acknowledges how an over-reliance on AI can put that at risk.

Execution, again, lies at the core of success. Just adding AI on top of legacy systems may simply result in another expensive tool that muddies the work advisors are doing. In noting how some dealers in Canada have managed to satisfy their advisors, while others have lagged, Allen noted how much legacy tech can hamper progress, especially when the tech stack is built piecemeal from dozens of providers.

When tech tools don’t integrate well, communicate with each other, or operate in coordination with new generative AI tools, the process can become frustrating and difficult for everyone involved. Simple conveniences like single sign on and API are essential to making this tech work. One of the key points of frustration that Allen sees is in a lack of connectivity and believes that achieving that connectivity can help a great deal.

Dealers looking to make these investments are also in an unenviable place, as they try to meet the hype that exists around AI tools.

“The hype is real, but the tools available are not,” Allen says. There is not a solution out there today that you can just go buy. This one particular product for your advisor and life will get so much better. That just doesn't exist today, [but it] doesn't mean it won't in the future, and you want to be mindful of that from a strategic point of view.”

All those additions and integrations take time, money, and vision. Allen notes that IG started its tech modernization process five years ago and while they invested hundreds of millions in their new tech, they’re seeing significant improvement as a result. The process is painful, but he stresses that with the right investments and intentional choices, dealers will be able to give their advisors that more fulsome view of their clients’ lives.

For dealers who haven’t made the same kind of focused, strategic tech investments, Allen rests on the old adage that ‘the best time to plant a tree was 25 years ago, the second best time is today.’ Without rushing or succumbing to shiny object syndrome, Allen believes that dealers need to accelerate their plans on tech an AI integration, to explore ideas and vendors that can serve them well, and to see where this tech can actually help reduce costs and add efficiency. Be ready for things to change, too, in this evolving space.

“Canada is not a big market. So my view on technology is we need to support each other. Yes, we're all competing for similar clients and high net worth, and this wealth transfer that's happening and business monetization,” Allen says. “I kind of look at it as like motorsport, if everyone gets the same car, then it's not the car, it's the driver. And then that really comes down to strong personal relationships, delivering on your promise.”