There’s no doubt about it: advisors at most deposit-taking institutions are in high spirits. In Investment Executive’s 2008 Account Managers’ Report Card, the 294 advisors surveyed gave their firms increased ratings, with only a few low points along the way.
The reason for this year’s satisfaction after last year’s mediocre results isn’t entirely obvious. But, in a year packed with market turmoil, a credit crisis and clients wanting to stuff their money under their mattresses, financial services consumers may have looked to banks as beacons of stability. As a result, account managers may be finding some sunshine behind the dark clouds as clients’ flight to money market funds and GICs from equities or high-risk investments have helped advisors bolster their businesses.
Or is it simply that banks and credit unions are improving in areas that advisors have previously pointed out as weak?
Toronto-based Royal Bank of Canada for one, continues to listen to its advisors and has excelled because of it. It retained the top IE rating in the Report Card this year with increases over 2007 of at least half a point in six categories. It also garnered 13 first-place marks (see table on page 18), proving once again that its advisors consider Royal Bank to be one of the top banks in Canada at which to work.
“Royal Bank is very supportive in bettering the employee and getting you what you need to be the best account manager you can be,” says a Royal Bank advisor in British Columbia.
Adds a colleague on Prince Edward Island: “I have worked for three other banks, and this is the most trusted company in Canada.”
Royal Bank has about 8,000 advisors in three categories: account managers, senior account managers and financial planners. But regardless of their titles, all have the same goal in mind, says Michael Walker, vice president and head of branch investments for Royal Bank: that is, provide advice that is convenient and accessible for clients.
“The key area is really about how we deliver advice; that’s the stake that we are focusing on in the market,” Walker says. “We want to find out what people want to do with their lives and what their futures look like. From there, the advice and the solution is customized for clients.”
Toronto-based Bank of Nova Scotia and TD Canada Trust tied for second spot, not far behind Royal Bank.
Compared with last year, Scotiabank advisors rated their bank higher by at least half a point in 12 categories, including the bank’s stability, strategic focus, corporate culture, image with the public and ethics — some of the aspects advisors value most.
“We focus on the relationships we have with our employees,” says Wendy Hannam, executive vice president of domestic personal banking and distribution with Scotiabank, “recognizing and rewarding performance, providing opportunities to learn and grow, ensuring employees’ health and well-being, and encouraging open communication.”
The past four years have seen Scotiabank — along with Royal Bank and TD Canada Trust — among the top three in the annual Account Managers’ Report Card.
“We work well as a team,” says a Scotiabank advisor in Ontario. “It’s an international bank that is well informed on the world economy. And compared with other institutions, it has good support, guidance, counselling and advice.”
For the most part, account managers at TD aren’t complaining, either. Most say that the bank has competitive salaries, opportunities for career development, exceptional resources and, most of all, a stable environment. If there is a sore spot, it is the bank’s extended hours. Some advisors do not like working evening or Saturday shifts.
Still, all TD advisors surveyed would recommend their bank to other account managers. They also gave the bank top marks for its image with the public.
“It’s one of the best banks,” says a TD advisor in Alberta. “People just come in and build relationships, and you go on with your day. TD makes the job easy.”
It is no surprise that one bank — Toronto-based CIBC — experienced some slippage, with its advisors handing out lower marks for public image and stability. CIBC has been slammed this past year by writedowns related to the subprime mortgage crisis in the U.S.; it recently reported a $1.1-billion loss in its second quarter ended April 30.
@page_break@But CIBC advisors did give their bank significantly higher ratings for ongoing training, branch manager, support for tax planning and delivery on promises made, among others — making for a slight increase in its overall rating. This suggests there are better days ahead for CIBC.
Indeed, some of its advisors are certain they are working for a company that is slowly making its way to recovery. “The tarnish is starting to wear off,” says a CIBC account manager in Ontario, while another states that CIBC is “finally positioned to make some good moves.”
Others, however, are not convinced, remembering the losses that have occurred since the Enron Corp. scandal earlier this decade. “You name it and we’ve done it,” says a CIBC advisor in Ontario. “We are in every paper and are involved in every scandal. The bank doesn’t have its house in order right now.”
Vancouver-based Vancouver City Savings Credit Union, the only credit union surveyed this year, saw no changes in its overall score. But its advisors did hand out significantly lower scores for stability and corporate culture. This could be related to advisors’ desire for an enhanced wealth-management offering, an issue that came up more than once in interviews.
And how Vancity deals with its strategic focus leaves advisors unimpressed. They give the firm’s strategic focus a rating of 8.9 in importance, but only a 7.4 in performance — a 1.5-point gap.
“We are starting to change our strategic focus,” says a Vancity advisor in B.C. “But we should have had a wealth-management arm as a focus 10 years ago.”
Adds a colleague: “I don’t know what our strategic focus is anymore. But I do think it is important to increase the wealth-management department.”
Although there may be room for improvement, Vancity advisors are more than happy with their credit union. As with TD, 100% of Vancity advisors surveyed this year would recommend the CU to other account managers as a good place to work.
“Vancity is a special company to deal with, in terms of recognizing employees” says a Vancity advisor based in B.C., “and [in] the advice we give and the overall package we can offer someone.”
The unusual aspect of the credit union — and one of the ways in which Vancity distinguishes itself — is the set-up of its account managers. The CU has 60 investment specialists and 21 investment advisors who deal directly with clients. Investment specialists generally deal with smaller accounts and are licensed to sell mutual funds. Investment advisors focus on accounts that are larger than $150,000, deal with clients at more than one branch and are licensed to sell securities.
“We have a great reputation as an employer,” says Michael Atkinson, director of investment solutions at Vancity. “We have been a top employer in Canada for a number of years, and that attracts people. As well, a lot of people are oriented to the values that Vancity holds, as well as our community leadership.”
Account managers at Vancity also praise the work/life balance, the strong education and ongoing training components, Vancity’s ethics and its strong community involvement. IE