With instability reigning in the financial markets, you might expect that deposit-taking institutions would place a greater emphasis on supporting their advisors in developing financial plans for clients. However, the results of this year’s Report Card on Banks and Credit Unions show that advisors aren’t exactly thrilled by the level and quality of support.
Comprehensive and up-to-date financial planning software is what advisors say would encourage them to offer financial plans — and problems with such software was the No. 1 reason why the overall average rating for support for developing financial plans for clients dropped the most of any category in this year’s survey, to 7.8 from 8.5 in 2008. Additionally, the percentage of advisors’ clients with a financial plan dropped to 41.7% from 44.8% last year.
Toronto-based Bank of Nova Scotia was one of the firms that drew the ire of its advisors for its financial planning software. Many advisors say the program is outdated and difficult to navigate.
“They need to improve their technology,” says a Scotiabank advisor in Manitoba, “because the financial planning software isn’t user-friendly.”
A colleague in British Columbia agrees, saying he would rely on the software more often if it was easier to use: “The system is terrible, and it’s too complicated. There’s a lot in there that isn’t necessary.”
But if Scotiabank advisors are hoping for a system-wide revamp, it appears that they’re out of luck. Wendy Hannam, Scotiabank’s executive vice president of domestic personal banking and distribution, says the bank values the software greatly and believes advisors should use it to develop a financial plan for all clients, so the focus over the next year will be directed toward training.
“About three years ago, we introduced a planning tool called Blueprint,” she says. “And it’s expected that all of our financial advisors will be using the Blueprint tool when they’re having conversations with customers about their goals and coming up with the right solutions [for those clients].”
Meanwhile, the introduction of a new financial planning platform at Toronto-based Bank of Montreal should encourage its advisors to produce more financial plans for their clients, says Jim Lund, director, national sales force programs and retail investments, with BMO.
“Financial planning is what we do. Our financial planners deal with a variety of bank-branch clients,” says Lund. “The plans we provide help our clients focus in on the investment solutions that best suit their needs.”
Some BMO advisors are extremely pleased with the new financial planning software the bank has launched.
“We just started with the software this year … actually, the support is pretty darn good,” says a BMO advisor in B.C. “We have a dedicated person in Toronto and we have a call centre to help us with this.”
Although the new system may be good on its own, other BMO advi-sors say, the platform was a terrible match for the bank’s previous system — and the two are in conflict.
“BMO needs to work on integrating the technology,” says an advi-sor in Alberta. “We have legacy systems that are older than I am and we have new stuff, but the programs don’t always talk to each other.”
Even firms that place an emphasis on financial planning — and are rewarded for doing so — have advisors who struggle with their financial planning software.
For instance, Toronto-based TD Canada Trust had the highest performance rating (8.8) of all the firms in the survey for support for developing a financial plan for clients. Not only that, but TD advisors report that 78% of their clients have a financial plan in place, which is significantly higher than the sector’s overall average.
That said, a TD advisor in Manitoba says, “I would like to see better software. It’s missing personalized details.”
Although software may be an area of concern, the support is not — by any stretch, says another TD advisor in Manitoba: “We have the top people from Toronto come and give us annual training. They are always available and they are top-notch.”
Advisors with Toronto-based Canadian Imperial Bank of Commerce were also quick to praise their bank’s approach to financial planning; in fact, CIBC advisors have the second-highest percentage of clients with financial plans in the survey, at 53.8%.
“We are making it a priority, hoping every client will have one,” says a CIBC advisor in Ontario. “We are pushing it and trying to establish the bank brand as the place to go to for advice.”
@page_break@Meanwhile, a CIBC advisor in New Brunswick praises the support the bank provides for financial planning: “We have resources, updates and support for answering questions in a timely fashion, in addition to online support.” IE