Advisor satisfaction at two of Canada’s Big Six banks appears to be headed in opposite directions, as the 2009 Report Card on Banks and Credit Unions reveals.
On the one hand, Toronto-based Canadian Imperial Bank of Commerce saw its ratings increase by half a point or more in nine categories, with no significant decreases in any of the other 16 categories. Additionally, the bank’s IE rating — which averages out the performance ratings in all categories except the overall rating advisors gave the firm — rose by 0.4 of a point to 8.0, the biggest increase among the eight firms in the survey, but still under the 8.1 average.
On the other hand, Toronto-based Bank of Nova Scotia saw its ratings drop by at least a half a point in 16 categories, including the overall rating, which fell by a full point to 8.4 from 9.4 in 2008. Its IE rating also fell by 0.5 of a point to 8.3. That said, Scotiabank, which had no increases of half a point or more in any category, still earned high enough scores to rank in the top half of the survey.
CIBC advisors appear to be happier with their bank’s performance in support for tax planning, support for wills and estates planning, consumer advertising, client statements, image with the public, technology tools and advisor desktop, back office and admin support, and stability, as well as their relationship with the compliance department.
“You feel secure,” says a CIBC advisor in Manitoba, “and there is good support.”
Echoing their colleagues at CIBC Wood Gundy, the bank’s brokerage division, CIBC’s branch-based advisors praised the firm’s decision to hire noted tax expert Jamie Golombek as managing director of tax and estate planning at CIBC Retail Markets last year.
Using a variety of means — including issuing special reports, conducting educational seminars and by meeting one on one with clients — CIBC’s tax advisory support services team has sought to communicate better with advisors and their clients, Golombek says: “We’re trying to be a source of great advice.”
CIBC also launched its “It’s worth a talk” campaign this past autumn, which was created to highlight the banks’ advisory services. The campaign appears to have achieved some success, as CIBC advisors rated the bank’s consumer advertising 0.7 of a point higher than last year; its 7.9 rating in the category is the third-highest in the survey.
“There is an excellent culture [at the bank],” says a CIBC advi-sor in New Brunswick. “The brand is great.”
This year’s improved scores represent a change of direction for CIBC, as it had the worst IE rating in last year’s survey. That said, many of the bank’s advisors felt that CIBC still has a way to go in terms of improving its services.
“They have great idea and good strategies,” says a CIBC advisor in Ontario, “but they can’t execute.”
Many Scotiabank advisors felt just as dissatisfied, as evidenced by the noticeable drop in scores vs last year. Most notably, there were significant decreases in the firm’s corporate culture, strategic focus, ethics, image with the public, technology tools and advisor desktop, back office and admin support, compliance, delivery on promises and freedom to make objective product choices.
“The bank will question your choices,” says a Scotiabank advi-sor in British Columbia, “regardless of what’s best for the client.”
For its part, management says that it supports its advi-sors in putting the clients’ interests first. “We don’t focus our advisors on product profitability per se,” says Wendy Hannam, Scotiabank’s executive vice president of domestic personal banking and distribution. “Our advisors are focused on doing what’s right for the customer and providing the right solutions for those needs.”
A number of Scotiabank advisors had issues with the bank’s tech tools and advisor desktop, as well as with its back office and admin support. Scotiabank had made a number of technology enhancements in 2008, but some advisors say the various systems aren’t as easy to use as they should be.
As well, many advisors took issue with client account statements. Says a Scotiabank advisor in B.C.: “Something that should be so simple is so complicated. The [statements] don’t show what they should.”
Although many Scotiabank advisors griped about lower compensation, there wasn’t a significant drop in Scotiabank’s total compensation rating, which was down by only 0.2 of a point to 7.7, a score that’s above the overall average.
@page_break@Management says it hasn’t made any changes to the compensation structure despite the recession. IE