Advisors targeting the lower end of the retail market may have to rethink their strategy as these clients are less inclined to seek out their services, indicates new research released Friday.
A new CIBC poll by Harris/Decima has found that, despite debt repayment being a top priority for Canadians for the fourth year in a row, only 47 per cent of them have met with a financial advisor, and just 6 per cent of those who have would be willing to talk candidly about their debt.
"For the majority of people, debt is scary, debt is frightening," says Ontario advisor Kevin Cahill. "The financial industry has become so complicated and confusing. And, advisors don’t make any money by counselling on debt."
So, Canadians are taking on a 'do-it-yourself' approach to debt repayment that could be inhibiting the growth of your client base. This is an opportunity lost, according to Christina Kramer, CIBC’s vice president of retail distribution and channel strategy, who suggests that having a plan in place is critical to debt reduction.
“While the intent to reduce debt is clear, we also know that some Canadians are not yet making the progress they want to on reducing their overall debt levels, which speaks to the importance of having a clear action plan in place to reach your goals in 2014," said Kramer in a release. (Continued on Page 2)