A study by Dalbar suggests one of Canada’s big banks is going above and beyond the CRM2 reforms all wealth players are busy adapting to, and in the process it may be setting a new benchmark for fee disclosure.
The study measures how effectively Canada’s big banks are addressing client needs and impacting the overall client experience. As far as the findings are concerned, one bank is a cut above the others when it comes to fee transparency.
For a 2015 client experiences study, focused on interactions with financial planners, Dalbar tracked clients with investible assets of $100,000 after they went into four of the Big Five seeking a complete financial plan. The goal was to evaluate the banks’ financial planning services, collecting 3,500 data points about every stage in the advice cycle.
According to the study, TD Financial advisors actually initiated a discussion regarding the topic of fees. The bank also ranked the best in terms of its ability to locate a financial advisor and schedule an appointment using its online tool. TD advisors responded to all inquiries in a timely fashion, following up with clients within three hours.
That first finding around fee disclosure is the direction all advisors are being urged to move. It’s all about ensuring full transparency and going beyond CRM2. As financial planning becomes even more central to banking concerns, some advisors will be investing greater resources into delivering an exceptional planning experience by being more forthright about fees.
Still, all banks have their work cut out for them in terms of meeting client expectations around cost containment.
The newly released 2015 Canadian Retail Banking Satisfaction Study by JD Power shows the Big 5 dropping an average of 12 points from 2014 in overall customer satisfaction.