Survey finds finfluencers, AI informing Canadians, but advisors still serve as sources of trust
Canadian DIY and hybrid investors have a voracious appetite for information and they’ll turn to human and non-human sources to find it. A recent survey of Canadian investors conducted on behalf of Global X Investments Canada Inc. and National Bank Direct Brokerage (NBDB) found that 84 per cent of Canadian DIY investors, including hybrid investors who also work with advisors, use finfluencers and/or artificial intelligence to inform their investment decisions. 77 per cent of respondents said they consume content from financial influencers (finfluencers). 83 per cent of those investors also reported taking at least one tangible action after they engaged with creator content. A further 68 per cent of finfluencer viewers also used AI for investment research, compared to only 14 per cent of non-viewers. There is a new information ecosystem emerging for these investors.
The rise of finfluencers, AI-powered research, and other means of accessing investment information has often been framed as a direct threat to financial advisors and the legacy financial services industry. However, the survey found that these investors’ hunger for knowledge doesn’t necessarily mean they won’t trust a human advisor. In fact, of the hybrid investors surveyed, 96 per cent said they would pause or reconsider a decision informed by finfluencers or AI if their advisors recommended against the idea. While these investors are finding new sources of information, the trust they place in their advisors remains a key factor.
“We see that Canadians are skeptical. When they see information, they don’t trust it right away,” says Stephanie Wolfe, EVP & Head of Marketing at Global X Canada. “Most of them seek to validate, so they go to AI, then they fact-check with information from friends and family, and those who work with a financial advisor are going to be going to their advisor. At the end of the day, the most credited and reputable source of information was the advisor.”
New client relationships in the new information ecosystem
While clients appear to be following the old Russian proverb of “trust, but verify” regarding finfluencer and AI-derived investment information, advisors also need to stay aware that their clients are finding alternative sources of information. For many of those clients, the new sources are empowering. 81 per cent of respondents said that finfluencer and AI content changed their advisor relationship. 50 per cent said they felt more confident asking their advisor questions and 36 per cent said they rely more on their advisor to verify the information they receive.
It’s not all sunshine for advisors, though. 19 per cent of respondents said they rely less on their advisors, 16 per cent said they now make financial decisions without talking to an advisor, 14 per cent are more skeptical about their advisors’ advice, and 13 per cent have disagreed with their advisors.
It’s not just advisors and broker-dealers reckoning with a more informed client base. Direct brokerages are working to ensure that they can provide points of verification and credibility for these clients. Claude-Frédéric Robert, President of National Bank Direct Brokerage, notes that while a direct brokerage like NBDN cannot give its users advice, it’s important to offer them resources they can easily access to verify what they’re learning from AI and finfluencers.
“As a direct broker, the research makes us ask how can we offer more information and more education in a way that will be consumed by our investors,” Robert says. “We have lots of information on our website, but I’ve learned that’s not the way they consume it. So how can we adapt to make sure we support [investors] in the best possible way?”
Advisors’ place in the ‘information funnel’
One of the responses by the industry to the rise of financial influencers on social media platforms is to empower advisors with content of their own. Compliance reviews have been made more efficient and new processes have been built to allow advisors to put verified information on these channels and establish their own audiences and credibility. For Stephanie Wolfe, however, becoming a finfluencer may be less valuable than just understanding what advisors’ clients may be encountering online.
The survey paints something of an information funnel for hybrid investors. At its widest point, these investors learn something from a finfluencer. As the funnel narrows they verify their information through trusted filters: AI, friends and family, and their advisor. Wolfe says that advisors should try to understand if their clients use social media or AI for financial information and what they learn from those sources. Rather than putting the clients’ on guard for using an alternative source of information, she believes advisors can simply try to learn what their clients are engaging in as a means of better positioning themselves as the most trusted filter for their information.
“Content creators and AI, are actually informing the advisor relationships. 84 per cent of investors are comfortable talking about this content with their advisor now,” Wolfe says. “Now clients feel a bit more informed. They can actually have an engaged conversation. So I think that’s a very encouraging takeaway that advisors should recognize.”
