Advances in dealer platforms are among the reasons for strong industry performance in 2020, writes Ian Russell, president of the Investment Industry Association of Canada (IIAC).
Dealers introduced web-based communication technologies in the early stages of the pandemic to accommodate remote-based operations. As these interactive communication technologies have been adapted and matured as an integrated part of the client-advisor relationship, these technologies have contributed to the efficiencies and productivity of the investing process.
Dealer platforms demonstrated sufficient flexibility of product, services and technology to meet the needs of investors with differing profiles, both high networth clients and middle market investors. Further, the existing clients of dealers shifted increased investable funds to dealer accounts reflecting expanding investment opportunities in markets, and more accumulated savings from reduced spending through the pandemic.
In the past several years, a client-advisor interface has improved through technology advances, such as better stock quotation systems, more effective client order management, discretionary portfolio management platforms for advisors for product access and analytics, and digitalized client access to accounts and information on firm websites.
The large gains in commission revenue this year, up 15% and 20% at the integrated and retail firms, respectively, suggest more frequent client-advisor communication and resulting transactions in more fast moving markets.
