Designations no longer a choice

The CFP has long been one of the key industry designations, but it is not the only one. The personal financial planner designation, granted by the Institute of Canadian Bankers, is gaining popularity among bankers; one in three have earned the designation and 14% are working toward it, according to the survey. More than 5,000 advisors from all types of institutions hold the PFP, with more than 19,000 in the pipeline.

The PFP designation is extremely important to the banks, says Gaetano Di Foglio, the ICB’s director of marketing and client relations. It is the badge by which they identify qualified financial planners to their customers. Di Foglio says the PFP “gives an individual what is needed to be competent in a financial services position.”

Most banks and credit unions make it mandatory for planners to have either a PFP and CFP. At Bank of Nova Scotia, for example, having either or both designations is a requirement, says Pat Krajewski, senior vice president, human resources for Scotiabank in Toronto.

“We place a very high value on training, learning and development at Scotia,” she says. “It’s one of the things we think is absolutely critical in today’s world. Our customers are demanding that our employees continually provide not only top service but top quality advice.” Scotiabank invested about $47 million last year in a variety of training programs. One was a new Web-based program designed to help employees determine which requirements are needed to further their careers and where they can get that training.

Scotiabank staff (who rated the bank’s training at 7.5) expressed few complaints about their employers’ efforts regarding continuing education. One Scotia employee from Ontario says, if you need ongoing training, “it’s there.”

“[Scotiabank] has heart,” says an Alberta-based advisor with Scotiabank. “It goes above and beyond other financial institutions. It’s constantly training us and upgrading our skills.” Of those polled from Scotiabank, 20% had a CFP and 50% had a PFP.

Another bank stressing continuing education and training is CIBC. Rob McLeod, director, corporate communications, says CIBC rural account managers are required to have a PFP, while in the urban areas employees who offer financial advice must have a CFP.

“CIBC funds the study notes for the courses, we offer a help line to assist staff with questions as they prepare their courses and we have online support material,” McLeod says. In the report card, 30% of those polled had a CFP, while 53% had a PFP.

An Alberta CIBC banker says the bank is extremely strict on accreditation. A British Columbia banker says that at CIBC “it’s very do-it-yourself, but unfortunately there’s not a lot of time for [continuing education].”
CIBC received a mark of 6.9 for ongoing training.

Time is a big issue when it comes to furthering education. Home, family and work commitments often leave little time to study and prepare for difficult exams. Many banks understand this and allow employees time off to meet educational requirements.
“We are committed to exceeding the thresholds of continuing education requirements,” says Matt Varey, senior vice president, head of sales at RBC Investment Financial Planning. Royal Bank of Canada employees are frequently given time off to take courses. Students in the accelerated PFP program are often pulled from their daily duties to attend full-day classes, with the bank footing the bill.

“We find our clients consider accreditation and training as the highest priorities,” Varey says. Royal Bank scored the highest for ongoing training with an 8.1 rating.
“The way Royal treats its staff is [the best aspect],” says a Royal Bank advisor in Ontario. “It has a great staff philosophy and the training is good.”

Responses from other banks varied between positive and apathetic. At Bank of Montreal, which received a grade of 7.4, an Alberta banker says the training is “changing so often that you can’t keep up with it,” but an Alberta colleague says the bank is “very progressive with training and providing opportunities.” Of BMO bankers polled, 38% had a CFP and 31% had a PFP.

Laurentian Bank of Canada employees were unimpressed with the ongoing training they’ve received. They rated the bank at 5.7; only 9% had a CFP and another 9% had a PFP.

“Training at Laurentian is training by fire,” says a Laurentian banker in Alberta. “What I would prefer and what the company can afford are two different things.” An Alberta colleague says the training is the same as it was in 1975.

Time and money spent on training will only increase as clients come to expect more from their banks. According to the Canadian Bankers Association, spending on training by the six largest banks collectively rose to $1,550 per employee in 2000, from $1,500 in 1995 and $1,000 in 1992.

“I think today’s employees recognize that everything is driven by the customers’ demands. The banks will have to continue to focus on ways to support employees even more in continuing education and training,” says Scotiabank’s Krajewski. IE