In an effort to reflect Canada’s ever-expanding multicultural mosaic, many financial services firms have made considerable strides toward institutionalizing comprehensive diversity and inclusion strategies in their work environments.
Now, the firms are shifting their attention to how this strategy can help them and their financial advisors recruit more clients of various ethnicities.
Based on the research compiled for this year’s Report Card series, advisors are more than satisfied with their firms’ approach to diversity, giving a performance rating of 8.9 on average overall in the “firm’s diversity and inclusion strategy” category – the fourth-highest overall rating.
Among the hallmarks of the successful strategies from the top-performing firms are: establishing groups to foster female leadership; mentorship programs for advisors of various ethnicities; and the participation of firms in community events and cultural festivals.
“[Our firm] is all about diversity,” says an advisor in Ontario with Toronto-based TD Wealth Private Investment Advice. “We’re very blended and very inclusive. I think the staffing represents the diversity in Toronto.”
Given the success of these workplace diversity and inclusion strategies, many firms are eager to take the next step: identify how they can leverage a diverse and inclusive group of advisors to help the firm recruit new, multicultural clients.
“People invest with those they identify with,” says an advisor in Ontario with Mississauga, Ont.-based Edward Jones.
“I have a lot of potential clients who speak Mandarin [and need] materials that cater to them,” adds an advisor in Ontario with Toronto-based Bank of Montreal.
Big cities, big focus
Advisors across the country echoed these comments – especially advisors in and around Canada’s major cities, which have burgeoning multicultural communities.
There’s more than anecdotal evidence to support what advisors are saying. According to Statistics Canada’s annual demographic estimates, about two-thirds of our nation’s population growth in 2011-12 came from international immigration.
Thus, providing financial services to these diverse markets is about more than symbolic diversity strategies; it’s about smart business, says David Agnew, CEO and national director of Toronto-based RBC Dominion Securities Inc.: “We’ve increased our focus in this area because it makes great sense when you look at the demographics. If we’re not there, we’re going to miss a good business opportunity.”
Alan Middleton, executive director of the Schulich Executive Education Centre at York University in Toronto, agrees, noting that in order for advisors to build a sustainable practice in the future, they’re going to have to identify new ways of connecting with clients of different cultural heritages.
Although Middleton commends the efforts the financial services industry has made, he says that there’s still a long way to go for many firms.
“Good ethnic marketing is more than having all your brochures in different languages,” says Middleton. “Ideally, it’s about having your decision-making influenced by [people] who have some knowledge of the community.”
Adds Vinnie Combow, president of Ethnimark Advertising Inc. in Surrey, B.C.: “Firms need to do more than run an ad that wishes [Hindus] a ‘Happy Diwali’ if they hope to have more clients run to their businesses. If all they do is put a brown face here or there in an ad, or a guy with a turban, they aren’t going to accomplish much.”
Thus, Middleton says, financial services firms will have to devote more time to building relationships within their communities. One firm that’s adopting this “grassroots” approach wholeheartedly is TD Wealth PIA.
Since 2009, Alfred Chung has been director of Asian services for that firm, which has allowed him to act as the official spokesperson of the firm regarding the concerns facing Asian-Canadians.
In particular, Chung says, he solicits feedback from the front lines, which the firm then translates into a strategy tailored to the special needs of individual communities. For example, the firm has implemented seminars that focus on issues that impact certain ethnicities.
“It is important to stay close to our clients,” Chung says, “to provide what they are looking for.”
Meanwhile, Montreal-based National Bank Financial Ltd. (NBF) is looking at building “international centres” this year, says Martin Lavigne, president of NBF’s wealth-management division, in order to connect better with diverse communities across the country.
“I want [to make these changes],” Lavigne says, “to make sure we service these different communities according to their realities, culture and religion.”
In addition, NBF also is planning to launch a new marketing microsite for its advisors, which will include material geared toward specific multicultural clients.
Although many of the banks and bank-owned firms tend to have the upper hand in connecting with multicultural clients, says Judy Morfitt, director of marketing with Investors Group Inc. in Winnipeg, many independents are closing the gap.
Not just a bank account
“These new Canadians are realizing that it isn’t just a bank account they need,” Morfitt says. “They need someone who can help them navigate the landscape, so they seek advice [because] this isn’t a transactional business.”
Still, regardless of the firm or its business model, Middleton says, firms and their advisors need to take a long-term approach in order to succeed in making inroads with multicultural communities, as any strategy will not pay dividends overnight.
“[Firms and advisors] might not see huge increases right away – but keep working at it,” Middleton says. “After a few years, the trust will begin to shine through.
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