Financial advisors with Canada’s banks and credit unions say they remain less than impressed with their firms’ technology tools and back-office support.
Advisors surveyed for this year’s Report Card on Banks and Credit Unions gave their firms relatively low overall performance ratings in both “technology tools and advisor desktop” and “back office and administrative support” compared with how high they rated the two categories in importance, resulting in the two biggest gaps between importance and performance ratings in this survey. Technology and back-office support have long been sore points for advisors — and performance ratings continued to drift lower in this year’s Report Card.
On the technology front, advisors say they often struggle with slow or out-of-date hardware, and with software that either is not user-friendly or does not complement other software well. Inferior technology can bog down workflow and creates other inefficiencies, advisors say.
“We really need more time-saving tools,” says an advisor in Ontario with Toronto-based Bank of Montreal, “because we have more documentation [to complete] than ever before.”
BMO advisors say the bank needs to introduce more and better tech tools; they also would like the tools they do have to “talk” with each other better. Nevertheless, there was acknowledgement that BMO has taken positive steps forward — its tech tools rating improved to 6.7, up from 6.4 in 2010.
“They’ve invested money in technology,” says a BMO advisor in Ontario, “so there are fewer errors. [That] saves us time and [helps us] serve clients more efficiently.”
Advisors with Toronto-based Bank of Nova Scotia also expressed frustration with their firm’s technology, despite the bank’s recent efforts to improve it. Problems cited include weak financial planning tools, outdated hardware and recurring problems with the firm’s server being down or too slow. Scotiabank advisors rated their firm’s tech tools at 7.0, down from 7.8 last year.
Says a Scotiabank advisor in Atlantic Canada: “The issue is a lack of speed and flexibility.”
Advisors with Montreal-based National Bank of Canada — who gave their firm a tech tools rating of just 5.7 and who generally panned the firm’s efforts in this category — say they are encouraged by the firm’s plans for a major revamping of its technology platform.
“We are going through the implementation of an advanced sales and service platform for front-line employees,” says Marguerite Pernice, National Bank’s senior manager of wealth management, adding that the implementation process is projected to take two to three years.
But it wasn’t all weak ratings and bad news for banks when it comes to technology. Royal Bank of Canada and TD Canada Trust, both based in Toronto, received praise and high ratings of 8.8 and 8.3, respectively, in the category.
RBC management says that technology investment is a key focus for the bank — and that it will be rolling out a new technology training program this year.
TD, for its part, recently introduced technology related to su-per-vising product suitability for clients. “Every time we go to meetings,” says a TD advisor in Ontario, “management talks about developing [tech tools] further.”
In terms of back office and administrative support, advisors throughout the survey complained of slow response times and careless errors — including, in some instances, lost documents. Lack of expertise and adequate training for back-office staff — or frequent staff turnover — also have added to problems.
Says an advisor in Ontario with Toronto-based Canadian Imperial Bank of Commerce: “It frustrates me that I have to rely on [back-office staff] when they aren’t doing things on time.”
CIBC advisors also noted that there is often a perceived disconnection between themselves and their bank’s back office. “Communication with back office could be improved,” says a CIBC advisor in Alberta. “It requires a lot of followup just to make sure things get done.”
BMO advisors complained of slow response times and errors, with many pointing to an overworked and understaffed back office. Says a BMO advisor in British Columbia: “They’re swamped, and mistakes are constantly being made.”
TD advisors also say they experience issues with response times, putting them in the difficult situation of explaining delays to clients. Says a TD advisor in Ontario: “The transfer time is lengthy; it seems to drag. When you’re dealing with clients, it’s difficult.”
Advisors with Edmonton-based Servus Credit Union Ltd. echoed their counterparts in the banks, saying they experience difficulties with their back office, primarily related to speed of response and lack of expertise — a problem they attributed to lack of experience. Says a Servus advisor in Alberta: “We’re experiencing growing pains.”
Servus — created by the 2008 merger of Edmonton-based Servus Credit Union; Community Savings of Red Deer, Alta.; and Common Wealth Credit Union of Lloydminster, Alta. — is still developing its wealth-management advisory business. Says Randy Biberdorf, vice president of wealth management with Servus: “We are moving to make that more consistent.”
Meanwhile, RBC advisors gave their firm the top rating in the back office category at 8.6. RBC’s management says it’s looking to launch an “e-courier” capability to scan more documents before they go to the back office. The goal is to increase efficiencies and turnaround time and decrease the incidence of misplaced documents. IE