Fintech Advisory Service Summer 2016

In collaboration with ParameterLabs, the most recent edition of the Fintech Advisory Service unearths the learnings of early adopters: both on the supply-side with regards to the online advice model itself, and on the demand-side through consumers who have demonstrated interest in, and consumption of, digital wealth management services. From Strategic Insight, this feature research explores the business imperatives unique to start-up firms in the financial services arena and highlights the key implications and takeaways for industry stakeholders. Against the backdrop of a still-developing fintech ecosystem, online advice start-ups are presented with challenges generally not faced by the old guard. This analysis follows the evolution of this emergent channel as its constituents endeavour to: determine total and addressable markets; generate awareness; build a trusted brand; grow and communicate the online advice value proposition; catalyze action; and deepen their share of wallet. The latest analysis from ParameterLabs focuses on the consumer decision to adopt automated investment services. While the market is still in its early days, this research uncovers key factors—demographic characteristics and investment preferences—leading to the initial adoption of online advice services. Although early adopters differ from mass market consumers, they provide valuable insight into the diffusion of these approaches into the wealth management arena. Readers will also see additional insights from the ParameterLabs™ social media index as our tracking of consumer demand extends over time. This edition is an important read for all financial service providers in wealth management who are aiming to understand the online advice arena and the Canadian fintech ecosystem—this analysis will benefit distributors and manufacturers alike in formulating technology-driven and differentiated approaches to product development, distribution, marketing and the client experience.