Rather than predicting a revolutionary development in the financial services industry in 2016, we see ongoing developments – and broadening public awareness – of trends that took hold in 2015. Here they are:
1. More mutual fund firms will offer ETFs
The ETF market is quickly growing its assets under management. And we’ll place bets that investment firms and the money management arms of the banks are going to expand or start their ETF product shelf in 2016. Also, we expect to see a growing number of managed solutions that incorporate ETFs in order to offer competitive fees.
2. Robo-advisors will capture more assets
We think robo-advisors are going to find successes in 2016. We also think, however, that robo-advisors will experience some growing pains early on, mostly as a result of highly unpredictable markets. There’s a good chance that all of the Big 5 banks will start, acquire or form strong ties with robo-advisors by the end of the 2016.
3. Regulators will get serious about considering fiduciary duty for advisors
As CRM2 winds down, we expect regulators to amp up their discussions about whether or not advisors will be held to a standard of fiduciary duty. We don’t expect any implementation of this standard for years, if not decades.
4. Big U.S. investment firms will seek greater exposure to Canada
Canada may not be the biggest market in the world but we seem to love mutual funds. We expect U.S. firms to take an ever-growing interest in Canadian investors. We expect to see partnerships between U.S. and Canadian firms, as well as the possibility of U.S. companies setting up shop north of the border.
5. Low resource prices will negatively affect investors right through 2016
This may be obvious but we think it’s worth noting. The supply of oil production right now far exceeds demand and Canadian energy companies are going to suffer. So are investors who have a lot of exposure to this sector.
6. Revving up for CRM2
Everyone in the financial services industry – manufacturers, dealerships, advisors and investors – will be talking about CRM2, especially the new line items on statements.
There may not be any big surprizes on this list but these trends will dramatically shape the industry – and the projects that financial services marketers work on – for years to come.