In 2020, retail revenues grew 5% year-on-year among integrated businesses, while 17% growth in total operating revenues contributed to a 50% increase in operating profit at independent retailers . Client assets under management across the industry increased 12% to $ 3.4 trillion.

“Over two consecutive years, customer assets held at dealerships have grown by almost a third, with customer assets growing at a faster rate at independent dealer franchises,” said Russell.

One of the main forces driving the advance of wealth management companies, he said, is the increased participation of investors in the stock and derivative markets through dealer platforms in a context of increasing constant stock prices. He said the evidence indicates that traditional intermediaries like banks and credit unions, as well as online wealth management platforms with limited products and advice, have seen an exodus of clients seeking professional advice. and access to higher yielding financial assets.

Dealer platforms have proven they have the flexibility to meet the needs of different new customer profiles, including millennials and women, of working age and older, in high and mid-value market segments. Dealers have also seen investable funds in existing customer accounts increase, reflecting investment opportunities in the markets as well as forced savings resulting from pandemic-induced changes in their financial position.

“The second major driver of performance in the brokerage wealth management industry has been the major advancements in the brokerage platform that deepened the client-advisor relationship,” said Russell, noting that onboarding clients in the investment process facilitated more active participation and investment in the market. activity.