Media Releases

• Mobile is now the preferred channel for routine transactions for around a tenth of consumers, and this proportion will rise as older consumers adopt mobile banking in greater numbers
• Branch location is of greatest importance to post-families; over half of younger consumers also cited this as a factor.
• Although branches are being used progressively but less for transactional activities and remain vital for sales-led activities.

Ken research declared its recent production on “Retail Banking Country Snapshot: Canada 2016” which offers insight on retail banking sector in Canada, which is highly concentrated upon the current account, savings, mortgage, and personal loans markets which includes both market-level data and information from global retail banking insight survey. Furthermore, the report offers an in-depth analysis of consumer approach towards the financial sector and how it has evolved over a period of time including who are dominating the market and what factors persuaded them to make such decisions. Likewise it includes the shrewd investigation of the extent of consumers using internet and mobile channels to do their research on financial products. This report will help you learn the impacts which new incumbent and distribution channels will have on the market.

Canada possess the 10th or 15th-largest economy across the globe, and is one of the world's wealthiest nations, moreover, it is a member of the Organization for Economic Co-operation and Development and Group of Seven. 85.8% of the population in the nation uses internet. The Canadian economy is dominated by the service industry, which employs about three quarters of Canadians. Canada is a global leader in the production of many natural resources, for example gold, nickel, uranium, diamonds, lead, and lately crude petroleum, which, with the world's second-largest oil reserves, is taking an expanding prominent position in natural resources extraction. Several of Canada's largest companies are based in natural resource industries, such as EnCana, Cameco, Goldcorp, and Barrick Gold.

Banking in Canada is hugely acknowledged as one of the safest banking systems across the world, ranking as the planet’s soundest banking system for the last six years according to reports by the World Economic Forum. Global finance magazine in October, 2010 had put Royal Bank of Canada at number 10 among the world's safest banks and Toronto-Dominion Bank at number 15.

Opting for providers on the basis of reputation, branch presence, and pricing were observed widely by the people of Canada, conservative preferences were not only observed in the post-family consumers but by the pre- and younger families as well. Mobile is the newest banking channel and has yet to reach maturity, it’s still a long way to go as around 80% of post-family consumers have never used the channel, although branches are being used progressively but less for transactional activities, they remain vital for sales-led activities.

To know more on the coverage, tap on the link underneath:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/retail-banking-country-snapshot-canada-2016/58928-93.html

Related Reports

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-norway/62460-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/banking/retail-banking-country-snapshot-us-2016/62130-93.html

Contact:

Ken Research 
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
+91-124-4230204

Ken Research has recently announced its publication, “Wealth in Canada: HNW Investors; Understanding HNW investors and wealth management strategies in Canada.”which aims at providing in-depth market analysis of Canadian wealth management market, with a focus on HNW segment’s demographics, investment preferences and services demand. It further examines the allocation of HNW Investors portfolios into different asset classes and gives insights of product and services demand among Canadian HNW investors.

High Net worth Individuals (HNWI) is a term often used in financial service industryto refer to those individuals whose membership in high net worth club is at least one million in liquid financial assets. Looking at HNW market in Canada, this report analyzes Canadian wealth management market, with a focus on HNW segment’s demographics, investment preferences and services demand. It further examines the allocation of HNW Investors portfolios into different asset classes and gives insights of product and services demand among Canadian HNW investors.

The HNW market in Canada is dominated by family business owners and expat clients drawn from Asia Pacific and The US. These owners prefer discretionary asset management and since they are very cautious investors they favor classic investments such as equities and bonds more than property and commodity. The majority of HNW individuals have accumulated their wealth through first-generation entrepreneurship and family business. Expats, particularly from China and The US, represent large segments in the HNW market.

Portfolio of an average HNW investor in Canada

Canadian HNW investors heavily favor equities, followed by fixed income security of bonds. Such investors are preoccupied with tax issues since they lie in highest income brackets in Canada. Thus, their portfolio construction takes into account such investment that can provide them with maximum yields and ensure minimum tax payments. Wealthy Canadians prefer dividend stocks since these have lower tax payments associated with them.

According to a survey done by the globe and mail in 2015 on 330 citizens of The US and Canada with portfolio investment worth between USD ten million to billion. Preferences of different assets of major net worth individuals of the sample are represented through pie chart below:

The survey concluded that real estate comprises of largest share of an average tiger 21 member portfolio followed by followed by public and private equities.

Sophisticated investment needs of the HNW investors show a strong and enduring preference for discretionary wealth and asset management services to supervise complex portfolio requirements. Thus, lawyers, accountants, business planning experts are crucial service providers for wealth management planning and they perform following functions:

• Tax planning
• Succession planning
• Expertise in portfolio construction
• Planning in case of various assets like hedge funds, private equity investments, etc.

                         Macroeconomic trends of HNW market in Canada

North America has highest population of HNW investors and highest amount of HNWI wealth in the world. Canada is contributing significantly in to HNWI wealth in North America.

• According to a report published by media house named thestar.com number of Canadian millionaires climbed to 320,000 in 2014 which was 7.2% higher than that in 2013. Number of millionaires are increasing at fast pace laden to expansion in HNW market of Canada.
• Equity market has recovered beautifully in 2016 sending positive signals to the HNW investors. This is aiding in expansion of HNW market of Canada preventing outflow of Canadian wealth out of Canada to other nations.
• According to Royal Bank of Canada HNWI are focusing on growth of their wealth which is leading to expansion in HNW market in Canada. Their preference for growth increased to 30.7% in 2016 from 18% in 2003. There is no sign of abating in the market.

However, many HNW investors continue to predict signs of trouble and weakness in Canadian economy and this is the reason they are cautious about placing too much money in Canadian economy.

Thus, key macroeconomic trends that may affect Canadian HNW market are:

• There is excess supply of real estate in Canadian economy. Bubble in Canadian real estate market might burst in 2016 leading to huge loss of investments in real estate sector. Thus, to prevent the situation analysts anticipate Canadian interest to lag The US rates which may lead to outflow of wealth from Canada to other competitive economies.
• Uncertainty in most developed economies like political and military conflicts is leading to outflow of HNV investments out of developed nations to emerging economies.
• Further barriers may include:
• Lack of economic activity.
• Labor shortages
• Falling demand for goods and services.

For more coverage click on the link below:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-canada-hnw-investors/29890-93.html

Related links

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-indonesia-hnw-customers/2194-93.html
https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-china-hnw-customers/2198-93.html

• HNW investor portfolio is dominated by equities followed by fixed income securities. However, investment in real estate has also improved tremendously in past few years.
• Though number of millionaires are growing in Canada but many HNW investors predict slowdown in future which may imply outflow of Canadian high net worth wealth into other nations.

Ken Research has recently announced its publication, “Wealth in Canada: HNW Investors; Understanding HNW investors and wealth management strategies in Canada.”which aims at providing in-depth market analysis of Canadian wealth management market, with a focus on HNW segment’s demographics, investment preferences and services demand. It further examines the allocation of HNW Investors portfolios into different asset classes and gives insights of product and services demand among Canadian HNW investors.

The HNW market in Canada is dominated by family business owners and expat clients drawn from Asia Pacific and The US. These owners prefer discretionary asset management and since they are very cautious investors they favor classic investments such as equities and bonds more than property and commodity. The majority of HNW individuals have accumulated their wealth through first-generation entrepreneurship and family business. Expats, particularly from China and The US, represent large segments in the HNW market.

Canadian HNW investors heavily favor equities, followed by fixed income security of bonds. Such investors are preoccupied with tax issues since they lie in highest income brackets in Canada. Thus, their portfolio construction takes into account such investment that can provide them with maximum yields and ensure minimum tax payments. Wealthy Canadians prefer dividend stocks since these have lower tax payments associated with them. Many recent trends observed show that that real estate is emerging as largest share of an average HNW individual’s portfolio followed by followed by public and private equities.

North America has highest population of HNW investors and highest amount of HNWI wealth in the world. Canada is contributing significantly in to HNWI wealth in North America. Number of Canadian millionaires are increasing at a steady pace. Further, Equity market has recovered beautifully in 2016 sending positive signals to the HNW investors. This is aiding in expansion of HNW market of Canada preventing outflow of Canadian wealth out of Canada to other nations. According to Royal Bank of Canada HNWI are focusing on growth of their wealth which is leading to expansion in HNW market in Canada. There is no sign of abating in the market.

However, many HNW investors continue to predict signs of trouble and weakness in Canadian economy and this is the reason that they are cautious about placing too much money in Canadian economy. The reason for the trouble is excessive supply of real estate in Canadian economy that might lead to recession, uncertainty associated with developed nations and many other factors like contracting demand, economic contraction, etc.

Global trends

Global trends support growth in both HNWI population and HNWI wealth across the world.

Key global macroeconomic trends are:

·         North America has highest HNW population and wealth followed by Asia Pacific and Europe.

·         United States has highest population of high net worth investors followed by Japan, Germany, China and United Kingdom.

·         High net worth individuals are increasing globally.

·         High net worth wealth is increasing globally.

For more coverage click on the link below:

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-canada-hnw-investors/29890-93.html

Related links

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-indonesia-hnw-customers/2194-93.html

https://www.kenresearch.com/banking-financial-services-and-insurance/financial-services/wealth-china-hnw-customers/2198-93.html

Contact:
Ken Research
Ankur Gupta, Head Marketing & Communications
query@kenresearch.com
www.kenresearch.com