A growing number of young folks are getting their investment advice from the same place they shop, date, and fawn over videos of baby hippos: the internet.
Driving the news: More young Canadians are spurning traditional financial advisors in favour of the do-it-yourself approach, according to a new survey by Vanguard Canada. Only 38% of Canadians aged 18 to 34 use an advisor compared to 70% of those 55 and older.
- A big part of the shift is the rise of personal finance content on social media, Gen Z’s primary source of financial info. Almost a third turn specifically to financial influencers, or finfluencers, for advice.
Why it’s happening: The rise of both digital investment platforms like Wealthsimple and online finance content has created a more affordable alternative to traditionally pricey financial advisors.
- Millennial and Gen Z investors now make up 66% of DIY brokerage customers, while Canada’s big banks are seeing the opposite: two-thirds of their clients are now Gen X or older.
Bottom line: The Big Six banks still manage 63% of all household wealth in Canada, but as more young people take matters into their own hands, the financial advisor role may need to evolve to cater to younger generations’ hands-on approach.—LA