Young Canadian Investors Embrace Human Financial Advice Amid Economic Uncertainty, Reports JD Power
Contrary to predictions that fintech innovations like robo-advisors and artificial intelligence (AI) would replace the need for human financial advisors, new data suggests otherwise. According to the JD Power 2025 Canadian Investor Satisfaction StudySM, younger self-directed investors in Canada are increasingly seeking professional advice, challenging long-held assumptions about their preferences. This marks a significant shift as younger generations, often associated with embracing digital tools, demonstrate a growing openness to traditional advisory services.
Starting this year, the study has undergone a redesign, combining insights from the former JD Power Full-Service Investor Satisfaction StudySM and the JD Power Canada Self-Directed Investor Satisfaction StudySM. The updated research provides a comprehensive view of investor behavior, revealing key trends shaping the wealth management industry.
Younger DIY Investors Are Turning to Advisors
“The study debunks several myths about investor expectations and satisfaction with their investment service providers,” said Kapil Vora, senior director of wealth intelligence at JD Power. “Younger, self-directed investors are more likely to seek professional advice than their older counterparts. Furthermore, very few believe there is enough information online to gain real investment expertise. This highlights the critical importance of accessible and comprehensive education and support, demonstrating that technology alone is not enough to bridge the gap between information and true investment confidence.”
Key findings from the 2025 study include:
- DIY Investors Seeking Advisors:
Nearly 31% of DIY investors say they are likely to use a financial advisor in the next 12 months. This trend is most pronounced among younger generations: 39% of Gen Z and 38% of Millennials express interest in professional advice, compared to just 26% of Gen X and 20% of Baby Boomers/Pre-Boomers. - Simplicity and Enjoyment Drive DIY Preferences:
Among independent investors, the primary reasons for managing their own accounts include the enjoyment of handling investments and finances (45%) and the simplicity of their financial situations (35%). However, these factors do not eliminate the desire for occasional professional guidance, especially during uncertain economic times. - Traditional Firms Lag in Attracting Younger Investors:
Despite high demand for advisory services among younger demographics, traditional wealth management firms in Canada remain disproportionately focused on older investors. Only 20% of clients at traditional firms are under 40, compared to 48% at fintech firms and 28% at banks. This disconnect underscores an opportunity for traditional firms to adapt their offerings to appeal to younger audiences. - Ease of Doing Business Matters:
For advised investors, ease of doing business ranks as one of the most critical dimensions influencing satisfaction with wealth management firms. It accounts for 16% of overall satisfaction, trailing only trust (20%) and people (19%) as foundational elements of a positive investor experience. Streamlined processes and user-friendly platforms can significantly enhance client relationships.
Rankings Highlight Leaders in Investor Satisfaction
The study also reveals which firms excel in meeting investor needs across both advised and self-directed segments:
- Advised Investors:
National Bank Financial leads with an impressive score of 730 (on a 1,000-point scale), followed by Edward Jones (696) and iA Private Wealth (692). These firms stand out for their ability to build trust, provide seamless interactions, and deliver value through personalized advice. - Self-Directed Investors:
Wealthsimple tops the rankings for overall satisfaction among independent investors, scoring 727. Close behind are Dejardins Online Brokerage (Disnat) (655) and Questrade (644). These platforms are praised for their intuitive digital tools, robust product offerings, and commitment to customer support.
For detailed rankings, visit: http://www.jdpower.com/pr-id/2025034.
Redesigned Study Provides Deeper Insights
This year’s Canada Investor Satisfaction Study introduces a fresh approach, assessing investor experiences across seven key dimensions:
- Digital channels
- Ease of execution
- Human interaction
- Product and service offerings
- Problem or complaint resolution
- Trust
- Value of fees paid
The study draws on responses from 4,311 advised investors and 2,417 self-directed investors, collected between October and December 2024. This robust dataset ensures a comprehensive understanding of what drives investor satisfaction in today’s evolving landscape.
Why Human Advisors Remain Essential
While fintech advancements have undoubtedly transformed the financial services industry, the study underscores the enduring value of human advisors. Younger investors, despite being tech-savvy and comfortable using digital platforms, recognize the limitations of purely algorithm-driven solutions. Navigating complex markets, planning for retirement, and addressing unique financial goals often require personalized guidance that AI cannot fully replicate.
Moreover, the study highlights the importance of education and support. Many young investors feel overwhelmed by the sheer volume of information available online but lack the expertise to translate it into actionable strategies. By combining technology with human expertise, wealth management firms can position themselves as trusted partners capable of bridging this knowledge gap.
A Call to Action for Wealth Management Firms
The findings present clear opportunities for firms to better serve younger investors. Traditional wealth managers must modernize their offerings and outreach efforts to attract Gen Z and Millennials. Meanwhile, fintech companies should continue refining their digital platforms while incorporating human touchpoints where needed.
Ultimately, the message is clear: in an era marked by economic uncertainty, investors—regardless of age—value personalized, accessible, and reliable advice. By embracing this insight, wealth management firms can foster stronger relationships, drive higher satisfaction, and secure long-term loyalty.
