05 Feb 2019

Five Providers of Canadian FinTech-Enhanced Wealth Management Solutions Named as IDC Innovators

TORONTO, ON., February 7, 2019 — International Data Corporation (IDC) Canada today published an IDC Innovators report profiling five companies that offer compelling and differentiated FinTech-enhanced wealth management solutions. The five companies named as IDC Innovators are Justwealth Financial, Nest Wealth Asset Management, Responsive Capital Management, WealthBar, and Wealthsimple.

Robo-investment advisors require technology that can help clients build their investment portfolios by identifying their investment objectives and risk tolerance. Robo-advisors provide automated account opening and know your client (KYC) data capture. Most build model portfolios using exchange traded funds (ETF) and match these to clients' investment and risk parameters. A few provide portfolios that are uniquely configured for each client. However, most robo-investment managers do not actively manage ETF-based portfolios. While the use of smart decision technology is growing, there is still a long way to go before true AI-driven portfolios are available.

"FinTech wealth management firms will need to be vigilant," says Robert Smythe, research associate, IDC Financial Insights, "as major banks have the ability to quickly introduce digital wealth management processes or acquire FinTech competitors when robo-wealth managers become significant competitors.

  • Justwealth Financial offers robo-advisor technology with a human personal portfolio manager who provides the support that affluent investors seek.
  • Nest Wealth Asset Management uses ETF portfolios and digitally personalized portfolios, while offering an attractive fee structure to investors with large portfolios.
  • Responsive Capital Management uses an AI-assisted portfolio development and management solution using a broad range of low-cost ETFs that is overseen by dedicated investment advisors.
  • WealthBar pioneered the robo-adviser model in Canada in 2013 and today it uses ETF portfolios and provides access to Nicola Wealth Management.
  • Wealthsimple provides auto pilot investing using smart technology and exchange traded funds while offering a comprehensive wealth management platform.

The report, IDC Innovators: Canadian FinTech-Enhanced Wealth Management Solutions, 2019 (IDC# CA44400919) profiles five emerging vendors with compelling and differentiated FinTech-enhanced wealth management solutions in the Canadian market.

About IDC Innovators

IDC Innovators reports present a set of vendors – under US $100M in revenue at time of selection -- chosen by an IDC analyst within a specific market that offer an innovative new technology, a groundbreaking approach to an existing issue, and/or an interesting new business model. It is not an exhaustive evaluation of all companies in a segment or a comparative ranking of the companies. Vendors in the process of being acquired by a larger company may be included in the report provided the acquisition is not finalized at the time of publication of the report. Vendors funded by venture capital firms may also be included in the report even if the venture capital firm has a financial stake in the vendor’s company. IDC INNOVATOR and IDC INNOVATORS are trademarks of International Data Group, Inc.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com  or follow on Twitter at @IDC and LinkedIn. To learn more about IDC Canada, please visit www.idc.com/ca or follow on Twitter at @ idccanada and LinkedIn.