Jeremy Simmons, the lead author of the Household Balance Sheet (HBS) report, recently sat down with Asset TV to discuss the report’s enduring legacy and its modern relevance for decision-makers across the wealth ecosystem—from analysts and product heads to senior executives shaping long-term strategy.
For over three decades, the Household Balance Sheet Report from ISS Market Intelligence has served as a trusted guide for understanding Canada’s evolving financial wealth landscape. This year’s edition offers a new section spotlighting the “Mega Trends” and strategic shifts set to shape the next decade for financial services, businesses, and clients across the nation.
With slower growth on the horizon, intensifying competition, and unprecedented access to data, the next decade presents both challenges and opportunities for professionals and firms across the investing ecosystem. Below, we break down the five mega trends shaping Canada’s wealth landscape and what they mean for firms looking to thrive in this evolving environment.
Watch Jeremy’s full video now and read on for key takeaways:
1. Client
At the heart of the industry lies the client. Their evolving needs and preferences will dictate success in the coming years. The upcoming generational shifts are particularly significant:
- Today: Baby Boomers and the Silent Generation control 60% of Canada’s financial wealth.
- By 2034: Their share will drop to 30%, as younger generations accumulate wealth.
This transition means firms must rethink models built for older demographics and adapt to the digital-first, value-driven expectations of Millennials and Gen Z. Personalization and customization will become critical as wealth transfers accelerate.
2. Growth
Over the past decade, Canada’s wealth industry grew at a robust 8% CAGR. Looking ahead, growth is forecasted to slow to 5.9% CAGR. While still positive, this deceleration will have ripple effects:
- Pressure on business models and margins.
- Increased competition for market share.
- Greater emphasis on efficiency and innovation.
Firms that identify new avenues for growth—whether through niche markets, innovative products, or capturing share from competitors—will thrive despite the slowdown.
3. Economics
Economic pressures will reshape traditional business models. Fee compression, margin challenges, and the rise of digital disruptors are forcing firms to rethink their economics. Technology offers scalability and cost management, but it also lowers barriers to entry, inviting new players with innovative models. Expect:
- Continued pressure on traditional pricing structures.
- Emergence of platform-based subscription models.
- Greater focus on delivering value through personalization and advice.
4. Competition
As growth slows, competition will heat up. The next decade will see:
- Direct-to-consumer platforms growing at near double-digit rates.
- Traditional models expanding at mid-single-digit rates.
- Blurring lines between channels and products, driven by innovation.
Digital newcomers and fintech platforms will challenge incumbents, forcing leaders to look beyond their verticals and embrace cross-channel strategies. Success will hinge on agility and the ability to deliver superior client experiences.
5. Data
Data is no longer just an operational tool; it’s a strategic asset. Firms are collecting more client and ecosystem data than ever before. The challenge—and opportunity—lies in leveraging it effectively:
- Personalization: Tailoring solutions to individual needs.
- Innovation: Creating new products and services informed by insights.
- Efficiency: Using analytics to optimize operations and decision-making.
Data and technology will enable firms to anticipate client needs and deliver hyper-personalized experiences, setting leaders apart in a competitive market.
The next decade promises profound change for Canada’s wealth industry. While slower growth, economic pressures, and heightened competition will create challenges, they will also create opportunities. By focusing on these five mega trends—Client, Growth, Economics, Competition, and Data—firms can position themselves for success in an increasingly complex and dynamic market.
