The Future of Finance Starts Now
How millennials, Canada’s most populous adult generation, are shaping the way we invest
Change is inevitable, and though it may sometimes feel abrupt, we need to embrace it. In the world of finance, big change comes in generations and can even impact how we manage our money. Cut to: RBC InvestEase®, the digital investing platform that makes saving for your future, well, easier. Facing unique challenges in building wealth, millennials have welcomed innovative financial solutions that work to make investing more accessible. As the most populous adult generation in the country, the choices and investment patterns made by millennials—influenced by social, environmental and political matters—will play a big role in the world of investing for generations to come.
Here’s a look at some of the ways the future of finance starts now:
Technological Integration
In both our professional and social lives, technology has kept us connected during a time defined by distancing. Like many industries forced to re-strategize in the wake of the pandemic, the financial sector has integrated technological solutions to meet their clients’ needs. Rajan Bansi, Head of RBC InvestEase, sees this as a major improvement. “With RBC InvestEase, technology is being used as a helpful tool and doing so in a way that places the client in the centre of it all,” says Bansi. With Canadians now growing more and more dependent on online services, financial institutions are expected to provide that increased level of access. “It’s an important challenge to live up to,” adds Bansi.
RBC InvestEase is a user-friendly, secure platform designed to make the experience of setting up an investing account as low-effort as you’d like it to be. It takes only a smartphone and a wi-fi signal for new clients to open an account and begin investing with as little as $100*. Clients can sign up on their own accord, from the comfort of their home and provide their investor profile information such as their risk tolerance and time horizon. “I think what has started now—and is going to continue to accelerate—is that consumers are realizing that they can invest with the help of professionals in a digital setting,” says Bansi. “At RBC, our framework today is going to be different from what it will be tomorrow as we continue to keep-pace and respond to what Canadians want.”
The future of finance is consumer-powered.
Consumer Power
Younger generations are influencing responsible investing. As a result, portfolio managers that embrace Environmental, Social and Governance (ESG) stocks continue to outperform their peers. Companies that meet ESG criteria (a set of standards for a company’s operations) attract socially-responsible investors (many of which are millennials). It’s a trend on the rise and likely to stay, a generational influence many investors now consider a part of future-proofing your portfolio. “I think they are the present and future,” says Bansi. “ESG allows every Canadian to make an impact in the world with their money, in the same way we do with our everyday purchases.”
Democratization
Financial illiteracy and high start-up costs are two common obstacles preventing people from investing in their futures. Many people grow up believing that investing is only for the rich, and as a result feel it’s out of reach. A low-barrier-to-entry option for investors, RBC InvestEase is reintroducing investing to Canadians by making it more widely accessible. “RBC InvestEase allows anyone to open an account with a $0 minimum balance, which once it exceeds $100*, we can start investing.” says Bansi. “It’s a vital step RBC is taking to bring professional investment management to every Canadian.”
It’s also a matter of encouraging investors to make educated decisions and avoid falling into a gamification trap. With RBC InvestEase, professionals are ready to lead clients in the right direction by thoroughly researching investment options and curating a successful portfolio. For Bansi, this source of guidance is the most important consideration to have. Ultimately, as economic and social changes continue to shape the world and those investing in it, financial democratization will ensue. As the ways in which we invest continue to reform and reflect the needs of Canadians, the future of finance is bright.
Interested in learning more? On February 25, Toronto Life will be hosting a Virtual Fireside Chat with Rajan Bansi and Debbie Gamble, the Chief Officer Innovation Labs & New Ventures at Interac Reports. During the chat, Rajan and Debbie will discuss the evolution of money. From digital privacy, to Artificial Intelligence, cryptocurrency and the transformation of payment technology, don’t miss out on this engaging conversation about what the future of spending and saving may look like. Register for the event here.
Start looking ahead and open your first RBC InvestEase account and pay no management fee for 1 year**. Offer ends Mar 31, 2021. Click here to sign up!
*There is no minimum balance for an account. An account with a balance of less than $100 will be invested in cash. An account with a balance between $100 and less than $1,500 may be allocated to a Small Balance Portfolio investing in a limited selection of RBC iShares ETFs and/or cash. A Small Balance Portfolio follows similar risk profiles to our standard portfolios while investing in fewer RBC iShares ETFs.
**To take advantage of this offer you must not have held an RBC InvestEase account prior to January 1, 2021. Accounts opened from January 1, 2021 to March 31, 2021 using promo code AA858 will not be charged the regular 0.5% management fee by RBC InvestEase for 12 months from the date of account opening. RBC InvestEase will notify clients 60 days in advance of any changes to the fees associated with their account as set out in the investment management agreement. A weighted average management expense ratio between 0.11-0.30% will still apply to the ETFs held in our portfolios. This offer cannot be combined with any other offers.RBC InvestEase Inc. reserves the right to amend or withdraw this offer at any time without notice.
RBC InvestEase Inc. provides online discretionary investment management services. Other products and services may be offered by one or more separate corporate entities that are affiliated to RBC InvestEase Inc., including without limitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC Dominion Securities Inc., RBC Global Asset Management Inc., Royal Trust Corporation of Canada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase. In addition, the RBC iShares ETFs in which RBC InvestEase Inc. clients invest are managed by BlackRock Asset Management Canada Limited. RBC Global Asset Management Inc. and BlackRock Asset Management Canada Limited have entered into a strategic alliance to bring together their respective ETF products under the RBC iShares ETF brand, and to offer a unified distribution support and service model for RBC iShares ETFs.
®/™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
 stocks continue to outperform their peers. Companies that meet ESG criteria (a set of standards for a company’s operations) attract socially-responsible investors (many of which are millennials). It’s a trend on the rise and likely to stay, a generational influence many investors now consider a part of future-proofing your portfolio. “I think they are the present and future,” says Bansi. “ESG allows every Canadian to make an impact in the world with their money, in the same way we do with our everyday purchases.”
Democratization
Financial illiteracy and high start-up costs are two common obstacles preventing people from investing in their futures. Many people grow up believing that investing is only for the rich, and as a result feel it’s out of reach. A low-barrier-to-entry option for investors, RBC InvestEase is reintroducing investing to Canadians by making it more widely accessible. “RBC InvestEase allows anyone to open an account with a $0 minimum balance, which once it exceeds $100*, we can start investing.” says Bansi. “It’s a vital step RBC is taking to bring professional investment management to every Canadian.”
It’s also a matter of encouraging investors to make educated decisions and avoid falling into a gamification trap. With RBC InvestEase, professionals are ready to lead clients in the right direction by thoroughly researching investment options and curating a successful portfolio. For Bansi, this source of guidance is the most important consideration to have. Ultimately, as economic and social changes continue to shape the world and those investing in it, financial democratization will ensue. As the ways in which we invest continue to reform and reflect the needs of Canadians, the future of finance is bright.
Interested in learning more? On February 25, Toronto Life will be hosting a Virtual Fireside Chat with Rajan Bansi and Debbie Gamble, the Chief Officer Innovation Labs & New Ventures at Interac Reports. During the chat, Rajan and Debbie will discuss the evolution of money. From digital privacy, to Artificial Intelligence, cryptocurrency and the transformation of payment technology, don't miss out on this engaging conversation about what the future of spending and saving may look like. Register for the event here.
Start looking ahead and open your first RBC InvestEase account and pay no management fee for 1 year**. Offer ends Mar 31, 2021. Click here to sign up!
*There is no minimum balance for an account. An account with a balance of less than $100 will be invested in cash. An account with a balance between $100 and less than $1,500 may be allocated to a Small Balance Portfolio investing in a limited selection of RBC iShares ETFs and/or cash. A Small Balance Portfolio follows similar risk profiles to our standard portfolios while investing in fewer RBC iShares ETFs.
**To take advantage of this offer you must not have held an RBC InvestEase account prior to January 1, 2021. Accounts opened from January 1, 2021 to March 31, 2021 using promo code AA858 will not be charged the regular 0.5% management fee by RBC InvestEase for 12 months from the date of account opening. RBC InvestEase will notify clients 60 days in advance of any changes to the fees associated with their account as set out in the investment management agreement. A weighted average management expense ratio between 0.11-0.30% will still apply to the ETFs held in our portfolios. This offer cannot be combined with any other offers.RBC InvestEase Inc. reserves the right to amend or withdraw this offer at any time without notice.
RBC InvestEase Inc. provides online discretionary investment management services. Other products and services may be offered by one or more separate corporate entities that are affiliated to RBC InvestEase Inc., including without limitation: Royal Bank of Canada, RBC Direct Investing Inc., RBC Dominion Securities Inc., RBC Global Asset Management Inc., Royal Trust Corporation of Canada and The Royal Trust Company. RBC InvestEase Inc. is a wholly-owned subsidiary of Royal Bank of Canada and uses the business name RBC InvestEase. In addition, the RBC iShares ETFs in which RBC InvestEase Inc. clients invest are managed by BlackRock Asset Management Canada Limited. RBC Global Asset Management Inc. and BlackRock Asset Management Canada Limited have entered into a strategic alliance to bring together their respective ETF products under the RBC iShares ETF brand, and to offer a unified distribution support and service model for RBC iShares ETFs.
®/™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada.
){kind=link}