Now, the wholly-owned subsidiary of Edward D. Jones & Co. is doubling down on planning.
“Our biggest bet is on financial planning being the core of our value proposition, said Scott Sullivan, principal, Canadian business segment leader in an interview with us on Thursday.
Edward Jones is in the midst of a cross-Canada rollout of Conquest Planning’s enterprise technology platform.
“We are a planning firm already,” Sullivan said. “We’ll be even more so once people have some time to get used to the tools and apply them in their conversations with clients and their families.”
Julie Petrera, director of financial planning at Edward Jones said the shift aligns with the industry’s move from “a very transactional business, leading with product and sales, toward delivering comprehensive planning.”
The strategy makes sense. Given criticisms Edward Jones has faced on its fee structure, the firm is not well positioned to compete with larger brokerage firms. Its challenge will be to provide the kind of high-touch service leadership is describing while navigating the demands of total cost reporting.
One aspect of the Edward Jones approach that may deliver it an advantage is its willingness to serve younger clients, in the hopes of building long-term relationships that will turn more profitable in time.
Sullivan said the firm’s target is affluent and emerging affluent Canadians.
“Ideally, we get them a bit younger, on the cusp of having more complex needs,” he said. “I think our average client acquisition is 47 years old right now — our average client would still be north of that. So, we’re looking to get a bit younger in terms of who we bring on board.”
Sullivan continued, “We think there should be a democratization of advice. We think there should be access to human advice, no matter where you are. That’s why you’ll find we’re in big and small towns all over Canada.”
The firm offers family-friendly pricing, which he hopes will encourage “conversation with younger clients,” he said. “We don’t have shareholders that we have to satisfy on a quarterly basis, which means we can take a longer-term view with these relationships. We know it will be beneficial to everyone in the end if you have those conversations early. Even if you’re not making as much money off them early on, you’re setting the foundation for the future.”