Canadian Treasurer

March 18, 2016

Start-up Tridus launches with vision to disrupt Canadian wealth management industry

VANCOUVER--Two Vancouver-based fintech start-ups are poised to shake up the Canadian wealth management industry in the coming months. Tridus Wealth Management (Tridus) is looking to create a radically different wealth management firm, and is launching today in partnership with local fintech research and development firm Cassia Research. The partnership mandate is simple: to create Canada’s first officeless, paperless, full-service wealth management company.

Tridus is kicking-off its first recruitment phase, and is now searching for financial advisors from all over Canada to join its network of next-generation wealth managers.

Tridus will offer a cloud-based, cross-platform suite of automated software that will give financial advisors and their clients full-service financial advising tools at their fingertips. Importantly, this will allow advisors the time to build and nurture longer-term relationships, improving client retention through personalization and trust. This will also be the first time in Canada when investors at all levels gain access to institutional-grade risk management – technology usually only reserved for investors with millions. Combined with Cassia’s software, the Tridus platform is set to also democratize financial risk management in Canada.

Current industry challenges
The new partnership will help solve numerous industry issues, including rampant lack of transparency and accountability, heavy overhead costs, and mounds of paperwork currently plaguing advisors — all preventing clients from easily accessing full, up-to-date information about their finances, and stalling advisors with administrative and compliance work.

It will also place an emphasis on human relationships once again — a step away from robo-advisors, which are getting a mixed reaction across North America.

“The problem right now is that the human element is drowning in paperwork and compliance,” says Tridus founder and CEO, Harry McLaughlin. “We want to free up financial advisors so they can maintain relationships and help their clients understand what their wealth means to them.”

“The business model isn’t just a drastically different mode of working for financial advisors — it makes fundamental changes that will disrupt the Canadian wealth management industry,” adds McLaughlin.

New industry regulations

The Tridus-Cassia Research partnership has been launched just in time to help financial advisors adapt to the new industry regulations coming into play on July 15. These will force the Canadian wealth management industry to disclose exactly how much advisors are charging their clients.

The legislation will impact more than 100,000 financial and insurance advisors currently operating across Canada. As this and further future regulations come into effect to protect Canadian investors, even more paperwork will be needed for financial advisors to analyze and communicate about fees, financial risk and other topics. The current methods companies are using to manage these needs are not sustainable.

Canada’s fintech revolution
The Tridus-Cassia Research partnership makes it the first group in Canada to do what is already common in other jurisdictions, including the United States, that have revamped their wealth management industries to be more cost-effective, transparent, modern and mobile.

“We see inefficiency and lack of transparency as global problems on a massive scale,” says Henry Bee, CEO of Cassia Research. “We’re about solving the asymmetry of information between the producer and the consumer, and democratizing the financial management tools that until now have been only available to the rich. Put simply, everybody has the right to have a financial seatbelt. It shouldn’t just be reserved for the Rolls-Royce owners.”

“Canadians are going to become aware of what fees they’re paying, and they’re going to demand lower fees and better services. If that’s going to be the trend, as it has been in the U.S., it’s a natural next step for advisors in Canada,” adds McLaughlin. “We’re getting ready to take them on and offer them more for less. This is the beginning of Canada’s wealth management revolution."




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