RBC is counting on technology to grow its U.S. wealth management business.
“In U.S. wealth management, we remain focused on organically scaling our platform by adding experienced advisors and leveraging our investment in new products and technology,” RBC president and chief executive officer Dave McKay said Thursday during the firm’s first-quarter 2022 earnings call. RBC’s first quarter ended on January 31.
The client digital portal Wealth Management Online “may be the most impactful” of these technology investments, RBC Wealth Management U.S. head of technology Greg Beltzer told FA-IQ.
“Clients enjoy a secure, modernized experience where they can view their entire financial picture, access research and in-depth analysis, securely collaborate with their advisor on their WealthPlan, aggregate assets and liabilities in one place, transfer funds and more,” Beltzer said.
For advisors, Advisor Desktop, powered by customer relationship management software provider Salesforce, “has allowed for us to differentiate ourselves from our peers by integrating various platforms and data into a holistic Client 360 that powers the advisor and their teams to service their clients efficiently,” Beltzer said.
“Our priorities in 2022 will be to deliver a best-in-class client reporting by partnering with Addepar, evolve and further mature our advisor and client onboarding process leveraging the expertise of Docupace and enhance and improve Wealth Management Online,” Beltzer added.
Addepar, a wealth management technology platform, said in January that it had added RBC Wealth Management U.S. as a new customer of its data aggregation, analysis and reporting platform. Docupace is a wealth management back office operations digital platform, according to its website.
“Since the start of fiscal 2019, we have hired financial advisors who are expected to bring in over $60 billion U.S. dollars of AUA. These advisors are attracted to our client-first culture coupled with our leading integrated technology platform,” McKay said during the earnings call.
U.S. wealth management is also “building a completely new technology platform,” McKay said during the call.
“That investment has led to an $8 billion secure lending portfolio with $80 million of revenue,” McKay added during the call.
McKay was referring to RBC’s Credit Access Line product, which is “fully integrated into Salesforce and WMO [Wealth Management Online] and is powered by Supernova,” according to Beltzer. Supernova is a lending software provider, according to its website.
RBC’s U.S. wealth management business, including City National, had $560.8 billion in assets under advisement in the first quarter of 2022, down slightly from $568.8 billion in the fourth quarter of 2021 but up from $487 billion in the first quarter of 2021, according to its earnings report supplement.
Revenue for the U.S. wealth management business was $1.359 billion in the first quarter of 2022, up from $1.296 billion in the fourth quarter of 2021 and $1.196 billion in the first quarter of 2021, according to the earnings supplement.
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