Kevin Greenard: Wealth management involves a team of specialists

Kevin Greenard: Integrating Banking and Wealth Administration Divisions

As our shoppers become old and accumulate extra wealth, there’s a need to simplify and cut back the variety of accounts and the variety of monetary establishments they’re coping with.

We’re at all times interested in folks’s selections in regards to the monetary establishment they cope with for his or her day-to-day banking and lending wants.

As an illustration, now we have reviewed conditions the place shoppers maintain a number of financial institution accounts amongst a number of establishments. I’ve additionally seen a number of financial institution accounts held at one establishment. Lastly, now we have seen conditions the place important money ranges in financial institution accounts earn little to nothing.

We perceive that some folks categorize their cash into totally different accounts; that is typically the case with youthful folks. For instance, they could wish to segregate financial savings right into a journey account, new automotive account, emergency fund, and so forth.

Nonetheless, we usually see that this compartmentalization shifts as our shoppers become old and accumulate extra wealth. Consequently, there’s a need to simplify and cut back the variety of accounts and the variety of monetary establishments they’re coping with.

Along with a Wealth Administration division, all massive monetary establishments have a banking aspect. They’ve extra areas, have massive signage, and you may stroll in throughout regular enterprise hours.

For example, Scotiabank has 19 branches on Vancouver Island. The wealth administration division has fewer areas and fewer outstanding signage; conferences are achieved by appointment. The wealth administration division is ScotiaMcLeod, with 4 areas on Vancouver Island.

Once we are onboarding new shoppers, we’re required to ask for his or her banking particulars. The request typically creates a dialogue concerning whether or not they have any excellent loans, traces of credit score, and their general money stream and banking wants. Nearly at all times, periodic, or month-to-month transactions are deliberate between banking and wealth administration divisions.

Once we ask folks to supply their banking particulars, we frequently get requested the 2 questions under:

1) Are we required to have a checking account at Scotiabank after we open funding accounts at ScotiaMcLeod?

The reply is “no, shoppers can have their banking relationship at any Canadian monetary establishment.” Altering wealth administration companies is often a primary step and a giant step for a lot of of our new shoppers. We clarify to them that we may hyperlink their present chequing account, whatever the monetary establishment, to their ScotiaMcLeod funding accounts.

2) Ought to now we have our financial institution accounts at Scotiabank?

When new shoppers ask us if they need to open financial institution accounts at Scotiabank, we are going to assessment their present banking scenario and wishes. We make notes of any debt balances, maturity dates, banking targets, and so forth. A part of this dialogue then results in us explaining the various advantages that wealth administration shoppers have by having their financial institution accounts on the identical monetary establishment. Roughly 70 % of our shoppers have their day-to-day banking relationship with Scotiabank.

Beneath are a number of the primary dialogue factors now we have talked to shoppers about when contemplating aligning their financial institution and wealth administration accounts to be on the identical monetary establishment.

Relationships Are Key

The companies the financial institution presents are very a lot complementary to the companies we offer; nonetheless, our companies are totally different.

Day by day we speak with our companions at Scotiabank. Figuring out the important thing folks helps our shoppers by connecting them with the correct specialists to assist them with their banking wants. If a shopper has borrowing wants for a enterprise enterprise, actual property transactions, and so forth., we will direct them to the correct folks at Scotiabank.

If our shoppers do their banking at one other establishment, we’d not be accustomed to the correct folks at a distinct monetary establishment. If a shopper is annoyed that they aren’t getting good service on the financial institution they’re utilizing, we’re at all times out there to introduce our nice shoppers to nice folks on the financial institution that we all know will have the ability to help them.

Verbal cellphone calls

In speaking to shoppers, we put lots of emphasis on constructing a superb relationship along with your banker. They are often an infinite asset to you. When a banker is aware of you, they will typically assist you to over the cellphone and by electronic mail. In the event that they don’t know who you might be, that is typically not attainable.

When a necessity arises, we will cellphone the employees on the financial institution with our shoppers in our workplace to handle the necessity. Typically, the financial institution would require some monetary info that our division has, and with the shopper’s consent, we will share this info. This mixed collaboration is really what complete wealth administration is about – making issues as simple as attainable for our mutual shoppers.


Canadian monetary establishments supply numerous companies with specialists to fulfil our shoppers’ wants. For instance, Scotiabank has Small Enterprise advisors to service our small enterprise homeowners/shoppers with complete recommendation and have interaction in long-lasting and profitable enterprise relationships whereas providing product options akin to enterprise checking account openings and enterprise lending, amongst others.

Like different monetary establishments, Scotiabank dedicates a group of advisors to help with numerous private borrowing (i.e., mortgage specialists) and financial savings options, funding, and monetary planning. Having a group of specialists devoted to shoppers’ distinctive life phases and wishes permits the financial institution to develop long-lasting relationships with its prospects whereas having a group with the experience to assist with any activity or shopper’s want.

Consolidated View

Shoppers with banking and wealth administration companies at one monetary establishment can simply observe their monetary place. With only one login to on-line companies, you possibly can see all of your financial institution accounts and funding accounts in a single mixed view. This may be helpful when managing money flows, transfers between accounts, and monetary planning (monitoring funds and making ready web value statements).

Transferring Funds Is Simpler

Typically, a shopper will wish to transfer funds from a checking account to an funding account. In years previous, shoppers would usually write a cheque. Cheques contain time to bodily write the cheque out and ship it to the wealth administration agency. Supply was usually achieved by driving to our workplace and dropping it off or sending a cheque by courier or common mail.

As we speak, practically all our funds’ transfers are achieved by means of on-line transfers, establishing payees, or direct debit requests. Beneath now we have outlined all three of those choices.

On-line Transfers

On-line transfers are seamless when utilizing the Scotia On-line companies. Our shoppers can simply switch funds on-line from a checking account to their non-registered funding account. This function is helpful when shoppers wish to ship cash to make a Registered Retirement Financial savings Plan (RRSP) contribution, to high up Tax-Free Financial savings Accounts (TFSA), or to contribute more cash to their non-registered funding accounts, akin to a company account.

On-line transfers could be comparatively environment friendly; nonetheless, some monetary establishments will restrict the each day switch quantity. Scotiabank limits each day on-line transfers to $100,000.

Setting Up Payee

A technique across the each day on-line switch limits is to arrange the non-registered ScotiaMcLeod funding account as a payee below the invoice funds part of on-line banking. This motion is similar to making a utility invoice fee. We encourage shoppers to ship $1 as a check earlier than sending any bigger greenback quantities. We all know that this method works seamlessly between Scotiabank and ScotiaMcLeod.

Direct Debit Request

For shoppers which have a Scotiabank chequing account, we will have our shoppers signal a direct debit request type. Internally, we use a CA41 Kind. It allows us to tug funds from our shoppers’ Scotiabank financial institution accounts and switch them into their non-registered ScotiaMcLeod funding accounts (i.e., particular person money account, joint with proper of survivorship account, and company account).

A easy cellphone name can do that, and there’s no greenback threshold to switch. If we obtain the request earlier than 12:30 p.m., we will ask for the funds for a similar day. This course of saves our busy shoppers a considerable period of time. We will solely use the CA41 type with shoppers who maintain their financial institution accounts at Scotiabank.

Canadian Financial institution Account

When shoppers come to see us, they typically have two or extra totally different Canadian financial institution accounts. In some instances, they’ve a number of financial institution accounts at totally different monetary establishments. Our suggestion is to simplify the banking element to have one chequing account. That is notably necessary as our shoppers become old and need transactions to be automated as a lot as attainable.

We encourage our shoppers accumulating OAS, CPP, or different pensions to have these funds paid right into a single chequing account. Withdrawals from ScotiaMcLeod funding accounts are arrange as a Systematic Withdrawal Plan (SWIP), lump-sum requests, or sort 3 account (transfers revenue solely) – all receives a commission into the Canadian checking account.

U.S. Greenback Credit score Card

Many consumers that journey incessantly might profit from a U.S. greenback visa card. When touring within the U.S. or ordering objects in U.S. {dollars} on web sites, they’ve a bank card that can preserve the costs in U.S. {dollars}.

Though shoppers can use a Canadian greenback bank card, the last word conversion prices can be decided on the time of the transaction, whether or not that’s beneficial or not. Additionally, smaller transactions on a bank card would have a wider unfold for forex conversion. Sometimes, our shoppers with a U.S.-dollar Scotiabank bank card even have a U.S.-dollar checking account.

U.S. Greenback Financial institution Account

Many consumers have U.S. greenback Scotiabank accounts linked to their Scotia Wealth Administration account. For instance, the funding portfolio at Scotia Wealth Administration would have many U.S. dividend-paying equities.

At any time when our shoppers want U.S. money, we will transfer U.S. {dollars} instantly from their funding account to their checking account by means of a verbal cellphone name, offered the U.S. greenback checking account is at Scotiabank and now we have the main points (i.e., full U.S. account quantity linked to their account profile). There isn’t any value to switch funds from ScotiaMcLeod to Scotiabank.

This facility is handy for our shoppers who’re away for over a month and should pay U.S.-dollar bills. They could name us to maneuver U.S. funds into their U.S. checking account. Our shopper will then log into Scotia On-line and switch U.S .funds to pay for the U.S. visa.


When our shoppers are considering a transfer from one private residence to a different, serving to an grownup little one purchase a house, or needing banking companies, we’re in a greater place to make sure they’re talking with the correct particular person based mostly on {our relationships} with Scotiabank.

For instance, there are House Financing Advisors that we work with. With the shopper’s consent, we will simply share info with them by means of our intranet, a personal community system, to keep up safety and management. This referral motion usually saves our shoppers a substantial period of time.


The primary merchandise we assessment with shoppers in each assembly is how a lot cash they’ve within the financial institution and whether or not they want us to ship any cash to them. Along with asking them what they at the moment have of their financial institution, we are going to ask them what their money stream necessities are over the subsequent 24 months.

It’s at all times a stability of making certain money balances are getting an applicable return whereas making certain money is obtainable when wanted with out having to promote investments on the mistaken level within the fairness market cycle.


We regularly advocate that our shoppers shut all pointless financial institution accounts, making money stream administration and tax reporting simpler. Extra importantly, it would simplify their life. With many savings-type accounts, you get the next charge with greater balances.

Simplifying is particularly necessary as our shoppers become old and request help from relations. Making issues simpler for your self may also make it simpler for others to help you.

Banking Energy of Legal professional

We discover a few of our shoppers want help with banking actions. When shoppers are getting older, we frequently speak to them about establishing banking energy of lawyer. This doc differs from a authorized energy of lawyer achieved by means of a lawyer.

A banking energy of lawyer would allow a named particular person they belief to cope with the day-to-day financial savings and chequing accounts. It additionally allows them to cope with bank cards and different debt merchandise, akin to traces of credit score and mortgages.

A banking energy of lawyer can help with monitoring transactions to make sure no irregular exercise. Help could be offered by accessing and studying financial institution statements. As a result of mobility points might restrict the flexibility to enter a bodily department, on-line choices exist.

Generally on-line choices are a problem due to poor eyesight or presumably not understanding new know-how and the implementation of safety measures to guard accounts. Normally, after we focus on banking energy of lawyer, this identical particular person(s) may also have monetary energy of lawyer arrange on the funding accounts inside ScotiaMcLeod.

Property Planning

Generally, we’re requested whether or not to have particular person non-registered financial institution accounts and funding accounts or whether or not they need to add a trusted particular person (i.e., grownup little one) joint on the account. This generally is a lengthy dialog concerning funds, incapacity, probate dialogue, and property planning. Having an built-in plan for the banking and funding divisions is at all times necessary.

Kevin Greenard CPA CA FMA CFP CIM is a Senior Wealth Advisor and Portfolio Supervisor, Wealth Administration with The Greenard Group at Scotia Wealth Administration in Victoria. His column seems each week at Name 250.389.2138, electronic mail, or go to

Previous Post Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *