Fintech Advisory Service Spring 2020

A State of Flux: How Direct-to-Consumer Channels Are Managing the COVID Crisis

For Canada’s direct-to-consumer (D2C) channels, which include both the online/discount brokerage and robo-advice businesses, the first quarter of 2020 was a tumultuous time… but one which came with a silver lining. The environment created by COVID-19 brought social distancing measures, a violent equity market selloff, and record levels of new business. From an influx of new deposits to soaring trading volume and a torrent of new accounts, the first quarter set records across direct distributors who were also busy managing heightened client servicing requirements and transitioning their workforces to operate remotely. This research feature profiles the D2C business through this chaotic period and discusses the potential long-term opportunities that may emerge on the other side.