Insights from the annual Online Broker Summit
Last month, leaders of the online brokerage industry gathered at Trading Central’s Online Broker Summit in Montreal to tune into an annual favourite— the Market Trends panel. Each year, TC gathers a handful of expert and unbiased critics from the front line of the financial industry to offer an insightful glimpse at how recent events are driving change. Key topics on the minds of today’s investors and online brokers include data security, regulation changes, ethically responsible portfolios and global investing.
This year’s discussion was moderated by John See, a seasoned financial services professional and the present Vice-Chair at TD Wealth. He led a lively discussion with:
- Keith VanOrden, Managing Director at Blackrock
- Som Seif, Co-founder of Wealthsimple, President of Purpose Investing
- Theresa Carey, Author of Barron’s Annual Review of Online Brokers
- Rob Carrick, Columnist for Globe and Mail
An industry of trust amid security concerns
This year witnessed one of the largest cyber breaches in history, bringing security concerns amongst investors to a peak. The hack of sensitive information at Equifax is said to have affected over 145 million individuals in the U.S., Canada and UK, and carries ramifications of over 80 billion dollars. The company responded poorly to the crisis, sharing nothing with those affected.
Within the US, security has been the number one concern for Barron’s subscribers for over four years and Theresa pointed out many companies may be addressing it incorrectly. While conducting interviews for an article on the topic, she stumbled upon something odd… companies are spending 23 times more resources on securing their perimeter enterprise than they are at securing the application layer. What makes this shocking? 84 percent of today’s breaches are occurring at the application layer.
Within Canada, security is now within the top five financial concerns amongst Globe and Mail readers. Rob pointed out that these growing concerns have created a valuable opportunity to differentiate your firm. Don’t be silent. Putting your security guarantees to the forefront will show you understand their concerns, which can help establish trust.
Regardless of the level of concern, brokers have an obligation to fix any gaps...