Canadian Online Brokerage: A Market Comes of Age

Report from Celent Communications says BMO Nesbitt Burns Full-Service

Online Leads the Way in Canada



Apr 02, 2001, 01:00 ET from Celent Communications

    BOSTON, April 2 /PRNewswire/ - The Canadian online brokerage market,
 although younger and smaller than its US counterpart, is showing the same
 signs of expansion and an overall rise in adoption rates. That finding is
 contained in a newly released report by e-commerce consultancy firm Celent
 Communications. A second report indicates the current industry leader in full-
 service online brokerage in Canada, is Bank of Montreal's BMO Nesbitt Burns.
     The first study, "Canadian Online Brokerage: A Market Comes of Age,"
 indicates that Canada's online investment community, while somewhat buffeted
 by recent market volatility, still continues to grow in terms of accounts and
 assets. Many brokerage firms reported much greater than expected growth in
 2000 and are preparing for continued growth in 2001.
     Additionally, the rise of the mainstream investor segment in Canada
 provides increased opportunity for those firms willing and able to evolve
 their service to offer more robust research, analytical tools and advice. The
 full service firms, now just making a foray into the online market, will find
 themselves in position to attract large numbers of these mainstream investors.
     According to Fritz McCormick of Celent, "Discount firms will have to
 fight to keep their existing accounts and will also have to strive to evolve
 and meet the needs of the increasingly savvy Canadian retail investment
 community. Those firms without the ability or willingness to add new products
 and services will quickly fall prey to their competition, and some degree of
 consolidation is very likely in the next year."
     Along with Celent's report looking at the overall Canadian online
 brokerage market, a separate study, "BMO Nesbitt Burns: Leading the Full-
 Service Online Brokerage Charge in Canada," was also released.
     BMO Nesbitt Burns, Bank of Montreal's full-service investing business, is
 the leading full service online investment firm in Canada, according to the
 Celent report. This case study shows the timeline of BMO Nesbitt Burns Full-
 Service Online Internet delivery project, the targeted clients, fees and
 pricing, as well as a discussion of the firm's technology choices.
     "The North American online brokerage market continues to evolve into the
 full service e-brokerage phase," said Mr. McCormick. "We believe that BMO
 Nesbitt Burns' multi-channel, fee-based online brokerage offering will capture
 a significant share of the Canadian market."
     Members of Celent Communications Retail eTrading research service can
 download either report at www.celent.com. Copies are also available for media.
 
     About Celent:
     Celent Communications is a Boston-based management consultancy focused on
 the role of e-commerce and the Internet in the financial services industry. In
 addition to strategy consulting, Celent provides its clients with continuous
 advisory services, keeping banks, brokerage firms and insurance companies up
 to date on the latest developments in financial services.
 
 

SOURCE Celent Communications
    BOSTON, April 2 /PRNewswire/ - The Canadian online brokerage market,
 although younger and smaller than its US counterpart, is showing the same
 signs of expansion and an overall rise in adoption rates. That finding is
 contained in a newly released report by e-commerce consultancy firm Celent
 Communications. A second report indicates the current industry leader in full-
 service online brokerage in Canada, is Bank of Montreal's BMO Nesbitt Burns.
     The first study, "Canadian Online Brokerage: A Market Comes of Age,"
 indicates that Canada's online investment community, while somewhat buffeted
 by recent market volatility, still continues to grow in terms of accounts and
 assets. Many brokerage firms reported much greater than expected growth in
 2000 and are preparing for continued growth in 2001.
     Additionally, the rise of the mainstream investor segment in Canada
 provides increased opportunity for those firms willing and able to evolve
 their service to offer more robust research, analytical tools and advice. The
 full service firms, now just making a foray into the online market, will find
 themselves in position to attract large numbers of these mainstream investors.
     According to Fritz McCormick of Celent, "Discount firms will have to
 fight to keep their existing accounts and will also have to strive to evolve
 and meet the needs of the increasingly savvy Canadian retail investment
 community. Those firms without the ability or willingness to add new products
 and services will quickly fall prey to their competition, and some degree of
 consolidation is very likely in the next year."
     Along with Celent's report looking at the overall Canadian online
 brokerage market, a separate study, "BMO Nesbitt Burns: Leading the Full-
 Service Online Brokerage Charge in Canada," was also released.
     BMO Nesbitt Burns, Bank of Montreal's full-service investing business, is
 the leading full service online investment firm in Canada, according to the
 Celent report. This case study shows the timeline of BMO Nesbitt Burns Full-
 Service Online Internet delivery project, the targeted clients, fees and
 pricing, as well as a discussion of the firm's technology choices.
     "The North American online brokerage market continues to evolve into the
 full service e-brokerage phase," said Mr. McCormick. "We believe that BMO
 Nesbitt Burns' multi-channel, fee-based online brokerage offering will capture
 a significant share of the Canadian market."
     Members of Celent Communications Retail eTrading research service can
 download either report at www.celent.com. Copies are also available for media.
 
     About Celent:
     Celent Communications is a Boston-based management consultancy focused on
 the role of e-commerce and the Internet in the financial services industry. In
 addition to strategy consulting, Celent provides its clients with continuous
 advisory services, keeping banks, brokerage firms and insurance companies up
 to date on the latest developments in financial services.
 
 SOURCE Celent Communications