In a recent interview, Tara Kennedy, Vice President and Head of Capital Markets, and David Mak, Executive Director of Securities Finance at Wealthsimple, discussed the firm’s transition from a managed investing company to a full-service financial platform. The conversation covered various topics, including the performance of Wealthsimple’s securities lending programme, the challenges and risks associated with securities lending, and the firm’s future plans and aspirations.
David Mak provided an overview of the growth and success of Wealthsimple’s fully paid lending programme over the past 12 months. He emphasized the program’s rapid uptake, with a third of eligible accounts opting in within just 15 months of its launch. Mak highlighted the significance of client feedback in continually enhancing the program and expanding its offerings.
Tara Kennedy pointed out that market events and client demand in the past year have shaped Wealthsimple’s current position and future trajectory. She highlighted the surge of retail investors entering the market, driven by events such as meme stocks and the pandemic. Kennedy noted that these developments have presented Wealthsimple with an opportunity to build and iterate its platform to better serve retail investors, citing an average of US$1 billion in net deposits per month as evidence of their resonance with clients.
Kennedy also addressed the regulatory initiatives that will require the most attention from Wealthsimple in the coming year. She emphasized the firm’s investment in talent and expertise to navigate Canada’s highly regulated environment for securities lending. Additionally, Kennedy highlighted the need for greater adoption of automated investment account transfers and expressed hope that Canadian regulators will succeed in increasing the adoption of automated transfers.
Mak discussed the challenges and risks associated with securities lending, emphasizing the importance of client education and informed decision-making. He stressed the need for clients to understand the fully paid lending programme and to have autonomy in choosing whether to participate in it.
Looking ahead, Kennedy discussed Wealthsimple’s plans to invest in its technology stack to empower clients and expand its securities lending offerings. She mentioned the firm’s aspirations to grow its offerings, including margin accounts, while acknowledging that it is still in the early stages.
Finally, Mak expressed the firm’s honour at being shortlisted for the ‘New Securities Finance Team of the Year’ category at this year’s SFT Awards. He highlighted Wealthsimple’s commitment to providing a best-in-class experience for clients and its unique blend of technology and industry knowledge, which has contributed to the creation of one of the best fully paid lending programmes in Canada.
In conclusion, the interview with Wealthsimple’s Tara Kennedy and David Mak provides valuable insights into the firm’s trajectory, its commitment to innovation and client-centric services, and its aspirations for the future. As they continue to evolve and expand, Wealthsimple remains dedicated to democratizing finance for its clients and all Canadians.