Head of Schwab Advisor Services Says RIA Industry Is at an Inflection Point
In keynote address at IMPACT®,
Clark noted that the registered investment advisor (RIA) industry has tripled in size since 2009. While advisors today face new competition and challenges – both market- and industry-related – there remains an expectation among advisors that the growth will continue and even accelerate.
According to results from Schwab’s latest Independent Advisor Outlook Study (IAOS), released today at IMPACT, the majority of advisors (92%) expect the industry to continue to grow and more than a third (37%) believe it will grow at a higher rate than the market.
The majority (94%) of firms expect growth in net new assets over the next year and organic growth is expected to be the key driver (90%). Half (51%) of net new assets are expected to come from new-to-firm clients and an additional 39% from existing clients.
Yet the RIA landscape is also undergoing change, and with that comes challenges. According to IAOS, the top three barriers to growth are new forms of competition, the cost of doing business, and the ability to differentiate.
“Being all in matters more now than ever because we’re at an inflection point,” said Clark. “With all the opportunity that comes with that, there’s also more change, faster change, and more challenges. But in a world where things are seemingly more the same, nobody else is you. You are the differentiation.”
Readying firms for the future
Schwab Advisor Services’ chief operating officer,
The IAOS data shows that the top areas in which advisors are considering making business changes over the next year are technology, operations/workflows, and client acquisition model.
Likewise, Schwab has been investing in its business and is “all in on the custodial experience and evolving for what’s next,” said Beatty. “We are reimagining how we serve advisors to build the RIA experience of the future, moving away from analog behaviors toward digital best practices that strengthen our purpose-built model.”
All in for independent advisors and their clients
During Beatty’s opening session, he shared one of three new advertising spots currently being broadcast to support independent advisors, part of a recently announced redoubling of Schwab’s “Independent Difference” campaign. The multi-channel effort has helped drive more than one billion views1 and driven more than two million investors2 to www.FindYourIndependentAdvisor.com.
Discussing the campaign’s success from the mainstage, Clark said: “All in is how we describe who we are when it comes to you. It’s our job when it comes to the safety and security of your client assets; it is reflected in our investments in making work easier, more efficient, and more secure for you and your clients; and it also shows up in our advocacy on your behalf.”
Schwab will be announced at IMPACT as the
In a special showcase stage session,
1 Data per
2 Data per Adobe Analytics as of
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Schwab Advisor Services™ serves independent investment advisors and includes the custody, trading, and support of Schwab.
Independent investment advisors are not owned by, affiliated with, or supervised by Schwab. For informational purposes only.
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