The wealth management industry has experienced a monumental shift over the last decade with the introduction of a fee-based model and the Registered Investment Advisor (RIA) industry, gaining increasing popularity. Technology advancement and easy access to financial products and services have created a shift in expectations. Clients are becoming more sophisticated, and needs are getting more complex, resulting in the need for higher personalization and customization.
Advisors are trying to adapt to this evolving mindset. They have welcomed the independent model, which allows them the flexibility to show their entrepreneurial spirit and use their creativity to offer tailored products and services to cater to their client needs. This flexibility and creativity, however, are only possible through building a network of strategic partnerships with platform providers and third-party vendors that allow the advisor to create this unique value proposition for their targeted clientele.
The world of services for RIAs has proliferated – whether it’s a custodian simply holding assets or a third-party vendor providing financial planning technology – these providers offer basic and advanced support for almost every aspect of the RIA business. All these providers together constitute the ‘RIA ecosystem,’ providing RIAs the opportunity to make that choice based on need and requirements and where each partner plays a crucial and distinctive role in supporting the advisor and helping to grow their business.