Uncovering the Secret to Sustainable Growth

Tremendous growth in the RIA space may have some advisors wondering how their firms will be able to keep pace given post-COVID challenges in the labor market.

In its 2022 RIA Benchmarking Study, Charles Schwab reports that at the median, since 2021:

  • AUM increased 20 percent.
  • The number of clients was up 6 percent. 

For all firms with over $25 million or more in AUM, the five-year AUM CAGR is 14 percent. For number of clients, the five-year CAGR is five percent. Contrast this robust growth with an anemic labor market where many RIAs state that finding talent is very challenging.

Using a projected CAGR of AUM, Schwab expects that in five years, the median firm will have 14 employees, working with 383 clients, managing $791 million in total assets, and generating revenue of $3.8 million.

How can you drive sustainable growth without necessarily hiring more staff? By outsourcing non-differentiating activities, like operations, so advisors can focus on their core capability—working with clients.

According to Schwab, top performing firms use standardized processes and digital workflows more often than their peers. They spend nearly 20 percent less time annually per client on operations and administration than the median firm, those with $250 million or more in AUM. 

With support from a team of experienced consultants, you can run your firm with wealth management technology to: 

  • Automate workflows
  • Increase productivity
  • Standardize operations.

By releasing advisors from time-consuming, non-differentiating activities, you can improve their job satisfaction as they are free to offer more clients more engaging experiences.

Driving sustainable growth with expertise from strategic partners

With help from LibertyFi consultants, you can configure your wealth management platform to create automated workflows that promote consistent and repeatable experiences for both advisors and clients. We collaborate with our strategic partners to deliver a seamless conversion process that includes:

  • Custodian integration
  • Investment mapping
  • Transition of client accounts
  • Wealth platform training in the Client Portal, model management, reports, and more
  • Platform configuration to meet your firm’s specific needs
  • Ongoing support to build advisor familiarity and confidence in use of the platform

Our network of strategic partners

Beyond gaining support for your tech operations, you can also benefit from our strong relationships with trusted strategic partners. These partners focus on the non-differentiating areas of your practice so you can concentrate on helping clients. Our partners include:

  • Custodian – Consultants from The RIA Works generate the custodial paperwork you need to establish accounts and transition clients. The RIA Works send you packages that you can forward to clients or review with them in person.
  • Investment management – OCIO experts from WealthShield can provide your clients with personalized investment strategies at scale.
  • Compliance experts from AdvisorAssist can review business processes to ensure they promote regulatory compliance. These partners can also help with an SEC audit.
  • Business experts from Wealth Advisor Growth Network (WAGN) have over 45 years combined experience building and running RIAs.
  • Advisor services including tools, operational solutions, and investment support services from ORG Partners.
  • Insurance services from AIK2 to cost-effectively ensure and protect your most valuable asset, your firm.

Download our network of strategic partners here.

Integrated wealth management software supported by technology consultants can help you cost-effectively scale your firm. Start achieving your business goals by providing advisors and clients with more consistent, streamlined experiences. With our expertise running RIAs with technology, we can help.

For help driving growth, contact Alli Jordan.


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