5 Growth Strategies for Independent RIAs

Recruiting a diverse team also promotes innovation and adaptability. A workforce that combines traditional expertise with modern perspectives is better equipped to deal with industry changes. Companies should also consider implementing mentoring programs that pair experienced consultants with newer team members. This collaboration can facilitate knowledge transfer, increase trust and create a culture of continuous learning.

3. Leverage configurable technologies and integrations.

Unlike the wirehouse model, independence allows for the adoption of agile technology, which advisors should prioritize. This flexibility allows RIAs to quickly integrate solutions, increasing efficiency and scalability. A recent Fidelity survey shows that companies that adopt technology-related best practices report above-average efficiency, stronger growth, better customer experiences and higher advisor satisfaction.

According to the survey, technology-focused companies experienced a 20% customer growth rate compared to 8% for others and doubled the average growth rate of assets under management (22% vs. 11%). Additionally, consultants from “digitally enabled” companies reported higher career satisfaction (81% vs. 59%), higher company satisfaction (64% vs. 44%), and higher average compensation ($489,000 vs. $373,000).

4. Build strategic partnerships.

Building strategic partnerships can improve service offerings and remove barriers to growth. By working with specialists such as accountants, probate attorneys and other professionals, RIAs can offer a more comprehensive range of services.

Customers are increasingly seeking a “family office” experience where all of their financial needs are managed under one roof. However, not every consulting company has the internal expertise to meet these diverse requirements. This is where strategic partnerships come into play.

By building a robust network of specialists, RIAs can provide their clients with access to tax planning, legal advice, estate planning and more – while ensuring they receive top-notch service.

Collaborating with experts from different fields also fosters a referral network that can lead to new customer opportunities. For example, a CPA may refer clients to an RIA for investment management, while the RIA may refer clients to the CPA for tax-related matters. This mutual relationship strengthens both companies and increases overall value for customers.

5. Remember: Agility is your superpower.

Independence often goes hand in hand with entrepreneurial spirit. This freedom allows advisors to make quick decisions that benefit clients and quickly adapt to market changes. Advisors should leverage this agility in time-sensitive environments, as competitors with different models may struggle to keep up.

By adopting these strategies, independent advisors can expand their practice while providing clients with exceptional value that remains at the heart of the wealth management universe.

Robert B. Tamarkin is a founding partner and director of business development at Elevation Point, a firm that provides the resources and collaborative culture to help advisors build and grow their own businesses.