I was thinking recently about an advisor that joined us several years ago. They left an employee environment of a hybrid firm to the RIA-only, 100% practice ownership of Dynamic Wealth Advisors. When this advisor began their transition to our firm, the primary focus was the clients (and their accounts) that chose to follow the advisor to their new business model.
During conversations prior to the actual transition, we learned that the advisor placed a focus on planning in their client relationships, and sought the move to RIA-only to better deliver on that. What we also uncovered was that due to this planning relationship, the advisor was often discussing accounts he was not managing directly for his clients. Often those were 401k accounts where clients were still working for their employer, and actively making contributions. Unfortunately, they had no way to bring in the information on the outside accounts through his former firm’s platform.
When we explained to the advisor that they could aggregate those accounts through our platform, it was clear that he understood the opportunity. Being able to aggregate the outside accounts helped the advisor’s clients, because now they could see all accounts that the advisor was overseeing for them, and the advisor was able to charge appropriately for their advisory services.
Through the addition of new clients, and aggregating outside accounts for new and existing clients, the advisor doubled the size of their practice in just under two years.
I thought again of this advisor when I ran across an article posted last week in Financial Planning magazine that shared the experience of a former Merrill Lynch executive who used to collect physical statements from his clients, and populate spreadsheets.
The former Merrill Lynch executive, and current Wealth Access CEO, John Benskin was quoted in the article as saying, “Aggregation is table stakes now. Every advisor needs to have it.”
How are you aggregating your clients’ outside accounts?
The article mentioned in this post can be found here: https://www.financial-planning.com/news/data-aggregations-roi-for-advisers