How RIAs can use tech to attract top talent
Key Points
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Advisors and RIA staff want to be at tech-forward firms because technology can help them be more successful in their roles.
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Many technology tools make it simpler for clients, and help advisors win new clients more easily.
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Paper-intensive processes slow teams down and add frustration to an advisor’s day.
Tech-forward Registered Investment Advisor (RIA) firms have a big advantage in our highly mobile, very online world. Today, many clients expect their advisor to jump on a video call or share documents digitally. And RIA staff need the flexibility to access tools and files at home or on the road.
At a time when hiring and retaining RIA talent is challenging, firms with outdated or cumbersome technology risk losing top performers who are frustrated with the firm's tools. Why? The right technology can help advisors deliver what their clients want, streamline processes so that they can spend more time with clients, and provide insights to win new clients. Firms with outdated tools risk losing on all three fronts. See how, when it comes to talent, technology is a difference-maker.
Good tech helps advisors please their clients
Clients want working with their advisor to be easy while still feeling that they're getting the attention they deserve. This might mean they prefer to click into a video call rather than driving to your office for a meeting. Video conferencing also allows you schedule short but more frequent meetings, allowing you to stay in touch, make adjustments, and answer questions without spending a lot more time.
Many clients also like the convenience of opening accounts, signing documents, checking their accounts, and moving money digitally. By using online technology to bring information and tools directly to your clients, they often feel more empowered in the planning process.
And if you use your CRM system to keep track of client preferences and needs, you can create opportunities to delight your clients in small or surprising ways.
No one wants to chase paper
How many people like their work, but dislike all the hoops they must jump through and the frustrating slowdowns that prevent them from being their best?
Inefficient technology can be hard on your team. Chasing down paperwork, reentering data, fixing typos, troubleshooting malfunctions—these speed bumps can wear a person down.
Malfunctioning technology can also hurt asset and client growth. Schwab's 2024 RIA Benchmarking Study found that Top Performing Firms—who more often use digital tools and workflows—spent around 25% less time annually per client on operations1. Advisors who spend their days laboring through tasks are doubly frustrated because each unproductive hour is time away from work that can nurture relationships and win new clients.
Firms with powerful technology and intelligent workflows make administrative tasks simpler and are better able to keep processes moving. The ability to remove the friction that frustrates most people is attractive to advisors who are motivated to build up their practice.
A data-driven approach can win more clients
Top advisors know that you can't limit your business development to a small network of people. You need to find ways to market to folks who would never find you in the usual places and then nurture those leads with a mix of personal connections and data-driven approaches.
RIA firms that effectively use their CRM system to target their marketing to ideal clients and to stay in touch with prospects, increase their chances of finding and winning new clients. As a result, more firms are prioritizing this data-driven approach.
According to Schwab's 2024 RIA Benchmarking Study, a large number of firms are using digital channels to find new clients and more than 70% of firms that used online advertising, webcasts, webinars, or podcasts generated leads from those channels2.
Compete for talent from every angle
Businesses in every industry are struggling to hire good people because, while compensation is still a priority, other factors matter more than they used to. Today, technology is one of those factors. Firms that invest in technology to improve the client experience, speed up workflows, and win new clients have a better chance at wooing advisors on the move—and keeping talent under their roof.
What you can do next
- Level up how your firm works with Schwab's account management and trading.
- Explore our Talent Resource Center to find ways to develop and motivate your talent—from compensation to professional development.
- Consider a custodian that is invested in your success. Contact us to learn more about the potential benefits of a Schwab custodial relationship.
1. Results from the 2020 and 2024 RIA Benchmarking Study from Charles Schwab. Median results for all firms with $250 million or more in AUM.
2. Based on firms with $250 million or more in AUM that track leads and indicated generating one or more lead from tactic.
About the 2024 RIA Benchmarking Study
Schwab designed the RIA Benchmarking Study to capture insights in the RIA industry based on survey responses from individual firms. The 2024 study provides information on topics such as asset and revenue growth, sources of new clients, products and pricing, staffing, compensation, marketing, technology, and financial performance. Since the inception of the study in 2006, more than 4,800 firms have participated, with many repeat participants. Fielded from January to March 2024, the study contains self-reported data from 1,304 firms that custody their assets with Schwab and represents $2 trillion in assets under management, making this the leading study in the RIA industry. Schwab did not independently verify or validate the self-reported information. Participant firms represent various sizes and business models. They are categorized into peer groups by AUM size. The study is part of Schwab Business Consulting and Education, a practice management offering for RIAs. Grounded in the best practices of leading independent advisory firms, Business Consulting and Education provides insight, guidance, tools, and resources to help RIAs strategically manage and grow their firms.
Past performance is not an indicator of future results.
For general informational and educational purposes only.