Page 43 - Investment Advisor December 2022/January 2023

Conclusions

RIA LESSONS & LEADERS
By Jeff Berman

Why the RIA Model Will ‘Keep on Winning’

RIAs are well positioned to capture assets and attract young talent, said Charles
Schwab executives Walt Bettinger and Bernie Clark during Impact 2022.

“The future is around planning. And I
know we both believe in this. And all of
you believe the future is around advice:
Helping people with their lives, some-
times financial, sometimes personal,
quite honestly.”
Meanwhile, there continues to be a
“large growing pool of investors,” Clark
said. We talk about $37 trillion in wealth
management that’s not [being seen]
between any of us, including our retail
business,” he noted.
Advisors, meanwhile, account for
only “about 25% of the $8 trillion in the
advice space,” and there is an “oppor-
tunity that really exists for us to grow
into those spaces and to move for-
ward in a way that helps clients,” Clark
explained. But “they want it in a less
traditional [way]. I think they want it
harles Schwab executives pro- ruptive, you’re able to make greater in a way that’s going to mean more to
vided an optimistic forecast for investments in the areas that are most them,” he added.
Cthe company, financial plan- important to your clients,” he explained, Citing the $37 trillion figure men-
ning services and the RIA business referring to Schwab as one of those low- tioned by Clark, Bettinger told attendees
model at Schwab Impact 2022, held cost providers. that is a “remarkable number” that rep-
“And, of course, scale along with great
resents “just a huge opportunity; a big
Nov. 1–3 in Denver. “The winning com-
Photo courtesy of Charles Schwab viders and the firms that don’t require also, he said, adding: “What we want to ner and serve these individuals across
opportunity for us collectively to part-
technology gives us that opportunity”
panies of the future are low-cost pro-
[any] trade-off” in their services, Walt
make sure we don’t do is ever have that
our country.”
Bettinger went on to predict: “The
Bettinger, CEO of Charles Schwab, pre-
be a link to a trade-off in service, and I’m
RIA model’s going to keep winning. We
dicted during a session on the first day
pretty confident we’re able to deliver
both on your behalf.”
of the conference.
have no doubt of that and we’re happy
to be part of that. I think that RIAs are
That is “because, if you are the low-
Agreeing with him, Bernie Clark,
also really well positioned to attract
cost provider, you are able to be more
managing director, head of Advisor
innovative, you’re able to be more dis-
Services at Charles Schwab, predicted:
young talent and retain talent” once
DECEMBER 2022/JANUARY 2023 INVESTMENT ADVISOR 41