How Altruist Is Changing the RIA Landscape
How Altruist Is Changing the RIA Landscape The race to zero commissions started in 2019 and has led to an uptick in mergers and consolidations in the financial services industry. This has left many RIAs and financial professionals in uncertainty.
Several of the largest custodians have started raising their prices to make up for the loss of commission revenue. This has caused many advisors to consider reducing their services or even raising their fees.
Even with all the changes in the financial planning industry, many advisors still face challenges. According to Jason Wenk, the CEO of Altruist, a new custodian model could help them overcome some of these issues.
A streamlined approach could help advisors save money and offer them a way to scale their practice. According to Wenk, many advisors are complaining about the complexity of managing their infrastructure.
The Altruist Mission
Altruist was founded in 2018 in Los Angeles and is focused on helping financial planners make financial planning more accessible. Its mission is to provide a better way for advisors to manage their infrastructure.
The company started out with a funding in 2018. It has continued to grow significantly since then, and its all-in-one platform has the potential to significantly reduce the cost of running a financial planning practice.
The main reason why firms are forced to raise prices is because the vendor makes money on a percentage basis point, which means the advisor doesn’t have a choice but to pass on all of that to their clients.
Altruist’s digital brokerage is built on a fully-integrated platform that enables advisors to manage all of their client’s assets in one place. Its affordability is also attractive to many advisors.
The Bottom Line
While addressing the concerns of RIAs is a challenging task, Wenk says that finding ways to work through these issues can be rewarding. According to him, being able to create a startup that can provide the same tools and resources as established firms is a reward.
As the company continues to expand its platform and reach more clients, it aims to provide even more tools to help advisors scale their practice. For now, it has partnered with thousands of investopedia traders to give users the opportunity to test their trading skills.
