06.06.25

AI Widens Tech Divide Between RIAs and Banks

by: Andrew Cohen

AI adaptation in financial services is being led by registered investment advisors (RIAs), according to a report based on a survey by wealth technology consultancy F2 Strategy. Of the three-quarters of wealth management respondents that currently use AI, about 80% identified as RIAs or hybrid RIAs. RIAs were four times more likely to use AI than banks and trust companies. Smaller RIAs were found to be more likely to access AI through vendor relationships, while larger institutions more often build their own in-house capabilities. “There are clear benefits of AI use in the industry to streamline operations and allow advisors more time to build stronger client relationships,” said Doug Fritz, F2 Strategy co-founder and executive chair. “While RIAs have embraced the disruptive technology, we’re concerned that the bank trust sector will fall even further behind in its ability to compete for client relationships.”

Read the full article on InvestmentNews