Banks Have Difficulty Retaining Advisors, Cerulli Finds
by: Eric Rasmussen
The bank broker-dealer (B-D) channel has seen stagnating growth in advisors head count, according to new research from Cerulli Associates. While the independent registered investment advisor (RIA) channel saw a 4.4% in compound annual growth rate in advisor head count from 2016 to 2021, and the hybrid RIA space saw 2% growth, the retail bank B-D channel saw only 0.7% growth, while seeing its assets under management (AUM) log an 11.7% compound annual growth. “Shifting market dynamics and competing advisory business models are putting significant pressure on banks’ and credit unions’ ability to attract and retain advisors,” said Chayce Horton, research analyst. “Banks need to be able to compete with other advisory channels, such as the RIA channel, which has outpaced the broader wealth management industry in terms of AUM and advisor head count growth.” Cerulli produced the paper with BISA.
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