05.26.20
The Hot Wealth Tech: Humans
by: Telis Delos
Money management are finding new ways to earn money amid very low trading commissions and interest rates. Companies are finding success by spreading small earnings across large pools of customers and assets. For example, Schwab is working to acquire Ameritrade and Morgan Stanley is acquiring E*Trade. Meanwhile, smaller companies are partnering with larger asset managers. Others find that offering RIAs custody and retaining them with other financial services is an effective way to increase assets, cash, and generate scale. Industry observers also point out that RIAs are becoming more popular compared to traditional wirehouse brokers. According to Aite Group, the number of RIA firms grew by about 4 percent from 2018 to 2019.
Read the full article on Wall Street Journal.