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What is the current state of the Registered Investment Advisors (RIA) industry and the trends shaping this sector? Recent RIA industry statistics show the effects of technology on businesses and consumers, including challenges, opportunities, and the future of the RIA industry. Financial advisor marketing solutions and results are sure to be impacted. Here is a summary of the key points discussed in the blog “RIA Industry 2023: A Look at the Statistics.“
The Rapid Growth of Registered Investment Advisors (RIAs)
According to recent statistics, there has been a surge in RIAs. In fact, the number of SEC-registered investment advisors in the USA steadily increased, surpassing pre-2011 levels, reaching 14,806 in 2021.
This is happening because there is a rising demand for investment advisors and professional financial guidance. Financial markets are complex, requiring information and knowledge to navigate. As more people retire, live longer, and transfer wealth, and economic uncertainty creates concern, the demand for RIAs grows.
The Current RIA Metrics
Registered investment advisors’ assets under management grew to $128 trillion in 2021, indicating strong industry growth. Most Registered Investment Advisor firms manage assets between $100 million and $1 billion, according to a breakdown by assets under management. CAPTRUST emerged as the leading RIA in the US, managing $655 billion in assets in 2021.
From 2017-2021, most clients of SEC-registered investment advisors were not wealthy, highlighting the need to focus on this group. High-net-worth clients contribute significantly to the assets managed by investment advisors. Transparency regarding costs and fees emerged as the most critical factor in building trust between investors and financial advisors. Retail investors may consider leaving their advisors or asset managers due to underperformance.
Additional RPA Industry Insights
The global Robotic Process Automation (RPA) market is experiencing rapid growth, with North America leading in market share. The RPA service segment fuels industry growth and experts anticipate it will reach $10.23 billion by 2028.
What’s driving this growth? Automation is having a significant impact on various industries, particularly the car industry. Experts predict that small and medium-sized businesses will adopt RPA at a faster rate.
A large percentage of businesses plan to increase their investment in RPA in the coming years. Combining RPA and Digital Process Automation (DPA) solutions can lead to substantial cost savings.
In summary, the Registered Investment Advisor industry is experiencing steady growth in 2023. The assets under management is increasing, and firms are very diverse in size and scale.
The blog post highlights the substantial growth and potential within the RIA and RPA industries. It emphasizes the importance of transparency, performance, and adapting to emerging technologies for financial advisors and businesses across various sectors. The RIA industry statistics & trends presented offer valuable insights into these dynamic industries. To read the blog in full, visit Gitnux Market Data.