By: Phill Rogerson

Envestnet’s third RIA Forum on October 6, 2022, tackled a primary theme we see evolving in the wealth management space: advisors expanding their service models. Hundreds of Registered Investment Advisors (RIAs) from around the country participated in our virtual event, joining our panel of experts to discuss ways to provide a broader array of services to better meet clients’ needs.

How are you thinking about evolving the service set you have today in the context of your client base and future demographics? Are you planning to go beyond capabilities formerly seen as table stakes, such as asset allocation and retirement planning – and expand into other areas, such as insurance, credit, cash management, trust, and estate planning services? At Envestnet, our RIA research finds that the broader the array of services offered, the bigger the wallet share advisors tend to have with their client base.

The latest industry trends: What’s happening in the RIA marketplace

Our Forum started by reviewing Cerulli’s latest RIA research1 and the four drivers of potential service expansion. From business model convergence to investor influence, the democratization of access, and wealth transfer, the RIA channel faces a differentiation dilution. The research shows RIAs are adding new services to retain existing clients, acquire new clients, and expand and move upmarket to serve high-net-worth or ultra-high-net-worth families or establish a niche in a new client segment.

Key findings from Cerulli:

  • Competitiveness in the marketplace drives advisors to look hard at the breadth of services they offer.
  • Clients are more sensitive about fees and demand more value for the fees they pay.
  • There is a democratization of access and clients have more places to get advice than ever before.
  • Over the next 20 years, over $73 trillion will move from one generation to the next, the single most significant opportunity to grow your practice.

Opportunity Spotlight: Credit, Protection and Income

Based on these industry trends, we turned to two ways to expand your service set with a trusted third-party partner like Envestnet to help you outsource some elements. Our discussion ranged from the opportunities our experts see for RIAs to expand their service model and solutions to meet clients’ needs.

Our featured panelists:

  • Peter Stanton, CEO and Founder of Advisor Credit Exchange (ACx)
  • James Caparosa, SVP, Head of National Accounts for Fiduciary Exchange LLC (FIDx)

Here’s a recap of the key takeaways from each panelist.

The Envestnet Credit Exchange powered by ACs: Managing credit as strategically as investments

Stanton focused on providing advice-driven financing solutions banking and lending programs to advisors and how the Exchange makes it so much easier. When thinking about offering this type of solution to clients, it’s not necessarily new, but within the last several years, he has seen a shift toward expand or expire messaging. If you are not the advisor there for your clients when a credit need arises, you risk not being the primary provider and possibly losing the relationship.

More and more advisors are looking to offer lending solutions, and they tend to find the greatest success in their ability to offer multiple capabilities to meet any need a client may have – from securities-backed loans (SBL) to real estate-based loans and personal unsecured loans, as examples.

When it comes to lending solutions, Stanton covered four critical points on the value of the Advisor Credit Exchange:

  • Takes the guesswork out of the equation because the Exchange meets with lenders, manages a client book review for you in advance, and essentially helps offer ore-selected loan offers through its deep underwriting capabilities.
  • Delivers all the loan rates, terms, and lending structures you need before you talk to your client.
  • Takes the mystery out of credit. With the Exchange, you can confidently say to your client: If you ever need to borrow, talk to me; I can offer multiple solutions.
  • Busts the myth that clients with wealth don’t need to borrow. Maintaining a long-term plan is most important when considering a client’s financial plan and asset management. Time and time again, it has been shown that leveraging assets, not liquidating them, is the preferred strategy.

To learn more, join us for our upcoming and exclusive webinar to introduce the Envestnet Credit Exchange for Tamarac Users. We’ll discuss advice-advice driven financing solutions to help your clients manage both side of the balance sheet. Register here!

Fiduciary Exchange LLC (FIDx): Easily Integrating Insurance and Annuities

Caparosa focused on how FIDx helps advisors integrate protected retirement income solutions insurance into their practice – and leverage it as a tool to drive deeper connections, help protect assets, and can help support retirement outcomes.

He sees clients driving today’s most significant shift in the advisor service model. Clients are not only coming to you for investment advice; they are looking for you to be the CFO of the family balance sheet. To do so, you need a holistic view of all their asset to identify and help eliminate any potential gaps within their retirement plan.

Caparosa covered four ways FIDx is making it easier for advisors to engage in insurance-based products:

  • Thanks to enhanced product design, annuities are less complicated and can fit into the practice of a fee-based advisor. FIDx removes the barriers to entry and the difficulties in understanding and purchasing annuities.
  • Direct tech integration with your desktop is now available, making for a seamless experience.
  • Annuities are now a part of a client’s consolidated statement. When placed alongside a wealth management allocation, you don’t constantly need to resell why the annuity is there in the first place.
  • If you are unlicensed, you can work with one of our eight Outsourced Insurance Desk (OIDs) partners who can help facilitate the delivering of the annuity contract to the client while allowing you to bill on the annuity and provide oversight.

Check out our new digital resource center that provides an overview of the Envestnet Insurance Exchange including intuitive demos that provide a walk-through for submitting your first ticket, Carrier and Outsourced Insurance Desk (OID) educational resources and access to one-to-one support through Envestnet’s Wealth Solutions Desk. Access here!

Success Stories: How Service Expansion Works for Top RIAs

The conversation then shifted to success stories from advisors who have expanded their service model. Stanton said that instead of waiting for clients to ask you about credit capabilities, the most successful RIAs flip the model and suggest a client set up an SBL loan, so it’s available when needed.

The Exchange identifies potential lending opportunities gathered based on each client’s financial data and works with a list of lending partners curated for their product offering, service quality, and financing experience. Stanton recommended working with three to four lenders curated for you in each category. That way, you are competitive with the best rates, plus your offering provides choices.

Caparosa has seen the most success when RIAs identify two or three insurance providers who align best with their business model and can work with them as an extension of their teams. When RIAs approach clients near or in retirement and offer to do an income review, many insurance products can help.

Learn More

At Envestnet, we are Fully VestedTM in helping you address the key challenges you face as you evolve and grow your business. Our Wealth Solutions team is here to help you learn more and explore how you can take advantage of the opportunity to add credit, insurance, and protection to meet your clients’ needs and grow your business. To learn more about how you can get started, connect with us at

And if you missed our latest RIA Forum, “Simple Ways to Expand Your Service Model,”you can watch the replay here. Stay tuned for our next event, where we’ll share more ideas focused on your clients’ expanding needs and our vision for the future.

1Source: The Cerulli Report, US RIA Marketplace 2021

Advisor Credit Exchange, LLC (“ACx”) provides access to lending solutions for advisors’ clients via the Envestnet Platform through Envestnet Asset Management’s affiliate, Envestnet Financial Technologies.   Envestnet, Inc. has a financial interest and occupies board of director positions in ACx.  Neither ACx nor Envestnet offers any loan products or makes any lending decisions.  The funding and administration of all loans is undertaken by separate and unaffiliated financial institutions.  This presentation should not be construed as a recommendation or endorsement of any particular product, service, bank or firm. 

Neither Envestnet, nor Fiduciary Exchange, LLC are licensed insurance agencies and as such, do not sell or make any recommendations related to the purchase of the annuity or insurance products referred to in this presentation. Insurance products are only sold or recommended by insurance licensed financial professionals or through a third-party intermediary licensed as an insurance agency. Please refer to your insurance agreement or contact your financial professional, insurance agent or insurance company for more information. Envestnet, Inc. has a financial interest and occupies board of director positions in Fiduciary Exchange LLC (FIDx).

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