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McKinsey & Co. weighs in on the future of RIAs -- where it has 'zero business' -- and comes up with the same boilerplate prediction about the demise of mom-and-pop shops

The $10-billion revenue colossus pooh-poos $7 trillion of 'mom-and-pop' RIA assets after they take in 22% of all investable assets last year, from 16% base, according to McKinsey's own numbers.

Author Oisin Breen June 7, 2023 at 1:36 AM
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Chip Roame: Within the RIA community, the large RIAs are taking marketshare … large RIAs will dominate.
Brooke Southall and Keith Girard contributed to the editing of this article.



Cerulli Associates

Brian Murphy

Brian Murphy

June 13, 2023 — 4:54 AM
McKinsey reports have been viewed as must-reads for going on 20 years now (if not longer), yet they've never been insightful wrt where the industry is actually going. If the best they can do is note that the industry should consolidate, then I agree, they should stop publishing their views. That said, the fact that the industry HAS NOT consolidated much in the past 20 years suggests the catalyst for change hasn't arisen yet...so why not? Perhaps McKinsey should examine that angle and begin to delve into what those catalysts could be. There's a lot to explore there...What would make the industry begin to consolidate? I have my ideas. Hint - it won't come from the institutional players; it'll come out of left field and hit the industry square in the face taking both big and small players out simultaneously. It'll come with a new business model and delivery options and leverage technology in a far more customized way than available today. It will integrate across financial verticals and won't have to be sold; it will be sought out.

Related Moves

May 30, 2024 at 1:35 AM

Plague of failed hires at strapped RIA firms 'come back to bite them,' making the process of closing bandwidth deficits falter, two new studies show

Turnover rates hover near 50%, Cerulli and Ensemble report, and may be worsening as hires in market of talent scarcity has inevitable backlash.

February 28, 2024 at 3:36 AM

The classic RIA era is sputtering and firms must 'decentralize,' hiring non-advisors to specialize, new Cerulli report shows, or RIAs will 'limp along,' a second consultant says

RIA principals have killed Wall Street with semi-solo shops -- only 35% have 'specialized staff' -- but the comfort zone must evolve for growth

January 13, 2024 at 2:24 AM

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