Disintermediating Traditional Barriers for CRM in Wealth Management

Competing for the CRM tech stack of larger RIAs (e.g., $1 billion-plus in assets under management) is the territory of Salesforce, supported by an entrenched ecosystem of technology consultants. It is not easy for turnkey CRM providers to penetrate that segment given the level of CRM customization and complexity required. Below the $1 billion AUM threshold, registered investment advisors are more likely to choose a turnkey CRM solution from the likes of Capitect, Wealthbox, Redtail, and Practifi, and from platform providers such as InvestCloud with its “Open CRM” application.

However, the RIA market is limited in size, especially below $1 billion AUM, and only growing in the mid single digits annually. To expand market share, CRM providers will need to solve for the deployment complexity and cost associated with larger-enterprise broker dealer (BD) and RIA models. One path forward is the use of low-code and no-code solution deployment. Leaders include Unqork and Creatio.

Key questions discussed in this report:

• How is the CRM market for RIAs segmented?
• What technologies will incrementally boost the CRM value proposition?
• What are the barriers to entry into the RIA enterprise CRM market?
• How do CRM providers expand their market share?

Companies Mentioned:

Addepar, Appian, BehaviorQuant, BlackRock, CircleBlack, Creatio, Crescent Grove Advisors, Cresset, Envestnet, Fidelity Investments, Financial DNA, Goldman Sachs, InvestorCOM, Microsoft, Moxtra, Nice Actimize, Orion Advisor Solutions, Oxford Financial Group, Practifi, Prudential Financial, Redtail, Salesforce,  SS&C Advent, Skience, Tableau, Tiedemann Advisors, Unqork, Vestorly, VISE, Wealth Access, Wealthbox, Morgan Stanley