The landscape of registered investment advisor (RIA) growth is undergoing a significant evolution, moving beyond traditional metrics like assets under management (AUM) and advisement. According to Schwab Advisor Services’ latest annual RIA survey, a substantial portion of firms—over 40%—are now prioritizing new client acquisition, client referrals, and the expansion of wallet share as key indicators of success. This strategic recalibration reflects a growing awareness within the industry that a sole reliance on AUM may not fully capture the multifaceted health and future potential of an advisory business.
The comprehensive survey, which polled 1,235 RIAs, found that while AUM remains the dominant growth metric for a significant majority (75% of advisors), a substantial 53% are actively tracking the number of new clients they onboard. Furthermore, client referrals have emerged as a critical focus, with 44% of RIAs monitoring this channel, and 40% are now examining changes in AUM per client or household. This marks a notable increase from the previous year, 2025, when Schwab’s findings indicated that only 40% tracked new clients, 27% monitored AUM per client household, and a mere 15% prioritized the number of new client referrals.
Jalina Kerr, head of advisor experience at Schwab Advisor Services, observed a discernible trend of RIAs actively seeking solutions to foster organic growth. This demand stems from a recognition that firm valuations tied predominantly to AUM might not offer the same robust returns as in previous market cycles. "We’re hearing more organically from advisors that organic growth has been more challenging for them," Kerr stated. "They’re redoubling their efforts for referral sources, centers of influence, and I think they are recognizing they need to work on that."
This shift in focus is underscored by the survey’s findings regarding future growth expectations. A significant 70% of advisors anticipate that referrals will be the primary driver of growth over the next three years, closely followed by client service, cited by 60% of respondents. This emphasis on client relationships and proactive engagement suggests a maturing industry that understands the intrinsic value of cultivating a strong, loyal client base.
"If we can’t figure out a way to expand the base of advisors and clients that they’re serving, what happens to the industry because it needs to kind of keep fueling and feeding itself," Kerr elaborated. "I think advisors are more focused on that than I’ve seen them in a long time, which we’re happy about because we can discuss with them how they are looking to grow."
Emerging Growth Avenues and Strategic Investments
The Schwab survey also shed light on specific areas where RIAs are finding new avenues for client acquisition. Kerr highlighted the increasing importance of employee stock programs within private companies that are nearing liquidity events, such as going public or preparing for such a transition. These events create a fertile ground for advisors to attract new clients who are navigating significant financial changes and require expert guidance. "That’s a great way for advisors to source some organic growth, and that’s been really fruitful for them in the markets from what we’ve been seeing," she commented.
To support these evolving growth strategies, RIAs are making targeted investments in their operational capabilities. The survey revealed that 40% of firms are investing in sales and marketing initiatives, placing it as the second-highest spending priority after AI integration for workflow optimization, which garnered 49% of investment. Following closely behind, 32% of RIAs are allocating resources to technology stack upgrades, with 30% investing in new tools and platforms, and 22% focusing on professional development programs. This distribution of investment indicates a dual focus on enhancing client acquisition efforts and leveraging technology to improve efficiency and client experience.
Expanding Service Offerings and the Rise of Alternative Investments
Beyond client acquisition, RIAs are also demonstrating a proactive approach to expanding their service portfolios to meet the increasingly sophisticated needs of their clients. There is a growing trend among RIAs to offer investment options that were traditionally the preserve of ultra-high-net-worth individuals, including alternative investments, access to private markets, and pledged asset lines.
"Clients’ needs and expectations are changing, and advisors are expanding what they offer—alternatives, private markets, tax-smart strategies," Kerr explained. This expansion is crucial for RIAs seeking to differentiate themselves and provide comprehensive financial solutions that cater to a broader spectrum of client wealth and investment objectives.
The survey data provides concrete evidence of this trend. Among firms offering alternative investments, real estate (72%) and private equity (71%) emerge as the most popular choices. Approximately 50% of advisors are also offering pledged asset lines, a sophisticated lending product that allows clients to leverage their investment portfolios. Furthermore, a significant 37% of RIAs currently provide access to private market investments, with an additional 13% planning to introduce these offerings within the next three years. This indicates a strong and growing appetite for illiquid and alternative asset classes, reflecting a desire to diversify portfolios and potentially achieve higher returns.
The Transformative Impact of Artificial Intelligence
Artificial intelligence (AI) is rapidly emerging as a transformative force within the RIA industry, impacting both operational efficiency and client engagement. While the adoption of agentic AI, which involves AI agents acting autonomously, is still in its nascent stages with only 7% of surveyed advisors reporting its use, the future outlook is considerably different. A substantial majority (66%) of RIAs plan to integrate AI into their client experience strategies in the coming years. This suggests a significant wave of AI adoption is on the horizon, poised to reshape how advisors interact with and serve their clients.
The strategic allocation of resources towards AI integration, as highlighted by the 49% of RIAs investing in this area, underscores its perceived importance. This investment is not merely about technological advancement but about enhancing client satisfaction, streamlining communication, and providing more personalized and data-driven advice. The potential applications of AI range from automated client onboarding and personalized financial planning to sophisticated risk management and predictive analytics.
The Enduring Strength of the Fiduciary Model
Amidst the rapid technological advancements and evolving business strategies, the fiduciary model continues to be a cornerstone of the RIA industry, reinforcing client trust and ethical practice. Jon Beatty, head of Schwab Advisor Services, emphasized the enduring value of this client-centric approach. The survey results strongly support this assertion, with 90% of advisors agreeing that the fiduciary standard is instrumental in ensuring clients’ best interests are always prioritized. An additional 86% believe it helps prevent the imposition of unwanted products on clients, and a significant 79% find that it is crucial for establishing and maintaining client trust.
"Whether it’s adopting new technology, investing in AI or expanding new investment capabilities, the fiduciary model guides how RIAs adapt, grow, and succeed," Beatty remarked. This sentiment suggests that while the tools and strategies may evolve, the fundamental commitment to acting in the client’s best interest remains the guiding principle for success and long-term sustainability in the RIA sector. The fiduciary standard provides a robust ethical framework that underpins the industry’s ability to navigate complex market conditions and evolving client expectations.
Contextualizing the Schwab Independent Advisor Outlook Study
The Schwab Independent Advisor Outlook Study, now in its latest iteration, has consistently provided valuable insights into the operational strategies and future outlook of RIAs. This annual survey serves as a critical barometer for understanding the trends and challenges facing independent advisors. The 2026 findings, in particular, reveal a dynamic industry responding to both market pressures and evolving client demands.
The study’s methodology, which involves surveying a broad base of independent advisors who custody assets with Schwab, ensures a representative sample of the industry. The current survey included 1,235 independent advisors, collectively managing $497 billion in assets under management. This substantial data pool allows for robust analysis and the identification of significant industry shifts.
The evolution in growth metrics—from a near-exclusive focus on AUM to a more balanced approach incorporating client acquisition and retention—can be understood within the broader context of the financial services industry. Historically, AUM has been a straightforward and easily quantifiable measure of an advisor’s success. However, as the industry matures and competition intensifies, advisors are realizing that sustainable growth requires a deeper engagement with clients and a more diversified approach to business development.
The increased emphasis on referrals, for instance, speaks to the power of word-of-mouth marketing and the trust that existing clients place in their advisors. In an era of information overload and complex financial landscapes, personal recommendations carry significant weight. By actively cultivating referral networks and fostering strong client relationships, RIAs are building a more resilient and organic growth engine.
The expansion of service offerings, particularly into alternative investments and private markets, reflects a strategic response to client demand for diversification and potentially higher returns. As more investors gain access to these asset classes, RIAs are compelled to develop the expertise and infrastructure to offer them. This move also positions RIAs as more comprehensive financial partners, capable of addressing a wider range of client needs.
The growing interest in AI, while still in its early stages of adoption for autonomous tasks, signifies a forward-looking perspective. RIAs recognize the potential of AI to enhance operational efficiency, personalize client interactions, and provide more sophisticated analytical insights. The planned integration of AI into client experience strategies suggests a future where technology plays an even more integral role in the advisor-client relationship.
Finally, the continued reaffirmation of the fiduciary model as a bedrock principle highlights the industry’s commitment to ethical conduct and client-centricity. In a world where trust is paramount, the fiduciary standard serves as a crucial differentiator for RIAs, reinforcing their position as trusted advisors. This commitment to acting in the client’s best interest is not only a regulatory requirement but a fundamental aspect of building long-term client loyalty and a strong industry reputation.
The findings from Schwab’s latest survey paint a picture of a dynamic and adaptive RIA industry. By broadening their growth metrics, investing in strategic areas, expanding service offerings, embracing new technologies, and staying true to their fiduciary commitments, RIAs are positioning themselves for continued success in an ever-evolving financial marketplace. The focus on client acquisition, retention, and a holistic client experience is clearly shaping the future trajectory of the independent advisor space.
