Registered investment advisers (RIAs) are holding strong on client relationships and rapidly expanding their operations, according to Charles Schwab's 2025 RIA Benchmarking Study. InvestmentNews reports that Schwab surveyed nearly 1,300 independent advisory firms representing a combined $2.4 trillion in assets under management.
Schwab's study confirms that RIAs have maintained an impressive 97 percent client retention rate every year since 2014. The study also highlighted strong asset growth from existing clients. In 2024, top-performing firms saw a dramatic increase, with assets from current clients jumping to $16.9 million—up from $10 million the prior year. Firms managing more than $250 million reported a steady climb as well, reaching $10.1 million in 2024. The median RIA experienced a 16.6 percent increase in assets under management and a 17.6 percent rise in revenue. Client counts also climbed, with a median increase of 4.8 percent.
Schwab warns that RIAs now face the challenge of scaling their teams. Schwab estimates that the typical firm will need to hire four new roles over the next five years. Based on current growth projections, the industry must add over 70,000 new staff during that time—excluding new firms entering the space or accounting for advisor retirements. Schwab's data also reflected the rise of larger RIAs fueled by organic growth and mergers and acquisitions.
According to InvestmentNews, the Schwab study finds that sixty-eight percent of firms reported using AI in some capacity, with most applying it to administrative functions, meeting preparation, and follow-up tasks. AI also supported email drafting, marketing content development, and client communication. Notably, firms managing $250 million or more tended to report the highest usage, typically leveraging AI for at least three different functions.
InvestmentNews opines that the Schwab study reveals a clear picture: independent advisors are not only keeping clients but also embracing technology, expanding their firms, and outpacing the broader industry in client service and operational sophistication.
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