RIAs Excel in Client Retention but Need a Strategy for Boosting Referral Business

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors.

We may be living through the golden age of registered investment advisors.

Charles Schwab’s latest RIA Benchmarking Study paints a picture of an industry that has mastered the fundamentals. RIAs have retained 97% of their clients over the past decade. “It’s one of their superpowers,” said Lisa Salvi, managing director of Charles Schwab Advisor Services. That level of retention is virtually unheard of in financial services, she added, reflecting the deep relationships and high-touch service that RIAs provide. Also, the median firm’s assets under management have grown from just over $150 million in 2005 to $712 million in 2025.

But success has raised the bar. As firms mature, squeezing out even one additional percentage point of organic growth has become increasingly difficult. According to Salvi, practices that adopt technologies like artificial intelligence or replace informal business development efforts with structured growth plans can unlock meaningful gains in both growth and firm value.

Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks.

READ ALSO: Inside Wall Street’s Blockbuster Second Quarter and Prenups Are on the Rise: Here’s How to Talk About Them With Clients

The AI Revolution

Many advisors took their first steps toward AI adoption by using models for meeting notes. Now, Schwab says firms should think much bigger.

Like the arrival of personal computers or the internet, AI should be viewed as a firmwide operational tool rather than a standalone technology, Salvi said. Beyond client meetings, firms are using AI in recruiting, administration, marketing and communications, with some even incorporating it into systems that house client data, though she warned that firms should be careful when doing so.

AI adoption has accelerated quickly. Some 83% of RIAs reported using AI, while roughly one-third said senior leadership has established a formal vision for how the technology should be integrated into the business. “AI is among the top strategic priorities for advisors, when it wasn’t even on the list a few years ago,” Salvi said. “It’s the No. 1 thing they want outside help with.”

The study also found:

• Firms with a written marketing plan, a clear definition of their ideal client and an articulated value proposition attracted 87% more new clients and 127% more new client assets in 2025 compared to the previous year.

• After financial planning and tax services, charitable giving and estate planning are the fastest-growing services RIAs have added in recent years.

Tell Your Friends. While client referrals remain one of the industry’s biggest growth opportunities, fewer than half of RIAs have a formal strategy for generating or tracking referrals.

The process doesn’t have to be complicated, Salvi said. Advisors can simply ask at the end of a meeting whether a friend or family member could benefit from financial advice, or mention a service that might be relevant to someone in the client’s network. Just as important, firms should measure which conversations actually produce referrals. “You can’t just tell your advisors, ‘Everyone needs to get five more clients,’” Salvi said. “You need to track what actually gets them there.”

This post first appeared on The Daily Upside. To receive financial advisor news, market insights, and practice management essentials, subscribe to our free Advisor Upside newsletter.