While RIAs and enterprise advisors may have the same priorities when it comes to serving their clients, new data from Envestnet suggest the two groups differ on several counts.
The wealth tech giant has revealed the most significant AI-driven insights among financial advisors in 2024, which showed notable overlaps and differences between RIAs and advisors at other enterprises.
Powered by its AI-driven Insights Engine, the findings reveal how enterprise advisors and RIAs are prioritizing specific areas to improve client outcomes and grow their practices.
"Advisors are leveraging these insights to enhance their clients' portfolios and develop more personalized, tax-efficient strategies," Molly Weiss, group president of Envestnet’s wealth management platform, said in a statement announcing the results.
The analysis identified two common priorities across both advisor groups: addressing underperforming products and utilizing tax-loss harvesting to mitigate tax burdens.
But enterprise advisors cited life insurance gaps as their third key priority area, reflecting an increased focus on holistic financial planning. In contrast, flagging high-fee products took third place on RIAs' insight rankings, highlighting a push toward cost-efficient investment solutions for clients.
"Having underperforming products and tax-loss harvesting at the top of both lists shows that advisors are increasingly turning to these insights in an effort to improve client outcomes, regardless of advisor type," said Jeremi Karnell, head of Envestnet data solutions. "These strategies help mitigate risk and optimize tax advantages, making them valuable in any market environment."
Looking further down the lists, the data also showed a growing focus on retirement planning, with both RIAs and enterprise advisors identifying “clients retiring this year” as a priority.
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