In 2020, around 50 million American households were involved in money management. In 2024, 62 million were. But while rollovers were a key part of this, they were not the big story.
A new report from Hearts & Wallets published today (April 25) reveals that an estimated $800 billion was moved in rollovers in 2024, but transfer of assets and new deposits together totaled $1.3 trillion.
This underscores a critical shift in how clients are engaging with their finances, with implications for both acquisition and retention strategies.
Interestingly, this activity is predominantly driven by households with under $1 million in investable assets, although a significant 50% of wealthier households also engage in annual money movement. This broad participation emphasizes the need for advisors to cater to a diverse client base with tailored approaches.
Traditionally the focus for money movement, rollovers are common conversations with clients, but the report highlights the importance and opportunity for advisors in providing information and guidance on TOA and new deposits too.
“Devote at least as much attention to the customer experience of transferring assets and making new deposits as to rollovers,” Laura Varas, CEO and founder of Hearts & Wallets, said. “Households spread their net broadly during consideration and ultimately only complete a couple of transactions. Understanding motivations and more about specific consumer groups is critical to influence money movement.”
For rollovers, three key motivators are identified: “simplify my finances,” “get more involved myself” and “consolidate for better planning. But while "simplify my finances" is the primary driver for transfer transactions, "consolidate for better planning" motivates the largest dollar volumes.
Several firms are excelling at attracting account openings funded by new deposits, boosting those customers trying their services: Bank of America Merrill, Capital One, American Express, and Chime are the current leaders, although there is growing interest in JP Morgan Chase, Citibank, and Robinhood.
“Rollover and transfer calls to action should vary based on transaction size and consumer profile,” explained Amber Katris, Hearts & Wallets subject matter expert. “Campaigns should capitalize on the shift in consumer behavior from trial to consolidation.”
Overall, competitive gross flows in/out show Charles Schwab, Wells Fargo and Raymond James lead in net positive money movement. The biggest sources, currently in negative outflows, are DC recordkeepers with nascent affiliated wealth platforms, banks struggling to retain hot money attracted by interest rates, and American Express as it exits the IRA business.
The report, based on an analysis of customer-reported transactions to reveal competitive dynamics in money movement, uses the Hearts & Wallets Investor Quantitative Database, with more than 120 million data points from 80,000 US households over 15 years, including almost 6,000 in the latest wave.
Why “one big pool of money” needs predictability—and a plan.
Advisor recruiting climbed to its strongest pace in nearly two years, while CEO Richard Steinmeier said the firm has "cleared the decks" for bigger institutional deals.
The combinations involving Red Oak and AdvisorRankings illustrate how AI is reshaping both wealth firm operations and wealthtech platforms' business models.
New 5-in-1 onboarding tool aims to cut subscription paperwork as advisor demand for private markets accelerates
Connecting unique offerings with a specific client niche is a sure path to advisor satisfaction and success – but it all has to start with an intentional strategy.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
