The milestone reflects the growth in non-AUM advisor fee models and increasing interest in services beyond investment management
BOZEMAN, MT. NOVEMBER 14, 2023
AdvicePay, the industry-leading platform for processing payments and overseeing compliance of fee-for-service financial planning, announced today that its fee-for-service solution surpassed its one-millionth financial planning fee transaction with consumers since its public launch in 2018.
The milestone reflects the dramatic shift in alternative non-AUM advisor fee models and the
growing popularity and growth of AdvicePay as the preferred solution for advisors, RIAs,
and Broker-Dealers looking for a complete, compliant partner for fee-for-service planning.
“This milestone signifies that fee-for-service financial planning is not just a trend; it
represents a significant revenue growth opportunity for advisory firms and enterprises.
Advisors continue to explore and implement business models that go beyond assets under
management to reach more next-generation consumers, and AdvicePay is at the center of
this shift,” said Alex Sauickie, Chief Executive Officer of AdvicePay. “It is gratifying to know
that we are the top choice for financial firms and advisors looking to grow businesses built
on the strength of their advice and expertise. For us, it is just the beginning.”
Over the past two years alone, AdvicePay has experienced a 102% increase in advisors
added to the platform and a 193% growth in transaction volume. For the second straight
year in 2023, AdvicePay was named one of America’s fastest-growing private companies
on the prestigious Inc. 5000 list.
AdvicePay was launched to the public in 2018, driven by the vision of co-founders Alan
Moore and Michael Kitces. They identified a glaring gap in billing and compliance systems,
ill-suited for billing recurring planning fees within financial firms and advisor practices.
“At the time of AdvicePay’s launch, financial advisors didn’t engage in subscription fee
models because they couldn’t; collecting a high volume of paper checks simply wasn’t
scalable, and gathering clients’ bank account information to bill them directly triggered
custody issues. So we built AdvicePay to specifically solve for that problem: how to
efficiently, compliantly, and scaleably expand their financial planning fees with recurring
revenue beyond AUM. In a similar manner to how the technology platform pioneered by
Schwab Advisor Services enabled independent RIAs to be able to scalably bill AUM fees for
the first time in the 1990s, catalyzing an entire shift in industry business models, AdvicePay
is uniquely positioned to drive the next industry-wide business model shift to fee-for-service
financial planning,” said Michael Kitces, co-founder of AdvicePay.
As the industry undergoes a fundamental shift from a simple assets-under-management fee
structure to a hybrid system, most existing billing systems remain inadequate. AdvicePay
allows advisory firms to efficiently expand their business models, offering the flexibility to
charge minimum advice fees, ongoing subscription fees, and standalone planning fees. This
not only enhances profitably with existing clients but also opens up new markets to clients
who don’t have assets to manage or a need to purchase a product and simply want to pay
for financial planning advice directly.
To learn more about the AdvicePay platform, log onto www.AdvicePay.com.
Established by well-known financial advisors Michael Kitces and Alan Moore, AdvicePay is the industry-leading platform for overseeing the compliance, delivery, and payment
processing of fee-for-service financial planning. Financial services firms and their advisors benefit from efficient workflows designed exclusively to support their fee-for-service financial planning revenue, including up-to-date compliance and data security management, all in one unified platform.