Comprehensive study features trends, developments, and stats from over 100,000 fee-for-service financial planning engagements.
BOZEMAN, MT. FEBRUARY 21, 2023
AdvicePay, the leading platform for processing payments and overseeing compliance of fee-for-service financial planning, announced today the release of the first of its kind industry research, “2023 Fee-for-Service Industry Trend Report.” Based on data compiled across the AdvicePay platform, the report highlights key trends from over 100,000 financial planning engagements that occurred in 2022 and combines them with insight and guidance to showcase how firms can capitalize on the accelerating shift to alternative fee models in 2023.
According to the report, 83% of all invoices sent to clients were for subscription billing, showcasing the growth of advisors providing their financial planning services through an ongoing, subscription-based model. Based on the fee-for-service movement, firms are realizing a 457% increase in subscription-based revenue, along with an overall 1,750% increase in new fee-for-service engagement subscriptions within the first two years of implementing AdvicePay.
“In the face of one of the most challenging global economic environments in recent memory, AdvicePay’s groundbreaking Fee-For-Service Industry Trend Report reveals that consumer demand for standalone financial planning is growing rapidly, and adoption of the fee-for-service business model by financial advisors shows no signs of slowing down,” said Bill Winterberg, Vice President of Financial Planning Growth for AdvicePay. “The substantial growth in revenue and subscription engagements demonstrates that advisors are able to successfully engage households traditionally turned away by firms that maintain minimum asset requirements, all supported by an efficient and secure payment workflow solution.”
According to the report: “Global stock market losses, record inflation, and the impending generational transfer of wealth, is driving next-generation clients to engage financial professionals, while advisory businesses seek ways to grow sustainably and decouple revenue from stock market volatility. By introducing a subscription model for fee-for-service financial planning, firms can accelerate their growth by engaging the 90% of households who do not work with a financial advisor.”
Further evidence of these trends and growth are documented in a milestone reached during 2022 as the AdvicePay platform surpassed $300 million in lifetime fee-for-service revenue.
The report also includes links to an on-demand guided tutorial for how advisors can stand up a fee-for-service business model, including implementing fee-for-service engagements, pricing benchmarks, annual client service calendars, and more. Additionally, AdvicePay will be hosting a unique, “Ask Me Anything” live webcast on “Scaling Fee-for-Service into a Revenue Center for your Enterprise,” on February 22, 2023 at 3 pm ET featuring AdvicePay co-founders and veteran financial advisors who pioneered fee-for-service financial planning, Michael Kitces and Alan Moore. Large RIAs, Broker-Dealer firms, and their affiliates can register here.
To learn more about the AdvicePay platform and to download the 2023 Fee-for-Service Industry Trend Report, visit https://info.advicepay.com/trends
Established by well-known financial advisors Michael Kitces and Alan Moore, AdvicePay is the industry-leading billing and payment workflow solution created specifically for 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.
Nexus Strategy, LLC