Parent company BNY Mellon is investing more than $50 million in Pershing to accelerate the custodial firm’s growth in the wealth management and financial advisory industry.
The investment, announced at the firm’s INSITE 2018 conference in Orlando, Florida, will focus on three core areas: human capital, client experience and growth within the RIA industry.
“Positive forces of change in the industry, fueled by shifting investor preferences and a growing desire for transparency, are driving the growth of the advisory business,” said Lisa Dolly, CEO of Pershing, in a statement. “In an effort to continue to anticipate clients’ needs and industry changes, today we are announcing an additional multi-year investment of more than $50 million in our business, which will help us further accelerate our growth in the wealth and advisory market segments.”
The firm will be hiring new technology professionals to “deepen its integration and digital client experience capabilities” and it has created a new position, the head of advisor solutions platform strategy, and appointed Christina Townsend to fill that role.
It will be offering two new platforms to enhance the client experience: NetX360-Wealth, a wealth management platform for brokerage, bank custody and advisory businesses covering the full range of services from prospecting to client onboarding and investment management, and ManagedConnect, a dual contract management account offering (for clients contracting with RIAs and money managers) that allows RIAs to design customized portfolios connecting investors with a wide array of money managers.
Pershing is also ramping up investments in marketing services and tools to increase touch points with clients and drive growth and creating a new leadership development program for next-generation advisors.
“Firms that can design a service model optimized for their client’s unique needs, or that have a technical superiority, will be more likely to thrive over the long term,” said Mark Tibergien, CEO of Pershing Advisor Solutions. “This is a pivotal time to take our business to the next level so we can maximize our footprint among professionally managed, growth-oriented RIA firms.”
As of March 31, Pershing’s assets under custody reached $615 billion, up 11% from a year ago. Its focus is independent and corporate RIA firms as well as trust companies and multifamily offices that serve wealthy clients. Its RIA clients are firms that are professionally managed — not focused on individual practitioners — and seeking to grow, Tibergien tells ThinkAdvisor. “They have to focus on their clients, run their businesses efficiently and serve their clients more effectively.”
A total 752 RIA firms use the Pershing platform and their average asset size is $813 million, higher than the three other custodians in the RIA space: Schwab, Fidelity and TD Ameritrade.
— Check out Advisors Have Much to Gain With Broker-Dealer Arbitrage on ThinkAdvisor.