The Future of RIA Wealth Management: Consolidation, Tech Stacks, and Key 2026 Trends

The RIA industry is scaling up fast. SEC‑registered advisers now manage roughly $144.6 trillion for 68.4 million clients, with the number of firms and clients both growing mid‑single digits annually. At the same time, RIA industry consolidation has accelerated to record levels, fueled by private equity, aging founders, and the rising cost of staying competitive.​

For principals and COOs, the strategic question is no longer whether consolidation is reshaping the landscape, but whether your firm’s technology and operating model are built to thrive in a market dominated by larger, tech-forward competitors.

This article outlines three pillars of staying future‑proof:

1. Understanding the dynamics behind RIA industry consolidation
2. Building a scalable, AI‑ready RIA tech stack and choosing the right RIA platform solutions
3. Positioning your firm for shifting client expectations, fee pressure, and regulatory scrutiny

The Great RIA Consolidation Wave: Drivers and Dynamics

Segmentation and Key Players in the RIA M&A Landscape

RIA M&A is now structurally embedded in the industry. Depending on methodology, analysts counted roughly 270–360 RIA transactions in 2024, both record levels, with 2025 on pace to exceed 300–380 deals. Private‑equity‑backed consolidators and “platform RIAs” are increasingly setting the pace, while strategic RIA buyers and custodial platforms compete for scale and capability.​

The result is a barbell market: a small cohort of large firms captures a growing share of assets one analysis suggests roughly 70% of assets are now managed by about 7% of firms, with half of assets at just 2% of firms. Smaller RIAs must either professionalize rapidly or explore partnerships, affiliations, or transactions to remain competitive.​

Tailwinds Driving M&A Growth

Several structural forces continue to push RIA industry consolidation higher:

1. Aging advisor demographics and succession gaps
   Many founders are in or approaching retirement, and succession within the firm is often underfunded or non‑existent. External buyers offer liquidity, continuity for clients, and institutional infrastructure.​
2. Search for a scale to fund technology and compliance
   Technology spending and compliance overhead have risen steadily. Larger firms can amortize investments in integrated RIA platform solutions, cyber, and RegTech over a broader revenue base, boosting margins and enterprise value.​
3. Private equity capital and cheaper debt
   Rate cuts and abundant PE dry powder have reignited dealmaking. At times, PE has been directly or indirectly involved in 70–79% of RIA transactions, either backing aggregators or investing directly in RIAs.​
4. Client expectations for a broader, more sophisticated offering
   High‑net‑worth and next‑gen clients expect integrated planning, alternatives, tax and estate coordination, and a modern digital experience. Many sub‑scale firms see consolidation or platform partnerships as the fastest path to that capability set.​

Headwinds and Challenges in the Consolidation Market

Despite record volume, not all consolidation creates value. Integration risk is mounting:

• Valuation gaps between buyers and sellers in a more volatile rate and equity environment
• Operational complexity in unifying different PMS, CRM, trading, and reporting systems across acquired firms
• Cultural and brand misalignment that can trigger advisor and client attrition, undermining deal economics​

The common thread: technology and data architecture are increasingly central to whether consolidation outcomes are accretive. RIAs need tech stacks and partners that can absorb growth, support complex trading, and keep data normalized across multiple custodians and legacy systems.

Essential Technology for Modern RIA Firms

If consolidation is the structural trend, technology is the critical lever for staying independent, joining a platform on your terms, or scaling as an acquirer. Surveys show:

• 85% of RIAs see technology as critical to enhancing daily client service and communication.​
• 89% say delivering a high‑quality digital experience is a significant competitive advantage.​
• 67% of advisors now use integrated technology stacks, up from 48% in 2022, underscoring the shift away from disconnected point solutions.​

The Core RIA Tech Stack: 4 Must‑Have Categories

1. Customer Relationship Management (CRM)
   Centralizes client data, interactions, and workflows. An RIA‑specific CRM underpins segmentation, service models, marketing automation, and compliance documentation.
2. Portfolio Management Software (PMS)
   Handles performance reporting, billing, model management, sleeve accounting, and increasingly multi‑custodian data aggregation. A robust PMS becomes the system of record for investment data and is essential for scale.
3. Financial Planning Solutions
   Supports goals‑based planning, tax and estate modeling, and scenario analysis. Planning tools now integrate directly into client portals and can feed “plan‑to‑portfolio” engines that translate planning outputs into tradable instructions.​
4. Compliance and Reporting Tools
   Automate surveillance, trade supervision, books and records, marketing review, and regulatory reporting. As exam priorities expand to AI, digital engagement, and off‑channel communication, RegTech is a must‑have, not a nice‑to‑have.​

Featured RIA Platform Solutions for Efficiency Goals

Below is a non‑exhaustive snapshot of leading RIA platform solutions frequently cited by advisors, along with a trading‑focused layer tailored for active RIAs.

Spotlight: ETNA White‑Label RIA Trading Platform

Trading is often the weakest and most fragmented layer in traditional advisor tech stacks. For RIAs serving active investors, options users, or offering model‑driven strategies, a dedicated, white‑labeled, tightly integrated trading platform is a competitive weapon.

The ETNA white‑label RIA trading platform is designed to sit alongside your PMS and CRM as the execution and trading intelligence layer of a modern RIA stack. In practice, that means:

• Multi‑asset, multi‑device trading
  Support for equities, ETFs, options, and other instruments, accessible via web and mobile, under your own brand. This enables RIAs to offer a client experience that feels more like a modern brokerage app than a static portal.
• API‑first architecture for AI and quant workflows
  ETNA’s infrastructure is built around APIs that allow RIAs and third‑party developers to plug in algorithmic strategies, AI‑driven screeners, and external analytics engines. This is critical as AI‑driven stock selection, risk analytics, and options modeling move from institutional desks to independent advisors.​
• Deep integration into existing RIA platform solutions
  The platform is engineered to interface with leading PMS and CRM systems, so account data, models, and trade instructions can flow programmatically between systems rather than via CSVs and swivel‑chair operations.
• White‑label branding and differentiated UX
  RIAs can deliver a branded trading and portfolio experience to end clients helping them stand apart from templated custodian portals and strengthening firm equity.

In an environment where many custodians and TAMPs are racing to offer “good enough” trading capabilities, owning a flexible, API‑driven trading layer lets RIAs experiment with AI‑powered strategies while keeping the advisor firmly “in the loop.”​

Choosing the Right Software: Beyond Today’s Needs

When evaluating RIA platform solutions, decision makers should use a future‑back lens rather than simply solving for current pain points. A practical checklist:

• Integration capabilities – Native, real‑time integrations with your core PMS, CRM, custodian, and trading systems (prefer APIs over flat‑file uploads).
• Scalability and performance – Proven ability to handle higher trading volumes, more accounts, and multi‑custodian data without latency or data integrity issues.
• User experience for both staff and clients – Intuitive UIs reduce training time and errors; a differentiated client portal is increasingly a growth driver, not a cosmetic add‑on.​
• Future‑proofing and API access – Open data models and documented APIs that allow you to layer in AI agents, custom analytics, and new workflows as they emerge.​
• Transparent cost structure and total cost of ownership – Evaluate not only license fees but also implementation, integrations, and the internal headcount required to support and extend the platform.

Key Trends Shaping the RIA Landscape in 2025

Shifting Client Expectations and the Demand for Digital

Younger and more digitally native investors are accelerating the shift toward always‑on, personalized, and transparent experiences. They compare their advisor’s portal to consumer apps not to legacy broker workstations.​

“Gen X and Millennial clients now expect their RIA to feel like a modern fintech app with a human fiduciary behind it: intuitive digital self‑service, real‑time visibility into their portfolios and goals, and proactive insights powered by data and AI. Firms that cannot deliver this integrated experience will increasingly lose next‑generation wealth to more tech‑forward competitors.”

Surveys show that 89% of RIAs agree that delivering a high‑quality digital experience is a major competitive advantage, and 71% plan moderate or aggressive investment in onboarding and account data management technologies over the next two years. That spending is increasingly directed toward integrated RIA platform solutions that unify planning, reporting, messaging, and critically trading.​

AI and Algorithmic Trading Move Mainstream

AI has shifted from hype to utility in wealth management:

• In one analysis, 95% of RIA firms reported using AI tools across their businesses, compared with 4 times the adoption rate at banks/trusts.​
• 85% of advisors now view generative AI as a “help” to their practice (up from 64% a year earlier), with 76% reporting immediate benefits from AI‑enabled tools.​
• 82% of advisors plan to invest in generative AI in the coming years; 96% believe it can transform client service and investment management, and 97% expect its biggest impact within three years.​

Today’s practical use cases include:

• Note‑taking, meeting summaries, and automated follow‑ups
• Content and marketing automation
• Compliance pre‑checks and documentation support
• Portfolio rebalancing and what‑if analysis
• AI “agents” that can execute multi‑step workflows under human oversight, such as opening accounts or pulling data across systems​

On the investment side, AI‑driven and algorithmic trading tools once limited to hedge funds are now widely accessible. Platforms and tools provide:

• AI‑generated trade ideas based on pattern recognition and sentiment analysis​
• Backtesting environments for systematic equity and options strategies across multiple asset classes​
• Advanced options analytics that can simulate thousands of scenarios in seconds, helping advisors design hedging or income strategies tailored to client risk profiles​

For RIAs, the key isn’t to “out‑bot” retail day traders. It is to selectively embed AI into the trading and monitoring layer to:

• Enhance risk management and scenario planning
• Personalize portfolios at scale (e.g., tax‑aware and ESG‑aware rebalancing)
• Automate routine trading tasks while preserving human judgment on suitability and client goals​

Platforms like the ETNA white‑label RIA trading platform, with their API‑first design, multi‑asset support, and integration into existing stacks, are well‑positioned to serve as the execution backbone for advisor‑supervised AI and quant workflows.​

Navigating Fee Compression and the Value Proposition

Fee compression continues, particularly for basic asset management. At the same time, clients increasingly expect holistic wealth services tax, estate, business succession, and even cash‑flow and benefits optimization within a single relationship.​

Winning RIAs respond not by racing to the lowest basis point fee, but by:

• Expanding advice scope into tax‑aware investing, estate planning, and retirement income strategies
• Using planning software and data from their RIA platform solutions to demonstrate progress toward goals, not just performance vs. benchmarks
• Leveraging AI and automation to deliver “family office‑style” coverage to the mass affluent without needing to double headcount​

Regulatory Changes and Compliance Focus

Regulators are paying close attention to how RIAs use technology especially AI and digital engagement. Beyond ongoing focus areas such as Reg BI (for dually registered advisors), cybersecurity, and off‑channel communications, one particularly important prospective change is the SEC’s proposed rule on conflicts of interest arising from the use of predictive data analytics and similar technologies.

Predictive Data Analytics & AI Conflicts Rule (Proposed)
The SEC has proposed rules that would require broker‑dealers and RIAs to identify and eliminate or neutralize conflicts of interest that arise from their use of predictive data analytics, machine learning, and other optimization technologies in investor interactions. In practice, if finalized, RIAs using AI‑driven tools to recommend or trade securities may need to:

• Document how algorithms are designed and tested
• Demonstrate that optimization logic does not systematically favor the firm over the client
• Enhance reporting and record‑keeping around AI‑influenced recommendations and trades

For RIA leaders, this reinforces the need for:

• A coherent data and model governance framework
• Audit trails that tie AI‑influenced recommendations back to client objectives and firm policies
• Trading and portfolio systems (like ETNA’s platform) that can expose logs and APIs needed for evidence and testing

Looking Ahead: How RIAs Stay Future‑Proof in a Consolidating Market

RIA industry consolidation will not reverse. Record M&A volume, rising private equity participation, and increasing asset concentration at large firms all point toward a more institutionalized marketplace. Yet the same forces creating “mega‑RIAs” also create opportunities for agile firms that can leverage technology and niche specialization.​

The strategic imperatives are clear:

• Scale, without necessarily selling – Independent RIAs can partner with platforms, leverage white‑label trading and client portals, and use AI to expand capacity before they consider an outright sale.
• Technological fluency as table stakes – Integrated, API‑first RIA platform solutions are now a prerequisite for growth, not a luxury. Trading, data, and planning must work together, especially as AI use increases.
• Adaptive, client‑centric service models – Firms that continually refine their client experience digitally and personally will win the next generation of wealth.

A practical next step is to perform a joint M&A and tech‑stack strategy review:

1. Map where your firm sits on the consolidation spectrum (potential acquirer, platform partner, or future seller).
2. Audit your current tech stack against the integration, scalability, and AI‑readiness criteria outlined above.
3. Identify gaps in trading, data accessibility, and client experience that could be addressed by modern platforms like the ETNA white‑label RIA trading platform.

Firms that move now modernizing their tech stack, experimenting with AI under strong governance, and clarifying their role in the consolidation wave will be the RIAs that not only survive the next five years, but set the standard for what a “future‑proof” advisory business looks like.