RIAs have a fundamental duty to consistently provide investment advice that is in their clients’ best interests. To be successful, RIAs need to be able to look holistically at a client's financial situation and all the potential tools they can use to increase their wealth.
This is a challenge for many RIAs who do not have direct relationships with, or integrated access to, retail banks who often provide the most competitive rates for financial services products like loans.
Because of this gap we’re beginning to see a new evolution of Lending Tech that connects loan sources to RIAs in a few different forms. These include:
Traditional marketplace lending platforms
These platforms provide advisors with access to a network of banking and lending institutions and offer guidance and advocacy in delivering desired outcomes. These platforms are typically not integrated with RIA software requiring the advisor and their client to manually manage the loan application process.
in our current bear market it might not be a good financial decision to cash out stocks, bonds or even crypto to make a major purchase. Collateral loans allow clients to take advantage of their investments to provide liquidity without losing out on gains when the markets improve.
Retail bank programs
Some retail banks have developed programs for RIA’s that bundle traditional banking products like deposit accounts, credit cards and loans. These are nice benefits to be able to offer clients but limit an advisor’s ability to find the best rates across multiple financial institutions.
Intelligent Lending-as-a-Service platforms
Available as an integrated or stand-alone offering, an intelligent Lending as-a-Service platform uses data about a client’s financial needs and current investment portfolio to carefully match with a lending institution. This helps clients make more confident, educated financing decisions by presenting a number of relevant financing options available. It also allows RIAs to protect their AUM by offering solutions that keep client assets intact and working.
Cion Digital’s Wealth Advisor Lending Platform enables RIAs to proactively offer a wider selection of relevant and competitive loan products to their clients, intelligently matching clients’ needs to lenders. Our platform allows RIA’s to effortlessly extend the advisor-client relationship while we do the heavy lifting.
To request a demo of Cion’s Wealth Advisor Lending Platform click here.