Boston, February 3, 2021 – Many wealth management firms have been offering cash management and transactional banking capabilities to retail clients for decades through third parties or their own bank affiliates. Revenue from these banking entities has grown strongly over the years, and now nonbanks are eager to acquire banking capabilities of their own. While offering banking solutions to wealth management clients is not new, the importance of these solutions to wealth management firms of all types for acquiring, deepening, and retaining client relationships has grown.

This report provides an overview of the solutions available from traditional and challenger wealth management firms as well as a review of the banking and payments technology providers that have enabled nonbank wealth management firms to deploy innovative banking services in record time. It is based on approximately 20 interviews conducted throughout 2020 with traditional and challenger wealth management firms, and the technology and payments providers that help them deliver banking solutions. It also includes results from a Q2 2020 survey of 16,452 U.S. consumers ages 18 and older.

This 31-page Impact Report contains eight figures and six tables. Clients of Aite Group’s Wealth Management service can download this report, the corresponding charts, and the Executive Impact Deck.

This report mentions Acorns, Ameriprise, Aspiration, BBVA, Betterment, Charles Schwab, Coastal Community Bank (CCBX), Cross River, Edward Jones, E-Trade, Fidelity, Flourish/MassMutual, Galileo Financial Technologies, Green Dot, Interactive Brokers, IntraFi, Investor Cash Management, Lincoln Savings Bank, M1 Finance, Marcus by Goldman Sachs, Mastercard, MaxMyInterest, MetaBank, Morgan Stanley, NBKC Bank, Orion/Focus Client Solutions, Pershing, Personal Capital, Plaid, Q2, Qapital, Radius Bank, Raymond James, Reich & Tang, SoFi, Stash, Stone Ridge Securities LLC, StoneCastle, Sutton Bank, Synapse, The Bancorp Bank, Total Bank Solutions, U.S. Bank, UMB, Visa, and Wealthfront.