BNY Pershing, Goldman’s Ayco Start Client Referral Programs

Core Insights - BNY Pershing is set to launch a digital-first referral program called BNY Advisor Match, aimed at connecting advisors and investors to facilitate organic growth for clients seeking financial advice [1][6] - The program will provide one or two advisor referrals based on specific criteria established by BNY, targeting a diverse range of clients [6][8] - The referral program is part of a broader trend, with other firms like Goldman Sachs Ayco and Betterment also initiating similar programs to enhance client acquisition [4][5][7] BNY Advisor Match Program - The BNY Advisor Match program is expected to launch later this year, focusing on providing qualified leads to BNY Pershing clients [1][6] - Participating Registered Investment Advisors (RIAs) will incur an annual participation fee of $50,000 and an asset-based fee of up to 0.30% based on the value of referred clients' accounts [9] - The program aims to cater to both larger and smaller firms, although smaller firms may need to be cautious about the types of clients they expect to receive [2][3] Competitive Landscape - BNY Pershing and Goldman Sachs Ayco are entering a client custodial referral market that has been traditionally dominated by Charles Schwab and Fidelity Investments, with expectations of more competitors joining by 2026 [7] - Goldman Sachs Ayco has already established referral partnerships with major firms like Creative Planning and Mercer Advisors, indicating a competitive environment for client referrals [5][10] Industry Trends - Referral programs are becoming increasingly important for RIAs, with some firms relying on them for 40%-50% of their organic growth [14] - While referral programs can provide predictable growth, industry experts advise that they should be part of a diversified growth strategy, incorporating digital marketing and other client acquisition methods [15][14] - The referral landscape is evolving, as seen with Schwab's recent changes to its referral program, which increased the minimum client asset threshold significantly [16]