Betterment Launches Pilot of RIA Referral Program

Core Insights - Betterment has initiated a pilot client referral program aimed at connecting select retail clients with independent registered investment advisors (RIAs) on its custodial platform [2][3] - The program is designed to attract RIAs from larger custody firms like Charles Schwab and Fidelity Investments, while also competing against tech-focused rivals such as Altruist and Robinhood/TradePMR [3] Group 1: Program Details - The Betterment Advisor Network will provide retail clients who opt-in with the names and contact information of advisors utilizing Betterment's custodial services [2] - Advisors will be charged a 0.25% annual fee on the assets of referred clients [2] - Referrals will be tailored based on clients' financial situations and investment preferences, including service needs, costs, location, and communication preferences [3] Group 2: Market Position and Expansion - Betterment currently supports around 600 firms on its custodial platform and has approximately 1 million clients, managing over $60 billion in assets [4] - The firm has recently expanded its model marketplace to include asset management offerings from notable firms such as Goldman Sachs, State Street Investment Management, and Vanguard [4] - The referral program is part of Betterment's strategy to enhance its service offerings and attract more advisors to its platform [5]