In this blog, we take a closer look at the importance of data ownership and how it enables RIA aggregators to enhance client experiences, and stay ahead in the competitive wealth management landscape.

In recent years, RIA consolidators have emerged as dominant players in the wealth management industry’s M&A landscape. Backed by private equity and armed with the resources to scale quickly, these strategic acquirers have reshaped the fastest-growing segment of the financial advisory world.

Between 2017 and 2022, consolidators led the charge in acquiring RIA firms, surpassing RIAs, banks, private equity firms, insurance companies, and independent broker-dealers in transaction volume. But what’s driving this consolidation trend? Data ownership is important.

The Growth Potential of RIA Consolidation

At its core, the appeal of RIA consolidation lies in the financial growth potential. Larger firms, with their economies of scale and diverse service offerings, are growing at an accelerated pace. However, the real game-changer is technology.

Advancements in API-first, cloud-based technology have transformed how consolidators onboard and integrate acquired firms. The days of building custom data connections and managing complex integrations to custodians and third-party systems are fading. Instead, modern technology streamlines these processes, making it easier for firms to transition client accounts and scale their operations efficiently.

Why Data Ownership Matters

Beyond onboarding, data ownership is becoming the cornerstone of operational excellence. Wealth management firms depend on data from a multitude of systems, including custodians, back-office providers, and third-party applications. Without a centralized “single source of truth”, firms face inefficiencies, data gaps, and heightened risks in areas like compliance.

Owning and standardizing data across clients, investment accounts, securities, and transactions unlocks powerful advantages. This trusted system of record enables firms to streamline operations, reduce onboarding times, and minimize risks associated with regulatory compliance and cybersecurity breaches.

For consolidators, this means faster integration of new firms, fewer resources spent on infrastructure, and a sharper focus on growth initiatives, such as acquiring more profitable accounts and delivering superior client experiences.

The Role of WealthTech-as-a-Service

Historically, achieving these efficiencies required significant investment in building and maintaining proprietary technology. However, WealthTech-as-a-Service platforms, like BridgeFT’s WealthTech API, offer a game-changing alternative. These solutions allow firms to take full ownership of their data while leveraging cutting-edge technology to optimize operations—without the burden of unnecessary costs or internal resource demands. 

With a robust, API-driven system in place, consolidators can direct critical resources to their core mission: serving clients and accelerating growth.

Data Ownership as the Key to Future Innovation

As artificial intelligence and advanced analytics become integral to wealth management, owning and leveraging actionable data is no longer optional—it’s a strategic imperative. Firms that adopt an owned-data model will be better positioned to extract valuable business intelligence, enhance decision-making, and create innovative client solutions.

Growth-focused RIA consolidators are already moving in this direction, recognizing that data isn’t just a resource—it’s the engine driving competitive advantage, profitability, and long-term success.

In an industry defined by rapid change and increasing competition, owning your data is no longer just about efficiency: it’s about survival and growth. For RIA consolidators, leveraging modern WealthTech solutions unlocks unparalleled opportunities to scale faster, serve clients better, and remain agile in an ever-evolving market.

As the wealth management landscape continues to evolve, firms that prioritize data ownership and technology-driven innovation will lead the way, redefining what’s possible in the RIA space.

BridgeFT for RIA Aggregators

BridgeFT’s WealthTech API platform is designed to provide seamless access to accurate, enriched, multi-custodial data through a single connection. By eliminating reliance on outdated, manual processes and fragmented systems, the platform empowers firms to scale efficiently while maintaining data accuracy and integrity.