Robinhood, TradePMR, and the future of wealth management

Flashbulb moments like Robinhood’s acquisition of TradePMR in February 2025 put a spotlight on the fact that change is rarely the gradual shift we plan for so carefully. Things that seem a good distance away have a funny way of accelerating into the here and now. It is time for the industry to wake up and make real commitments to keep up with the flashbulb moment taking place.

The recent acquisition of TradePMR by Robinhood isn’t just another business transaction — it’s a harbinger of transformative change in wealth management. This bold move highlights the rapidly merging worlds of fintech innovation and traditional advisory services.

Solving the organic growth puzzle

In my experience, one of the toughest challenges advisory firms face is attracting new clients. This year, we’ve seen that net flows for wealth management firms have stagnated at under 4% of assets when market gains are taken out of the equation.¹ It’s clear that the core issue here is client acquisition because RIAs generally excel in client retention, with rates often exceeding 95%.²

Moreover, custodian referrals — a source that traditionally contributed about 23% to RIA organic growth — are becoming less dependable.³ We’re seeing fewer RIAs involved in these programs, and some custodians are hiking up the costs to participate.

How fintech has changed the game

Over the past decade, fintech platforms such as Robinhood, Ally, Webull, SoFi, and eToro have revolutionized how clients engage with financial services. By eliminating high account minimums and providing streamlined, user-friendly experiences, they’ve set a new consumer standard. At Apex, we’ve been at the forefront of this shift, providing the underlying technology that supports these innovations. We’ve learned that reducing barriers and friction is essential for success.

The rise of Augmented Advice™

While digital tools are important, there remains a strong demand for human interaction. As fintech users age and their financial situations become more complex, the need for personal advice grows. Fintechs, like their traditional counterparts, are realizing the importance of complementing their digital offerings with human expertise. This echoes the early days of Schwab, where clients sought simple, curated investment options. Today, fintechs provide digital guidance but often lack the deep planning expertise RIAs offer.

There’s a significant opportunity for both fintechs and advisors to provide more sophisticated, tailored advice via virtual platforms — a trend the pandemic has accelerated. This convergence of fintech and RIAs represents the “augmented advice” segment. At Apex, we recognize that this is where the industry is headed, creating new opportunities for fintechs and RIAs to enhance their digital offerings.

Firms must adapt

Advisory firms need to remain competitive as fintechs advance, but fintechs must also recognize the necessity of humanizing their services. Relying solely on outdated, paper-based processes or purely digital solutions probably won’t satisfy clients whose financial needs require personalized attention. Both RIAs and fintechs must move towards integration and technology adoption, enhancing service offerings to meet modern consumer expectations.

Success of digital hybrids

Digital hybrids — firms that blend tech-enabled experiences with human guidance — are leading the charge in client acquisition, capturing a significant 24% of net flows despite being just 1% of RIA firms.4 These leaders, like Vanguard and the retail arms of RIA custodians, have invested time and resources into developing comprehensive, proprietary solutions.

Apex’s vision for a modernized industry

Imagine a fintech-inspired, advisor-focused solution that firms can easily deploy while keeping their brand at the forefront. Since 2012, Apex has supported fintechs as a B2B custodian. We’ve channeled our efforts into building an advisory custody platform that places advisors at the heart of client relationships while addressing modern consumer expectations.

The Robinhood and TradePMR acquisition should serve as a wake-up call for our industry. We must embrace the fusion of fintech innovation with trusted, personalized advice. I invite my peers to actively engage as we navigate these groundbreaking changes together. With the pace of change accelerating, it’s crucial for us to integrate fintech efficiencies with human expertise. Let’s not just keep up; let’s lead in this new era of wealth management.

William Capuzzi
CEO, Apex Fintech Solutions