Serving the Next Generation of Clients

Michael Batnick spoke with Robb Baldwin, ⁠CEO of TradePMR, to discuss the evolution of the RIA custody business and what comes next now that TradePMR is part of Robinhood. Robb shares the story behind founding TradePMR, the types of independent advisors the platform was built to serve, and how Robinhood’s entrance into wealth management changes the competitive landscape. They dig into the opportunities to challenge incumbents like Schwab and Fidelity, the changing economics of advisor referral programs, and what TradePMR and Robinhood are building differently. (Listen)

Advisors barely have enough time to do their current jobs, let alone get into the business of building custom, vibe-coded apps. For sure, there are opportunities to build tools that might help in very specific circumstances. For the most part there is no shortage of tools to fulfill the core mission of advisors. Don’t forget advisortech companies are going to be going full throttle to include AI capabilities where available.

The headline is that the minimum referral in the Schwab Advisor Network will go from $2 million to $5 million. What’s changing is the fundamental relationship between Schwab and advisors who relied on it for client referrals. Charles Schwab wants to turn its customers into clients, and with that expand the potential revenue it can generate. Good for Schwab, bad for advisors who bet their business on the old model.