Advisors often pursue expanded client bases via high and ultra-high net worth prospects because the fees available from managing more assets across fewer clients can support higher levels of service.
However, wealthtech, especially AI, is changing that dynamic, especially when serving the mass affluent – clients with investable assets between $500,000 and $2 million. The economics of such portfolios often made them too small for advisors to pursue in the past, but wealthtech has reduced operational costs to a point that allows advisors to generate attractive profits serving these clients.
Wanted: The Mass Affluent
“At long last it looks like the robots are beginning to pull their weight!” said Greg Bogich, CEO of AcquireUp. “If you look at automated workflows, streamlined onboarding, and lower-touch processes, what you discover is that many advisors can now access the mass affluent market that was previously cost prohibitive.”
Tom Wilson, Head of Wealth Advisory at Orion, agreed: “Wealthtech is transforming how RIAs serve the mass affluent by dramatically improving operational efficiency and enabling personalized service at scale. What once required significant manual effort—like trade execution, rebalancing, and reporting—can now be automated through integrated platforms.”
Wilson continued, “This allows RIAs to reduce overhead while expanding their capacity to serve more clients with tailored advice. By streamlining workflows and centralizing data, RIAs can deliver high-touch service to a broader client base, making the mass affluent segment more accessible.”
Higher Levels Of Support
Bogich said wealthtech is providing a greater degree of support for mass affluent clients. “What used to be ‘reserved seating’ for HNW clients—like personalized insights and proactive planning—is now available to the people sitting in coach. Tech allows advisors to deliver VIP service without VIP overhead. Leveling the playing field through an API.”
Sindhu Joseph, CEO and Co-Founder of CogniCor, said it’s not simply adding more tech that increases support levels. “It’s about supercharging existing systems. AI can transform existing platforms by delivering real-time insights and suggesting logical actions inside the advisor’s workflow. That’s what elevates support levels—helping advisors stay proactive, relevant and deeply personal with more clients, especially in the fast-growing mass affluent segment.”
‘A Major Transformation’
“RIAs are in the midst of a major transformation, with wealthtech evolving from back-office support to a strategic growth driver,” Wilson said. “Over the next few years, AI and automation will further empower RIAs to analyze client data, anticipate needs, and deliver proactive advice. This will allow firms to deepen relationships while expanding their reach within the mass affluent market.”
John O’Connell, Founder and CEO of The Oasis Group, expects AI agents to accelerate middle- and back-office services in the next three to five years. “This automation will dramatically lower servicing costs for mass affluent investors. This enables advisory firms to grow by effectively servicing more clients with the same staffing levels and enables them to service those clients more profitably.”
Impact Of Robo-Robinhood
In March, Robinhood rolled out its Robinhood Strategies wealth management service with an annual fee of 0.25%, capped at $250 for Robinhood Gold members, significantly lower than typical advisory fees and presumably aimed at the mass affluent and below.
“The rise of low-cost digital offerings highlights the growing demand for accessible financial services among the mass affluent,” Wilson said. “For RIAs, this is a call to action: clearly communicate the value of personalized, fiduciary advice. By leveraging wealthtech to deliver tailored strategies efficiently, RIAs can differentiate themselves and capture market share in the mass affluent client segment.”
O’Connell agreed: “Robinhood’s capped-fee robo advisor signals aggressive competition for the mass affluent market by reducing cost barriers. Advisors and firms should emphasize holistic planning, behavioral coaching, and differentiated advice to compete effectively. These and other areas where automated solutions fall short should be focus areas for firms to retain and attract clients.”
Joseph cautioned not to confuse Robinhood’s new service with a comprehensive, actively managed financial plan.
“If Robinhood is going to provide meaningful personalized service, the platform will need a serious AI upgrade to achieve this goal,” Joseph said. “However, it’s AI insights combined with human wisdom that delivers the complete package. We are confident this can be done at an affordable price for the mass affluent—which will drive better results than just a robo-advisor. Advisors can win by using AI to deliver tailored, proactive service—at scale—without racing to the bottom on fees.”
Targeting Clients Below Mass Affluent
It’s possible that technology that enables advisors to reach the mass affluent will pave the way for advisors to profitably engage with clients under $500,000 in investable assets.
“We’re seeing the early stages of wealth management going the way of flat-screen TVs—what was once luxury is now accessible to almost anyone,” Bogich said. “Technology is democratizing financial advice so that if you’ve got money to invest, you’ll have options. It’s not just for the ultra-wealthy anymore—it’s for anyone with a goal and a login.”
Joseph agreed: “AI makes it possible to deliver relevant, timely advice to clients previously deemed too small to serve. By tapping into existing data and workflows, advisors can build long-term relationships early, grooming the next generation of mass affluent clients with minimal cost and maximum continuity.”
She added: “It’s proactive pipeline building, powered by the intelligence firms already have. This is how AI-empowered human advisors can outperform robo advisors at scale.”
“Robinhood’s solution has the ability to start a relationship with a prospective client very early in their wealth building journey,” O’Connell cautioned. “There will be many clients who do not outgrow the Robinhood solution as they become mass affluent and even to a millionaire investor. This long history may have an impact on the potential client pool for advisors.”
Larry Roth is CEO of Wealth Solutions Report and Founder and Managing Partner of Ascentix Partners.
