Betterment has launched a pilot of its planned client referral program for a select group of RIAs using its custodial platform. The program aims to connect Betterment retail clients with independent RIAs for personalized advice. If a client participates, they receive advisor names and contact info to arrange services, with a 0.25% annual fee to the advisor on referred client assets.

The referral program is designed to attract RIAs from competitors like Charles Schwab and Fidelity Investments while competing with tech-focused firms like Altruist and Robinhood/TradePMR. BNY Pershing and Goldman Sachs’ Ayco have also disclosed plans for, or already launched, client referral programs in recent regulatory filings.

Betterment currently hosts around 600 firms on its custodial platform, serving 1 million clients with over $60 billion in assets. The firm recently expanded its model marketplace offerings to include asset manager options from Goldman Sachs, State Street Investment Management, and Vanguard. Advisors are utilizing this marketplace to access institutional investment expertise with lower overhead costs.

Read more at Yahoo Finance: Betterment Launches Pilot of RIA Referral Program