The Strategic Imperative of Appointing a Chief Growth Officer

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In the dynamic landscape of wealth management, the quest for sustainable growth has never been more challenging or crucial. Industry studies show that Many firms are struggling to create organic growth.

Fidelity’s 2023 Registered Investment Advisor (RIA) Benchmarking Study showed a precipitous drop in organic RIA growth from the five and six percent growth rates of 2019 and 2020 to 3.6 percent for firms over $1 billion in assets under management (AUM) and 3.2 percent for firms under $1 billion in AUM.1 The Schwab 2023 RIA Benchmarking Study showed this trend worsened, and it found that AUM decreased 7.1 percent for the median firm.2

This anemic and decreasing growth occurred over the same period when Statista reported a growth in the number of high-net-worth individuals in the United States from 6.3 million in 2019 to 7.4 million in 20213 and to 7.9 million in 2022. Most RIAs and wealth managers in general are quick to describe their target market as high-net-worth individuals. The increase in the HNW target market was 25.4 percent from 2019 to 2022.

Firms that experience decreasing revenue and slow growth in a growing market generally lack a well-defined focus on capturing market share through a strategic growth plan.

Growth minded wealth management firms need a long-term, forward-facing vision that serves as the foundation for a company-wide strategy. Enter the Chief Growth Officer (CGO), a role that has emerged as a pivotal force driving growth-focused wealth management firms toward significantly better success than their peers.