A differentiator for your business — no matter the market
Wealth management teams are facing strong headwinds from multiple directions today: unpredictable market volatility, fierce competition for talent, and changing demands from investors. Differentiating your firm and growing your business in these conditions can be a daunting challenge.
One unexpected tool that can help wealth managers thrive in any market is securities-based lending (SBL). The most obvious upside might be the incremental revenue stream, but SBL brings value in several other ways as well — helping firms tackle headwinds and come out ahead.
Let’s explore how SBL can help with recruiting, retention, and revenue growth. (For more on Broadridge’s turnkey, digital SBL offering, check out our article on the benefits of SBL-as-a-Service.)
Recruiting: Signal your value to top advisors and clients
In recent years, advisors have not only been moving between firms, but also leaving wealth management all together. These dynamics are compounded by a lack of new incoming talent, to the point where McKinsey estimates that the industry could face a significant shortage of 90,000 to 110,000 advisors by 2034.1
With a shrinking pool of top advisor candidates in high demand, wealth enterprises must clearly demonstrate the value of their platform and product offerings. Especially among successful HNW and ultra-HNW advisors coming from wirehouses and larger firms, many may already have significant loan books they need to transition to their new firms. These “lending advisors” expect access to credit solutions, and are likely to write an average of 24 loans per year — so appealing to them with a strong SBL platform is well worth the effort.
Similarly, more and more affluent investors are looking for “one-stop shop” advisors and firms to help them with both sides of their personal balance sheets, managing assets and credit needs with a holistic approach. In fact, as many as 82% of clients seeking advice are looking to work with a single financial provider.2 By offering SBL capabilities, firms can attract sophisticated clients seeking liquidity options, as well as increase the likelihood that the lending clients of advisors in transition will follow their advisors to their new homes.
Retention: Deepen trust and strengthen relationships
When advisors focus only on investors’ assets, they miss out on the opportunity to help their clients meet their liquidity needs. But when advisors are equipped with tools like SBL, to help them deliver more holistic advice and more personalized investment strategies that address credit management, they feel more confident in how they engage their clients — and clients feel greater satisfaction as a result.
Whether clients need liquidity for real estate, business, or lifestyle expenditures, SBL empowers advisors to open up new avenues of conversation and become their clients’ primary financial partners. Advisors can help investors access cash easily and at lower cost compared to other options like mortgages or HELOCs. Plus, SBL enables investment strategies to stay intact and helps investors avoid triggering taxable events. User-friendly solutions like Broadridge’s SBL-as-a-Service platform make the lending process easy, fast, and secure. Advisors can originate loans and secure in as little as just two or three days.
The inherent value of securities-based lending helps wealth firms retain their best advisors and clients, but our platform also offers patent-pending predictive analytics for an extra boost. Leveraging AI, our analytics surface indicators of likely churn among existing borrowers, helping firms and advisors optimize their retention efforts.
Revenue growth: Attract additional AUM
As firms and advisors demonstrate their commitment and capabilities as full-service wealth partners, over time their clients are likely to trust them with a greater portion of their assets. But in addition to this organic gradual growth, SBL can also help grow AUM more directly.
SBL can help advisors attract more AUM from their existing clients, who might seek to maximize their portfolios’ lending power and help keep their loans correctly collateralized. Among firms who utilize Broadridge’s platform, it’s common to see incremental AUM inflows of 10% to 15% driven by SBL. The AI-enabled predictive analytics mentioned above also identify high-potential prospects among current clients, enabling firms and advisors to grow their businesses more easily.
Overall, SBL can be a significant boost to your business — many Broadridge customers have reported portfolio growth rates of 20% or more per year. Offering this valuable liquidity source for advisors and investors to utilize is an appealing win-win, especially in times of economic uncertainty.
Take the next step with Broadridge
As the pioneer and market leader in SBL-as-a-Service, we power revenue and AUM growth for many of the biggest banks and wealth managers in the industry. No matter where you are in your SBL journey, our team can guide you in accelerating your success.
For more information, please contact david.vanosten@broadridge.com or visit broadridge.com/securitiesbasedlending
Modular flexibility. Best-in-class innovation. Consultative expertise.
1 McKinsey, “The looming advisor shortage in US wealth management,” 2025
2 Cerulli, U.S. Retail Investor Advice Relationships 2024
