RIA Firm Experiences Record Growth With Riskalyze, as Affiliated Advisors Average a 27% Revenue Increase
How the Risk Number® empowers PFG advisors to set client expectations, win new business, and document their fiduciary care.Download PDF
MISSION & VISION
Priority Financial Group (“PFG”) formed their hybrid RIA in 2012 and today offers multiple affiliation models to suit whatever alignment works best for each individual advisor. Those affiliations include bank or credit union options, a true independent model, and a cross-platform option that connects independent advisors with financial institutions.
Whichever affiliation an advisor chooses, there’s one thing that never changes about PFG: Its strength and reputation are built on working only with quality advisors who put their clients first. PFG is proud of the fact that its affiliation base has a higher-than-average number of female advisors, as well as advisors with the CFP® designation.
From the first time he saw Riskalyze on a product demo, Michael Prior—the founder and CEO of PFG —was impressed with the functionality Riskalyze offered. “It was exactly what we wanted to better help our clients align their portfolios with their personalities,” he said. “When you sit down and go through the Riskalyze process with someone, you get them to focus on what’s tolerable for them in up and down markets.’
The Risk Number® Assessment requires investors to confront the actual dollar amount they’re comfortable with losing in a down market—not just the percentage they might lose, like most risk questionnaires present.
“Sometimes a client will say they’re comfortable with losing 10% but then when you show them that’s equivalent to $20,000 on a $200,000 portfolio, they change their mind. That’s why the Risk Number matters,” Prior said.
Simply put, the Risk Number helps advisors to align investor expectations more accurately, right from the start.
Immediately after implementing Riskalyze, the PFG team made it a core component of the firm’s tech stack. Now, Riskalyze sits at the center of the firm’s technology solutions along with highly integrated partners Orion and Salesforce
HOW PUTTING RISKALYZE AT THE CENTER OF CLIENT COMMUNICATION ENHANCES THE VALUE OF PFG
- Managing Client Expectations
“When I saw Riskalyze for the first time, I knew immediately that it would be essential for managing client expectations,” said Prior.When clients are fully bought into their investment portfolio and strategy, they’re less likely to panic in a down market.For PFG’s advisors, that means they can spend more time deepening relationships instead of fighting fires.
- Finding the Right Fit for Prospects
“It’s powerful when you can show a prospect that their current portfolio is out of alignment with their Risk Number, and then show them an aligned portfolio right then and there.”Riskalyze has helped PFG with client relationships and retention, but it’s also enhanced the firm’s growth too.Riskalyze helps limit the back-and-forth of prospecting and puts the advisor in a position of strength from the get-go
- Protecting the Best Interests of Clients
“We’ve always had a culture of high compliance coupled with high service, well before Reg BI or the DOL rule were introduced,” said Prior.It was evident early on that Riskalyze would fit in well with the fiduciary focus valued by everyone at PFG.From a compliance standpoint, the Risk Assessment gives PFG advisors a simple way to record client alignment with a recommended portfolio.
LET’S SEE THE RESULTS
Since its implementation—which Prior was quick to note as much easier and faster than other tech platforms the firm had tried in the past—PFG has appreciated the way that Riskalyze’s service team has supported its advisors, as well as the way the two companies’ values align
And that alignment has led to continued business growth. PFG has posted record years of growth, even amidst a Broker-Dealer change in 2018.
In fact, while the S&P 500 was down roughly 6% for that year, the advisors affiliated with PFG averaged an increase of 27% in gross revenue.
“There’s no question that having Riskalyze has helped us to improve our conversations, retention, and growth,” Prior said. “It has provided us with a premier, flexible risk platform for our advisors that serves as a great tool in both strong and weak markets.”
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