AI-Native Firms Disrupt Wealth Management Custody

Business Insider reports that AI-native fintech startups like Altruist and Hazel are building custodial and advisor platforms that promise lower costs, automated back-office functions, and superior user experiences, challenging incumbents such as Charles Schwab and LPL Financial. With AI-driven features like automated rebalancing and tax-loss harvesting and potential basis-point fee reductions across the $8 trillion independent RIA channel, incumbents face meaningful competitive and margin pressure.