Betterment Advisor Solutions (BAS), the custodial platform for independent Registered Investment Advisors (RIAs), is making significant strides in reshaping the financial advisory industry.
Through a combination of digital technology, product offerings, and strategic acquisitions, Betterment is enabling modern advisors to meet the evolving needs of their clients while navigating a fast-changing industry.
Recent developments, including insights from the 2025 Betterment Advisor Solutions Survey, the launch of an all-digital solo 401(k) product, and the acquisition of Ellevest’s automated investing business, underscore Betterment’s commitment to driving growth and efficiency for RIAs.
The 2025 Betterment Advisor Solutions Survey, released on September 4, 2025, highlights how independent advisors are balancing the opportunities and risks of artificial intelligence (AI) with technological transformation and business growth.
The survey, which gathered insights from 500 U.S. RIAs managing between $10 million and $250 million in assets, reveals a significant shift in the wealth management industry.
As the “Great Wealth Transfer” looms—where Millennials are set to inherit substantial wealth from Baby Boomers—advisors are under pressure to adapt to the digital preferences of younger clients.
According to the survey, 53% of advisors now use AI to stay updated on industry trends, surpassing the 48% who rely on social media for the same purpose.
Younger advisors (Gen Z and Millennials) leverage AI to streamline administrative tasks, while older advisors use it to enhance client communications.
However, concerns about AI’s reliability persist, with advisors emphasizing the need for human oversight to mitigate risks.
In another significant move, Betterment Advisor Solutions announced the launch of an all-digital solo 401(k) in February of 2025, tailored for independent advisors and their self-employed clients.
Built on the existing record-keeping system that powers Betterment at Work, this product addresses a critical gap in the market for simplified retirement planning solutions.
Solo 401(k)s offer advantages for self-employed individuals, such as higher contribution limits and flexibility, but their setup and maintenance have historically been complex.
Betterment’s digital-first approach streamlines the process, providing a seamless experience for both advisors and clients.
Thomas Moore, Head of Betterment Advisor Solutions, noted:
“The solo 401(k) is one of our most requested new products, and we are thrilled to launch a solution tailored to this market.”
The survey data supports this move, with over 80% of advisors currently managing 401(k) plans and the majority of those who don’t expressing intent to do so, signaling the growing importance of retirement planning in advisory practices.
This launch is the first of several planned product enhancements for 2025, with BAS showcasing the solo 401(k) at the T3 Technology Conference in Dallas in March of 2025.
Further solidifying its leadership in the digital investing space, Betterment announced the acquisition of Ellevest’s automated investing business earlier this year.
This acquisition, set to transfer Ellevest’s automated investing accounts to Betterment around April 17, 2025, enhances Betterment’s offerings for clients seeking automated, diversified portfolios with tax-smart tools.
Ellevest, founded to empower women in wealth-building, will continue to focus on its financial planning and wealth management services for high-net-worth clients.
The move follows Betterment’s prior acquisitions of Wealthsimple’s U.S. advisory accounts in 2021 and Goldman Sachs’ Marcus Invest in 2024, reinforcing its strategy to expand its client base and technological capabilities.
Clients transferring from Ellevest will gain access to Betterment’s robust platform, which manages over $63 billion in assets for 1 million customers.
These developments highlight Betterment Advisor Solutions’ role as a key player in the RIA custodial space.
By integrating AI to enhance efficiency, launching retirement products like the solo 401(k), and expanding through strategic acquisitions, Betterment is equipping advisors with the tools to thrive in a digital-first, client-centric era.
As the wealth management industry matures, BAS’s focus on technology, scalability, and personalized solutions positions it to help advisors and their clients.