Fieldpoint Private, Max Launch RIA Private Banking Platform

Fieldpoint Private and MaxMyInterest (Max) have launched Benchmark, a private banking platform designed for independent Registered Investment Advisors (RIAs) and their clients, addressing a long-standing conflict of interest in the private banking sector [1, 2]. The platform aims to provide comprehensive banking services, including high-performance checking and savings accounts with enhanced FDIC insurance, and bespoke private client lending, without competing with RIAs for wealth management assets [1].

Addressing the RIA Banking Gap

The launch of Benchmark follows two years of development and is driven by the increasing migration of advisors from wirehouses to independent RIA firms [1]. Wirehouse advisors often benefit from integrated banking services, including mortgages, securities-based lending, and private checking accounts, which are difficult to replicate in an independent setting [1]. A Cerulli survey cited in the announcement found that 83% of wirehouse advisors view access to high-net-worth services, including private banking, as an advantage of their current firm, with 88% saying the same about lending products [1]. This highlights the role of banking as a retention tool for wirehouses and a challenge for breakaway teams [1].

The primary barrier for RIAs seeking to outsource private banking has been the conflict of interest, as most private banks operate their own wealth management businesses, making them competitors to independent RIAs [1]. Fieldpoint Private addressed this by divesting its own wealth management business in 2021 to focus solely on providing banking capabilities to other RIAs [1, 2]. This move positions Fieldpoint Private as a vendor rather than a rival, making its offering credible to RIAs [1]. Max, a cash management technology firm, has been providing solutions for affluent households since 2013, offering access to market-leading rates and expanded FDIC insurance [2].

Platform Features and Market Impact

Benchmark offers a turnkey solution that includes high-performance checking and savings accounts with FDIC insurance coverage above standard limits, achieved by distributing deposits across a network of participating banks [1, 2]. It also provides bespoke private client lending, such as mortgages, securities-based lending, and loans against art, collectibles, and aircraft [1]. Rodney Whitwell, President and CEO of Fieldpoint Private, stated that Benchmark allows private banking to be genuinely embedded in the independent advisor’s daily workflow, moving beyond mere referrals [2]. Gary Zimmerman, Founder & CEO of Max, noted that the platform fills a significant market gap, enabling RIAs to better compete with legacy wirehouses [2].

Fieldpoint Private has served RIAs since its exit from wealth advisory in 2021, forming partnerships with firms encompassing hundreds of advisor teams and over $150 billion in assets under management [2]. The platform aims to solve a recruiting problem for RIAs by allowing them to offer comprehensive banking services, potentially reducing the likelihood of advisors returning to wirehouses for integrated banking [1].

What to watch

• RIA Adoption Rates: Monitor the number of independent RIA teams that integrate Benchmark for their clients' banking and lending needs.
• Rival Bank Responses: Observe if other private banks follow Fieldpoint Private's model by divesting their wealth management arms to serve RIAs without conflict.
• Client Asset Flows: Track the volume of client deposits and lending activity channeled through the Benchmark platform as an indicator of its market penetration.

The success of Benchmark will depend on whether breakaway teams, accustomed to viewing private banks as competitors, will trust a bank that has structurally removed its wealth management arm to remain a neutral partner [1].