Orion Introduces Monthly Support Fee for AI and Data Services
What happened
Orion introduced a monthly Connected Ecosystem Support Fee for its AI and data services provided to RIA firms. The fee is intended to fund continued investment in the security and reliability of Orion’s artificial intelligence and data efforts. Orion stated that the fee is based on the amount of data each partner consumes, though the calculation formula was not provided. The first fee payments were invoiced in October and are due in November.
From wealthmanagement.com
Why it matters
The introduction of this fee changes the pricing model for AI-driven advisory services. Orion supports thousands of RIA firms, managing $6.6 trillion in assets under administration, including $211 billion in wealth management assets.
From wealthmanagement.com
Who's involved
- OrionProvides AI and data services to wealth management firms.
- Wealth ManagementReceives AI and data services from Orion.
- ArmijoCo-founded Dispatch, placing him in the wealth management sector.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Morgan StanleySpeculative
Could face increased operational expenses due to the new vendor pricing from Orion.
- Northern TrustSpeculative
May experience higher operational costs related to the new vendor pricing.