Broker Boom vs. Brokerage Bust: Where to Invest in Fintech and Wealth Management

The financial services landscape is undergoing a seismic shift: individual brokers are booming, while traditional brokerage firms are consolidating at a breakneck pace. This divergence creates a golden opportunity for investors to capitalize on two parallel trends—fintech innovation and wealth management evolution—that are reshaping the industry. Let's dive into the data, risks, and where to place your bets.

The Broker Proliferation Explosion

The rise of individual brokers—particularly in real estate—is staggering. Take Compass, which saw its sales volume soar by $46.59 billion since 2020, reaching $231.04 billion in 2025. Its acquisition of At World Properties fueled this growth, but it's not alone: eXp Realty grew its volume by $80.46 billion over five years, while The Real Brokerage, Inc. added $21.24 billion. These brokers thrive by leveraging technology and agility, avoiding the bureaucratic bloat of larger firms.

This data will show exponential growth, reflecting its 5-year sales surge.

But here's the kicker: These brokers aren't just real estate players. They're digitizing client relationships, offering personalized services, and even expanding into wealth management. Anywhere Advisors, which grew volume by $7.58 billion, is a prime example—its hybrid model blends brokerage and financial planning.

Brokerage Firm Consolidation: Survival of the Fittest

While individual brokers flourish, the brokerage firm sector is shrinking rapidly. From 2020 to 2025, the consolidation rate for specialty firms averaged 7%–10% annually, with three times the pace of retail brokers. The result? 28 firms now control over $1 billion in P&C premiums, up from fewer than five in 2009.

Marsh & McLennan (MMC) and Aon (AON) are the kings here. Marsh's acquisition of InSource Insurance Group and Aon's partnership with PayPal to serve small businesses highlight a strategic pivot: tech-driven diversification. These firms are buying scale, talent, and tech to stay relevant in a world where clients demand everything from insurance to crypto portfolios.

This comparison will underscore their resilience amid industry upheaval.

The Fintech and Wealth Management Gold Rush

This clash of trends is fueling two investable themes:

1. Fintech Platforms as the New Middlemen
2. Coalition, which uses AI to slash claims by 70%, is a game-changer. Its captive insurer model and tech stack are attracting traditional brokers desperate to modernize.

3. Insurtech startups (e.g., Lemonade, Root) are eating into legacy firms' lunch. Investors should eye ETFs like FTEC (Global X FinTech ETF), which tracks this sector's growth.

4. Wealth Managers Going Full-Service

5. Firms like AmeriLife Group (which bought Crump Life Insurance) are merging brokerage and wealth services. Clients want holistic advice—real estate, retirement, estate planning—all under one roof.
6. Balance Partners' acquisition of Vanguard Specialty shows how niche expertise (like professional liability) drives value. Look for wealth managers expanding into underserved niches.

Risks to Watch

• Direct Consumer Threat: Online platforms (e.g., Zillow, PolicyBazaar) are cutting brokers out of the equation. Only firms with irreplaceable tech or expertise will survive.
• Regulatory Tightening: ESG mandates and climate risk disclosures are forcing firms to rethink deals. Investors should favor companies with transparent sustainability strategies.
• Overvaluation: Brokerage stocks are pricey. Use pullbacks to buy; avoid chasing high-flying names like eXp unless you're a very aggressive trader.

Action Plan for Investors

1. Buy the Tech Enablers:
2. Coalition (if it goes public) or FTEC ETF for pure fintech exposure.

3. AON and MMC for firms blending brokerage with tech.

4. Diversify into Wealth Managers:

5. Target companies like AmeriLife Group (if listed) or BlackRock (BLK), which is expanding its wealth advisory arm.

6. Avoid the Losers:

7. Brokerages stuck in old-school models (no digital tools, no ESG focus) will vanish.

Bottom Line

The era of “one-size-fits-all” brokerage firms is over. The winners will be those who marry tech with personalized service—whether they're nimble individual brokers or consolidated giants with the scale to innovate. Investors who bet on this shift now could ride the next wave of financial services disruption.

Stay aggressive, stay informed, and never miss the pivot.