The U.S. trust industry is in the midst of a meaningful transformation.
According to Cerulli Associates’ 2024 report on U.S. Private Banks and Trust Companies, non-depository trust companies (NDTCs) — independent firms that provide fiduciary and administrative services without depository or lending powers — grew their assets under management by 15.5% in 2023, the fastest rate of any segment.
That headline number reflects more than market performance. It signals how the wealth management and fiduciary sectors are evolving in response to client expectations. This growth among NDTCs highlights how diverse client needs are reshaping the industry’s structure.
From integration to independence
To understand why NDTCs are growing, it helps to look at a broader pattern already visible across wealth management.
Over the past two decades, financial advisors have steadily migrated away from large wirehouses and toward independent RIA models, seeking the freedom to customize solutions and form their own professional networks.
That spirit of independence has now entered the fiduciary world.
“We’re the unbundled approach in the fiduciary and trust world,” said Brian Simmons, Co-Founder and Chief Trust Officer of IconTrust, a Nevada-based non-depository trust company. “By the time clients get to us, they already have a financial advisor they like, a CPA they trust, and an attorney who’s guided them for years. They want a fiduciary who plays well in that sandbox.”
IconTrust has grown to over $8 billion in assets under administration in just five years of existence.
That “sandbox” model wherein the trust company acts as an independent fiduciary working alongside existing advisors is one reason NDTCs are flourishing. They fit neatly into a world where wealth management is increasingly modular.
Rather than bundling everything under a single institution, more clients prefer to hand-select specialists — advisors, attorneys, CPAs, and fiduciaries — each serving a specific role. NDTCs operate comfortably in that environment, providing administration and oversight, often without managing assets or selling products.
Independence meets modern expectations
Still, independence alone doesn’t explain the growth. NDTCs are also benefiting from changing generational attitudes toward wealth, control, and trust planning.
Simmons noted that many of IconTrust’s clients are first-generation wealth creators — entrepreneurs and business owners who built their own success and want to remain actively engaged in managing it.
“I’ve yet to meet a successful business owner who isn’t a little bit of a control freak,” he said. “They want to stay part of the process, not hand everything over and walk away.”
That preference for involvement and transparency is reshaping how fiduciary relationships are built. Rather than deferring entirely to institutional oversight, clients increasingly seek structures that let them remain informed and influential while ensuring professional compliance and continuity.
At the same time, many advisors and attorneys prefer to retain their client relationships even after trust formation. NDTCs make that possible, functioning as neutral administrators rather than competing service providers.
In this sense, NDTCs thrive in markets where clients and professionals value choice, collaboration, and flexibility.
But that doesn’t make the traditional bank-affiliated trust model obsolete. For some families, especially those who value a single point of contact, integrated banking, and investment management, full-service institutions remain attractive.
The market isn’t shifting from one model to another; it’s broadening and growing to accommodate both.
Redefining the fiduciary value proposition
Another area where NDTCs are innovating is in pricing and structure.
Some have moved away from traditional asset-based fees toward flat or tiered administrative pricing, which can align better with their limited discretion over investment assets.
IconTrust was among the first to take this approach.
“If we don’t manage money, why are we charging an asset-based fee?” Simmons asked.
That model resonates with estate attorneys and RIAs who refer clients to independent fiduciaries. Yet again, the appeal is situational. Clients with complex portfolios may still prefer the infrastructure of large bank trusts.
The success of both models depends on knowing which clients they serve best.
Scaling responsibly
One of the most telling measures of NDTC momentum is how effectively firms like IconTrust are scaling while maintaining service quality.
IconTrust’s five-year trajectory has been steep — growing from its first account in 2020 to thousands today — yet Simmons says the firm’s foundational model “is holding.”
Their biggest challenge, he explained, isn’t attracting clients but hiring and training the right people to preserve responsiveness.
“The two biggest complaints we hear when clients leave other trust companies are responsiveness and employee turnover,” he says. “We can’t always have every answer immediately, but we can make sure every client knows they’ve been heard.”
That emphasis on communication and consistency mirrors what’s made the best bank trust departments successful for generations. It’s a reminder that while business models evolve, the human dimensions of trust — reliability, transparency, and stewardship — never go out of style.
Looking ahead: A diverse future
What comes next for the fiduciary space? Simmons foresees measured consolidation, particularly as private equity explores opportunities to acquire trust companies across multiple jurisdictions. “You’ll see firms try to build multi-state platforms,” he says. “But outside investors don’t always understand the culture of fiduciary work.”
That may create both opportunities and challenges. Consolidation could bring efficiency and geographic reach, but it risks diluting the personalized service that makes smaller fiduciaries appealing.
The more likely outcome is continued diversification.
This broadening spectrum of trust providers forms a richer, more adaptive ecosystem that meets clients where they are — whether that’s inside a regional bank branch, a national institution, or a specialized fiduciary office in Nevada.
In the end, every path leads back to the same foundation: clients who want confidence that their wealth, legacy, and values are being cared for — by someone who understands what matters most.
