Darryl Lyons, CEO, PAX Financial Group
In an interview with Invest:, Darryl Lyons, CEO of PAX Financial Group, shared how San Antonio’s family-focused environment allows them to thrive, steps taken to protect their clients and educate the general populace about cybersecurity threats, and how they plan to continue building community in the San Antonio-Austin corridor.
What makes San Antonio an ideal location for PAX Financial Group?
It is the people here who tend to value family and place it in its proper context relative to ambition. It is not as though ambition is bad; rather, it is just that family needs to coexist with business. San Antonio fosters that balance well, and the community supports it. Those are the types of people we like to do business with, so the environment aligns with the firm’s core values quite well.
What have been some key milestones or achievements for the firm for the past 12 months?
A couple of achievements come to mind. Like many others, we started a podcast, which has been gaining momentum. It is called “Retire in Texas,” and its intent is to educate the community on salient economic topics in a digestible way. We have surpassed 25,000 downloads relatively quickly, which is encouraging given the community feedback.
Another milestone involves our advisors. We have 10 advisors, plus a 401(k) specialist and a group health insurance specialist, totaling 12 advisors. Each of them has secured a position on a nonprofit board. This allows us to extend our influence to these nonprofit communities in several ways, such as providing leadership on the boards, encouraging and influencing our clients to direct some of their giving toward these boards, and contributing directly as a firm. We call this initiative “PAX Impact,” and last year, we quantified our giving influence at over $1 million to various nonprofits. This was a truly encouraging group effort.
Lastly, I would like to express my gratitude for our team’s dedication, as much of what we have accomplished is due to our passion. While I provide vision and strategy, it is our team that does the heavy lifting. It truly is a collaborative effort, and I am deeply grateful for their contributions.
What are some key trends you are observing in the broader financial services sector?
From a stock market perspective, the impact of artificial intelligence has been significant. It carried the market to positive returns, with back-to-back gains of 20% in two consecutive years. However, this optimism did not translate evenly across the board, as many areas of the market still face uncertainty. Moving forward, I believe other sectors will begin to experience growth, momentum, and renewed optimism. That is what excites me as we move forward in 2025.
Which sectors do you see the most opportunity for growth, especially under the new administration and amidst ongoing economic challenges?
Healthcare and housing are two areas that stand out immediately for me. Healthcare is particularly challenging due to an aging population and the need for sufficient resources to support it. Reducing regulatory burdens could provide momentum, such as addressing the lag in Medicare and Medicaid reimbursement for effective treatments. This administration seems focused on closing that gap, which would positively impact the market.
The housing market also requires attention. Improving regulatory efficiency can facilitate the development of homes and help address the shortage. There is a strong focus on ensuring that younger generations, such as Gen Z and millennials, can access affordable housing. I believe the administration will prioritize this, ensuring first-time homebuyers have more opportunities.
Among the services you provide, which sectors are generating the most demand, and are there new sectors you are tapping into?
Every day, approximately 10,000 people turn 65, so we continue to see high demand from individuals transitioning into what we call their next chapter. We prefer the term “pivot” over “retire” because retirement implies the disposal of an asset no longer useful. Instead, we see people pivoting into something new, and we have a thoughtful process to guide them through this transition. We also see increasing opportunities in the small business sector. We work closely with entrepreneurs and small business owners, helping them transition to their next chapter. This often involves succession planning, whether it is transferring the business to the next generation or mapping out how a buyout translates into personal financial planning. Business succession planning is a growing area for us, and we are deeply invested in ensuring these transitions are successful.
How are you incorporating technology and artificial intelligence for operational efficiencies and client service, especially amid growing cybersecurity concerns?
With a client’s permission, we use secure, AI-enabled dictation services to support note-taking during meetings. These tools help us capture details efficiently, allowing advisers to stay fully focused on the client while still maintaining clear and compliant documentation. Clients also benefit by receiving comprehensive notes that make it easier to review and process the conversation afterward. We know our discussions often cover a lot of information, and these notes provide a helpful resource to revisit the details with confidence.
We’re also piloting several AI solutions, including a tool that helps us review legal documents such as estate planning documents. It generates a visual overview of the flow of assets, giving us a clearer understanding of one’s estate plan. While we are not attorneys and do not provide legal advice, this technology strengthens our collaboration with clients and their attorneys, ensuring alignment and helping confirm that the client’s wishes are accurately reflected in both legal documents and the financial plan. It also enables us to identify potential areas of tax efficiency and open the door to more informed planning discussions, such as gifting strategies.
On the cybersecurity front, we have to be extremely vigilant. I hosted a ten-episode podcast called The Dark Side of Finance, where I discussed the tactics of con artists in the marketplace today. For instance, I highlighted a practice known as “pig butchering,” where fraudsters lure victims, often elderly individuals, into financial scams, ultimately stealing their money. These groups, sometimes based in Eastern Europe or Southeast Asia, use artificial intelligence to execute their schemes.
As advisers, we are constantly on alert for anything that might harm our clients. We employ a third-party cybersecurity firm for regular testing and monitoring, but we also emphasize staying informed and proactive to protect our clients from potential threats.
Are there specific partnerships or collaborations you are pursuing to enhance financial education within the community?
We have several initiatives in this area. Many of our team members are active in the Financial Planning Association (FPA). Personally, I am involved with C12, an international coaching organization. I have also spoken at various universities, including an upcoming engagement at St. Mary’s University. Additionally, the local news station, News4, frequently contacts me to provide educational insights on financial topics. This occurs almost daily, and we cover both complex and basic financial topics to educate the community effectively.
How would you describe the workplace culture at your firm?
Our workplace culture is rooted in several key values. One of the ways we foster a strong culture is by sharing equity. Over half of our employees hold some form of equity in the firm, which encourages them to take ownership of their roles. They treat the firm as their own, which is evident in their actions, even in small gestures like picking up a paperclip from the floor.
We also emphasize our core values, encapsulated in the acronym TRECK: Teamwork, Respect, Enthusiasm, Constant Improvement and Kindness. These values are not just displayed on a wall but actively practiced. For example, respect is particularly important. While our organization is grounded in Judeo-Christian values, we respect everyone’s unique life story, whether they share our faith or not. This principle extends to our clients and vendors, ensuring a psychologically safe environment for all.
Our values guide how we interact with clients, ensuring they feel respected and supported. We strive to create a culture of trust and mutual understanding, which is essential for maintaining long-term relationships.
What are your top priorities for the next two years, and what is your outlook for the financial services industry in San Antonio?
I feel a deep sense of responsibility to guide our clients toward prudent financial decisions. This stems from my personal background of growing up without financial security and understanding the generational impact of sound financial planning. Our role in the community is vital, and we take it seriously. Many of our clients have trusted us for over 20 years, and we view it as a privilege to serve them. Looking ahead, I see tremendous opportunities driven by demographic trends. As people age, the need for financial guidance will continue to grow. Additionally, the influx of people moving to the San Antonio-Austin corridor, whether from the North or South, presents further opportunities for growth. Our goal is to become a household name in this region, including areas like San Antonio, Boerne, and New Braunfels, with potential expansion into Austin.
