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Riskalyze Unveils Platform Enhancements, Docupace Announces Deal at Fearless Summit

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What You Need to Know

  • Discovery is a new Riskalyze feature using a quantitative engine to find the best securities for each client.
  • Discovery will be part of a free upgrade that will go live by Oct. 31, Riskalyze said.
  • Docupace’s acquisition of PreciseFP closed on Thursday, and terms of the deal were not disclosed.

Fintech Riskalyze unveiled several enhancements to its risk alignment platform, while Docupace announced the acquisition of automated data management platform PreciseFP, on Thursday at Riskalyze’s Fearless Investing Summit in Palm Springs, California.

The standout among the Riskalyze announcements was Discovery, a new feature the company said uses a quantitative engine to find exchange-traded funds, mutual funds and other securities that best fit an investor’s portfolio using a series of criteria that includes the Risk Number and Riskalyze GPA.

For Riskalyze Select and Elite users, Discovery will be part of a free upgrade that will go live by Oct. 31, the company said.

Discovery is “the intelligent way to search the universe of securities and find the perfect fit for your clients and their portfolios,” Riskalyze CEO Aaron Klein said during his keynote.

Other New Riskalyze Enhancements

The company had a “bunch of new innovation to share,” Klein said at the start of the presentation. The latest updates will “drive your productivity and success as an advisor,” he told attendees and those watching virtually, adding a vow that the firm will continue to innovate.

For instance, “starting next year, we’re bringing all of our tools for enterprise firms together into a brand new home office suite that we’re calling Command Center,” he said. It will serve as the “home base for enterprise firms who are leveraging Riskalyze technology with their advisors.”

The home-office platform now includes an all-new Alignment Dashboard that the company said will bring central visibility to risk objectives, compliance tools for sifting through a firm’s accounts to spot and correct issues, proposal oversight to visualize and document Regulation Best Interest (Reg BI) compliance on client and prospect-facing proposals, along with user management capabilities for firms.

“Many more” new features around data intelligence are planned for Command Center in the future, Klein said.

As part of a new Portfolios experience, meanwhile, the core hub of work in Riskalyze is getting what the company said was its “most significant upgrade to date.” The new experience is “about putting what advisors need right in front of them at all times,” it said. It is being made available as a free upgrade to all Riskalyze users.

Advisors can use Riskalyze’s core analytics dynamically by switching between analyzing a portfolio, an account or a model inside an account in real time. The new Portfolios also allows advisors to “drill down deep or zoom out to see the big picture, all on the same screen,” according to the company.

The new experience is also very fast, Klein stressed. Loading the average portfolio is now eight times faster and it handles portfolios with five times the complexity, according to Riskalyze.

More on this topic

There is also a new stress test available for advisors: the “2020 Pandemic Crash” stress test that Riskalyze said was built using historical data from the actual event.

Last, as part of Riskalyze Trading enhancements, the firm is building an Accounts Dashboard so advisors can see, search and adjust how they’re managing accounts across their books of business, the company said.

In 2020, Riskalyze Trading added tax optimization and automated tax harvesting loss. As a result, the average advisor using Riskalyze Trading’s tax intelligence saved $43,000 in taxes across their book of business, with one user saving over $800,000 for clients, according to the company. Advisors have used Riskalyze Trading to manage $23 billion in assets to date, it said.

Overcoming COVID Challenges

Klein also reflected back to the start of the pandemic in March 2020, noting: “The entire world was at peak fear” after it was announced that actor Tom Hanks contracted COVID-19. Right after that news, he told his team at Riskalyze that the company was “put on earth for this moment [and] it is our job to inject data and remove fear from how people make decisions.”

It was also “game time for the advisors we serve and, therefore, it’s game time for us,” he recalled telling his staff, adding: “Our job is pretty simple. We exist to stand behind great financial advisors and help them communicate, illustrate and make great decisions.”

“The advisors who set the right expectations with their clients from the start” were ready for the 33 days in the market we experienced last year right after the pandemic started, he said.

Docupace’s Latest Acquisition

Docupace’s acquisition of PreciseFP closed Thursday, a Docupace spokesman said Friday. Terms of the deal were not disclosed.

The addition “amplifies Docupace’s new account opening and client onboarding capabilities, while positioning the company for leadership across both the RIA and IBD segments of the wealth management space,” Docupace said.

Docupace was advised by Gibson, Dunn & Crutcher as legal counsel. PreciseFP was advised by 360 Venture Law as legal counsel.

The PreciseFP acquisition followed Docupace’s purchase of compliance and advisor compensation system jaccomo in May.

(Pictured: Riskalyze CEO Aaron Klein)