Fintech Platform for Structured Products

*Original air date 9/12/19

Welcome to nav sector a toxin rehearsed jill malandrino global markets reporter at nasdaq joining me at the market site in times square we have tim bonacci he’s the ceo of luma financial technologies we’re going to talk about fintech platform for structured products and how financial advisors can make use of them it’s great to have you with us at market site thanks

So much for joining me great to be here thanks structured products you’re starting to see them being used in portfolios more and more absolutely i think the use of structured products in managed portfolios is one of the fastest growing segments in the market and i think it it makes perfect sense if you look at one of the demographics of the market other aging and

Also the current market a lot of volatility recently interest rates that remain to be very low so you’re seeing advisors use them to put them into a managed portfolio and be an active part of that of that clients position and i would imagine that fintech is making it easier for advisors and really transforming as you it said before the way the structured product

Industry works absolutely i think that’s one of the biggest sea changes in the industry i think we almost at least in the united states reached almost capacity in the market because wallets of could be a very good product for end investors providing some level of risk protection but still exposure to various markets the one challenge it can be a little more manual

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To use it just screams technology so the technology makes it much more easy for advisors to build constructive design products for their clients portfolios and then manage them while they’re in the portfolio as well as adding a lot of transparency which is always good in the financial market right now let’s learn more about luma fintech what are some of the key

Features what’s the framework how are you helping advisers create these structured products there’s it really is designed to help adviser all the way through the process as the management client’s portfolio from initial education and testing on the product and how they work because they can be tied to pretty much any type of asset class market environment whether

That be equity or come out of these etc so there’s education modules pieces to it there’s also a very robust function to be able to design a product as you know not all not how clients are created equal their portfolios are not the same so be able to design a structure that actually matches the givens clients risk tolerance where they’re needed exposure is time

Line etc that’s a very good component to really look across the industry and design it and create that for them next the next component so is training you can create it component is actually to trade the product in into the clients portfolio which pushes right into the clients clearing firm and lastly an almost most importantly this may be a three-year product a

Four year product how are you getting information and managing it along the lifecycle of that product so luma what it really does is automate the entire lifecycle from the very early parts to the very ending parts of a product when it’s maturing and all the different corporate actions that may be going on with some of the investments there what sets luma fintech

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Apart from your competitors we we always have been and always will be an extremely objective platform we’re a buy side focused platform there are one or two platforms out there that are a little bit more sell-side created by the manufacturer of the product we so we are very objective in our in our platform every single issuer’s product is on it they’re all treated

Exactly the same so it can really make sure we’re matching the suitability for that end client and to suitable i mean customization i joke sometimes but i’ve never seen two investment firms that work exactly the same way they all have different product approvals customization compliance parameters whatever they be so we do not have a square peg round hole model it

Is very configurable for a given firm an advisor to match what their needs does that that has proven to be extremely valuable in the marketplace we’ve seen client growth pretty rapid this year we’re adding new investment management firms and new broker dealers every day that they’re already using the product set but then using our technology is making it much more

Facilitated to expand that market form i’m sure your clients appreciate the customization it feels like technology so democratize these days and it’s not one size fits all so an imagine that’s a key feature for them it absolutely is i mean in the us market in from a size 10 but the us mark is about 65 70 billion dollars in structured products but if you look at

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Europe is well over 300 asia’s over 400 our market should be much larger but i think we’ve reached some capacity because it’s been a very manual process so being able to match a given firm who’s already selling them and link into their processes and their approval processes and just make the process much more easy when you look at fintech you do one of two things

You either increase efficiency or you increase sales i think we actually do both we actually could make it much more efficient and actually make it easier for the adviser to use these products in client’s portfolio all right tim thanks so much for joining us at market sight thank you and thank you for joining me on trade talks i’m jill malandrino global markets reporter at nasdaq

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Fintech Platform for Structured Products By Nasdaq #TradeTalks