Finalytix: Facilitating Streamlined and Seamless Wealth Management

Finalytix: Facilitating Streamlined and Seamless Wealth Management

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While it is one thing to create or derive wealth, managing it is a whole different ball game, especially when the wealth in question is vast and diverse. Ultra-high net worth individuals (UHNWIs), family offices, and external asset managers (EAMs) know this well. Unstructured wealth information and poor banking/wealth advisory relationships can make wealth management a costly and obscure affair. Moreover, being less-informed and underequipped to manage wealth makes it difficult for these entities to evaluate the multitudes of products and services put forth by bankers and advisors. With fewer means and resources to help correlate the performance of services that can be availed to the fee being quoted, customers are often overwhelmed by the amount of information that must be processed to make sound financial decisions. Large amounts of granular data must be extracted, converted, aggregated, and reconciled from a complex set of assets to produce information that will help them monitor their portfolios and make better decisions.

The need of the hour is a specialized solution that can help consolidate and facilitate wealth management transparently. Finalytix, a portfolio analytics specialist, seeks to end the “information asymmetry” that renders wealth management a costly affair. Omar Rana, the co-founder, and director of strategy at Finalytix recalls an instance where a bank quoted the same financial product’s price to two UHNWIs with nearly 100 percent difference. Call it the bankers’ ability to negotiate a deal or a lack thereof by the counterparties (i.e. the clients ability to deal with the banker), but such differences in pricing shows a clear problem which translates to huge expenses for the client. For example, take the instances associated with the numerous transactions involving structured notes (SNs), which make up a significant portion of UHNWIs’ wealth holdings. Banks tend to have layers of fees on these transactions and it is known that they earn the most fees from SNs as the fees tend to be unclear. Finalytix strives to bring order to such opaque and chaotic wealth management scenarios. The company delivers a customized platform that consolidates wealth information for UHNWIs, family offices, and EAMs.

Finalytix can declutter the complexities associated with wealth management to relay easily digestible financial information to its clients. The company’s platform features portfolio management solutions, workflow management, customer relationship management, document management, reporting, and market data integrations. It can comb through a variety of asset classes, including complex liquid and illiquid asset classes such as alternatives, cash, commodities, derivatives, fixed income, stocks, fixed deposits, forex, insurance, mutual funds, structured notes, cryptocurrency, art, automobiles, jewelry, and real estate.

Facilitating Wealth Management and Consolidation

Finalytix helps clients minimize overhead expenses by tracking and monitoring financial portfolios while reducing the information asymmetry on fees on portfolio/investment-related transactions and saving-time organizing and streamlining disoriented wealth information to improve wealth management decision making. Finalityx’s platform displays transparent (and therefore benchmarked) pricing of financial products. Its data analytics capabilities help identify appropriate risk or reward associated with each product, facilitating targeted discussions on improving portfolio performances. Moreover, the platform allows users better to identify exit or entry opportunities for financial portfolio transactions.

“Our platform consists of a four quadrant framework that generates automated insights for our clients that empower them to maximize the performance of their portfolios,” mentions Omar. As a real-time platform focused on structured notes investments, the company’s Structured Notes (SN) Marketplace provides clients with a bird’s eye view of all information held on various structured notes. It allows clients to price their own SNs and get indicative pricing from issuers worldwide on a real-time basis. “Comprehensive Analytics is our next generation analytics platform where we have introduced a more comprehensive suite of analytics which moves beyond descriptive analytics to algorithmic, predictive and prescriptive analytics on client portfolios,” adds Omar.


During the start of the Pandemic, we saw a 500% increase in calls to our support teams. finalytix emerged as the first line of defense for our Clients as we provided them a consolidated view across all their financial advisors


Finalytix Intelligent Document Processing (IDP) is the third quadrant in its suite of offerings, which serves as the comprehensive solution to read, extract, and digitize financial documents such as account statements, advice, and term sheets. The solution enhances the efficiency of populating financial data and replaces manual data entry for High Net Worth families where their bank statements from multiple financial institutions in boxes, added Omar. This helps clients drill deeper into their financial affairs and demand more “granularity” in terms of, say, the fees structured issued by banks.

The fourth quadrant of Finalytix’s offering pertains to practical education, something that many clients lack in varying degrees. Be it for family patriarchs or their advisors, Finalytix has built customized content to help clients understand everything from basic financial terms to the complex nuances associated with their wealth and portfolio transactions. “Our goal is to continue to enhance our course content and to translate it into various languages based on the client’s needs,” mentions Omar.

In effect, Finalytix’s platform empowers clients by enabling them to easily view their financial portfolio, which would be briefly organized into different asset classes, industries, and sectors. Among other capabilities, clients can view their absolute or annualized returns on equity. They get to enjoy automated real-time reports on their top holdings. Clients can assess their assets’ performance managed by the respective institutional advisors and correlate it to the fees being paid, identifying underperforming advisors. Also, clients get to segment and visualize their portfolio by assets and liabilities, asset class, industry, top holdings (asset and asset managers), best and bottom performers, transaction cost, interest charge, and custody fees, to name a few. Clients can seamlessly access and view the whereabouts of their global portfolio, which in some cases involve assessing banking relations with more than ten banks on a “single screen.”

From an EAM’s perspective, partnering with Finalytix helps them optimize their performance with their basket of clients. They get to showcase the sleek capabilities of the Finalytix platform, which can be leveraged to win new clients with low overhead costs.

Exemplary Success Stories

The success stories (and savings) that Finalytix has generated for clients are aplenty. Omar shares one instance where a high nine-figure family office, after onboarding their data on the finalytix platform, was able to recognize potential savings of two million dollars by removing unnecessary fees charged by various banks.

What’s pleasantly surprising is that they could spot this opportunity within minutes of adopting the platform.

Finalytix embraces the idea of a customized client onboarding process. “We meet clients and introduce them to our platform by explaining each feature on it. During the process of engagement, we take the time to identify and understand our clients’ challenges and pain points,” mentions Omar. The company then proceeds to take sample data from their clients to demonstrate the platform’s capabilities. finalytix then enters into an engagement model based on an annual subscription fee that aligns with clients’ requirements and preferences .

"We meticulously focus on our clients, which drives our Innovation Lab (IL) with a pot of ideas originating from client discussions. The team filters the ideas before we begin to experiment with a handful of the ideas to develop internally which then get added to a formal workstream to enhance our platform"

“Especially at the start of the Pandemic, Finalytix emerged as the first line of defense for our clients as we provided them a consolidated view across all their financial advisors (which included Private Banks). We saw a 500 percent increase in calls to our support teams at that time. This drove our decision also to develop a proprietary BOT which could help assist our clients with managing their data inputs and queries,” says Omar.

ARoadmap that Centers around Clients’ Needs

As a company founded in Silicon Valley in 2015 and run by a highly qualified team of experts, Finalytix’s attention to clients’ demands is a testament to their people’s combined experience. The team comprises experts in Financial Services (Asset Management), Analytics, Strategy, and Technology, totaling combined know-how of over 80 years. Today Finalytix has over $2B in Assets Under Observation (AUO) across dozens of clients covering various markets. In the past six months, the company has expanded to Dubai, United Arab Emirates, and Singapore. Their location in Dubai allows them to also service MENA and European based Clients. Omar said one of the main reasons why Finalytix has set foot in Asia is the double-digit wealth growth especially in the ASEAN region in Southeast Asia. “In Singapore, we can tap into the pool of talents available for Finalytix. We are also able to be geographically closer to our APAC based clients,” mentions Omar.

As a technology-driven organization, Finalytix believes in consistent R&D efforts to ensure that they can always keep up with clients’ changing needs. “For example, it’s through our client interactions we understood the need for SN Marketplace and embarked on a considerable investment into creating a robust marketplace to assist our clients in accessing the $2T SN market,” mentions Omar.

Having carved a unique niche in the space, Finalytix plans to work closely with clients to develop solutions that best fit their needs. “We meticulously focus on our clients which drives our Innovation Lab (IL) with a pot of ideas. Our team filters the ideas before beginning to experiment with a handful of them. We then finalize the ideas to take to the next level. Once we identify an idea that can integrate with the core objective of positive impact for our clients, we put forward an aggressive execution which mobilizes our technology team to begin executing a development plan,” concludes Omar.

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Top 10 Portfolio Analytics Solution Companies - 2020

Company
Finalytix

Headquarters
Redwood City, CA

Management
Omar Rana, Co-founder, and Director of Strategy & Analytics

Description
Finalytix enables clients to minimize overhead expenses needed to track and monitor financial portfolios, reduce the information asymmetry on fees pertaining to portfolio/investment-related transactions, and save time with sorting (making sense of) disoriented wealth information