June 20, 2023

How Wealth Managers can streamline the process of distributing structured products

Structured products appeal to wealth management firms all over the world for two reasons. Firstly, they allow advisors to offer clients valuable diversification, as they are not merely a delta one exposure to traditional asset classes like stocks and bonds. And secondly, they generate generous fees compared to other investment products, which can be collected upfront. 

The distribution model adopted by wealth management firms varies, but it typically involves a head office acting as a provider to individual advisors who sell the products to clients. But managing the relationship with advisors, especially for bigger firms, becomes complex and time-consuming, particularly when manual activities are involved, such as logging data on spreadsheets and keeping track of emails.

A tailored solution for wealth managers

Futora has developed a solution designed specifically for wealth management firms. It comes in two forms- a whitelabel platform, which the firm can rebrand, or connectivity via application programming interfaces (APIs) which allow Futora to push information to a wealth manager’s existing systems. Both options can be used by firms of all sizes, from those working with as few as couple advisors to those with dozens in their network.

Dive deeper: Explore how to access and distribute structured investments with Futora

From head office’s perspective, the whitelabel platform gives an overall view of the structured products sold by each advisor. This data presents the firm with a valuable source of business intelligence which it can use to manage risk and ensure compliance requirements are met. The platform also offers flexibility in the way head office structures fees. It can embed commissions (and choose whether or not to disclose them) in the products issued to advisors, who then charge their own commission to their clients.

The platform features an advisor portal which adapts to different workflows, allowing head office to determine how much it empowers its employees. For instance, an advisor can conduct their own research into products and then source live prices instantly (a process which usually takes at least a day without a tech solution). Alternatively, they can send a request to the investment team to provide product ideas and a quote. This flexibility extends to executing a trade.

How Futora empowers distributors to offer top-notch services and tools to their clients

The advisor portal also automates the process of lifecycle management: valuing the product so the advisor can provide clients with regular performance reports, issuing payments if the underlying asset produces an income and finally settling the investment if the product returns a profit.  

Both the whitelabel platform and the API solution can issue subscription-based or bespoke products. In the case of subscription-based products, head office can push exposure to a particular asset for advisors to sell to their clients. A bespoke product, on the other hand, is a personalised investment as it lets the client choose which asset they would like exposure to, for example shares, currencies or commodities. 

To learn more about Futora’s structured product solution designed specifically for wealth managers, arrange a demo today.

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