BondIT Integrates Bond Portfolio Solution with FIIG Securities

Fixed income portfolio platform BondIT has initiated a partnership with FIIG Securities. Through the agreement, FIIG will leverage BondIT’s bond portfolio solution for relationship managers.

Australia-based FIIG offers fixed income services for 6,000 clients, managing more than $7.6 billion (AUD 10 billion) in assets. The company will bring BondIT’s bond portfolio solutions to its core investment management platform, SimCorp Dimension, allowing front office users to leverage the technology for new portfolio construction, investment idea generation, relative value analysis, portfolio monitoring, and portfolio optimization.

In the press release, John Prickett, Chief Operating Officer at FIIG Securities described how more investors are interested in the diversification that corporate bonds can bring to their portfolios and that this spike has increased the demand for fixed income and corporate bonds. He added, “The BondIT software will further enhance our offering, pairing the knowledge of our expert team with the latest technology to identify more fixed income opportunities for our clients and help them maximize their investments.”

Powered by machine learning algorithms, BondIT’s tools empower advisors to automate the optimization of fixed-income portfolio creation and management. The technology allows individual investors to select 12 different constraint dimensions to personalize their portfolio. BondIT leverages these data points, combined with AI, to create algorithms that offer flexibility in optimizing risk and returns in non-linear, multi-dimensional portfolio selections.

BondIT’s COO Eran Nachshon debuted the technology at FinovateFall 2016 in New York. The company added $4 million to its Series B round last week, bringing its total funding to $18.2 million. BondIT is headquartered in Herzliya, Israel and was founded in 2012.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

BondIT Raises $4 Million in New Funding, Adding to Series B

With $4 million in new funding, BondIT has added to the Series B investment it announced last fall and taken the round’s total to $18.2 million. St. Louis Business Journal reported this week that the fixed income portfolio management platform provider plans to use the capital for product development among other initiatives.

The company’s Series B round has been led by major investor Fosun Group, a division of Fosun International Limited, a Hong Kong-based investment holding company. When the investment in BondIT was initially announced last fall, Fosun Chairman Guo Guangchang said that BondIT’s technology “compliments (its) own financial ecosystem” and will enable wealth managers to upgrade their solutions with disruptive technology. The Group also said the investment reflected a commitment to the Israeli market.

BondIT uses machine learning algorithms and data science to enable fixed income advisors to make superior recommendations, improve client engagement, manage risk better, speed trade execution and meet compliance regulations easier. The platform improves productivity by automating portfolio construction, optimizing returns tailored to the individual customer, and enhancing analytics, and risk monitoring.

Founded in 2012 and headquartered in Herzliya, Israel, BondIT demonstrated its fixed income portfolio management platform at FinovateFall 2016. The company began the year leveraging its strategic partnership with Fosun Group and relationship with Chinese financial data provider Wind to expand its coverage of China’s $7+ trillion interbank bond market.

In January, BondIT partnered with IBM, choosing the company’s ILOG CPLEX Optimization Studio to enhance its fixed income portfolio services. “By harnessing the ILOG CPLEX Optimization Studio tool within our framework, our platform can find the optimal solution within the constraints,” BondIT Chief Scientist Dr. Hillel Raz said. “If a perfect solution is not feasible due to the combination of constraints and market conditions, it can relax constraints to provide the closest fit for any set of portfolio requirements.”

The fact that the technology is cloud-based is also a major plus enabling the company, in the words of BondIT CTO Amit Godel, to scale as required to meet customer needs, as well as to “provide platform enhancements immediately.”

“The main advantage of the IBM technology for us as a startup was fast time-to-market, as well as its ability to handle many different types of variables and objectives, control numerous parameters, and handle infeasible problems,” Godel said.

Etai Ravid is BondIT founder and CEO. Check out our profile of the company featuring a Q&A with Ravid.

Finovate Alumni News

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

BondIT Closes $14 Million in Funding

Advisory tools company BondIT landed $14 million in funding from China-based Fosun Group. The investment is a strategic one– Fosun is now a major shareholder of BondIT and has gained representation on the Israel-based company’s Board of Directors. When combined with an earlier seed round, this brings the company’s total funding to $14.3 million.

BondIT’s Chief Revenue Officer Adrian Gostick, said that the funds will have a “significant, positive impact” on the business. The company will use the investment to accelerate its expansion into the U.S., which, Gostick notes, is the world’s largest fixed income market. Gostick added, “…riding on Fosun’s global financial network, BondIT is committed to becoming a leader in the market to greatly improve the efficiency of the financial sector.”

Powered by machine learning algorithms, the company’s tools empower advisors to automate the optimization of fixed-income portfolio creation and management. Each individual investor selects 12 different constraint dimensions to personalize their portfolio. BondIT leverages these data points, combined with AI, to create algorithms that offer flexibility in optimizing risk and returns in non-linear, multi-dimensional portfolio selections.

Above: BondIT’s COO, Eran Nachshon, demos at FinovateFall 2016

Etai Ravid, Founder and Chief Executive Officer of BondIT said, “The long-term vision of BondIT is to bring significant efficiency to the global bond markets through the application of artificial intelligence and data science, and help our customers gain a competitive advantage through increased productivity and better client centricity.

Founded in 2012, BondIT’s COO Eran Nachshon debuted the technology at FinovateFall 2016 in New York. We featured the company, along with an interview with Ravid, in a blog post last year. BondIT was also highlighted in our round-up of top B2B wealth tech players.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Top Business-to-Business Wealth Tech Players

wealthtech4

If you’ve been following our series on wealth tech, you’ve seen our analysis of the industry as a whole, a review of the top trends, and an examination of B2C wealth tech players.

Our wealth tech coverage continues this week with a review of business-to-business (B2B) players in the wealth tech space. These are companies that cater directly to banks, advisors, or brokerages, instead of offering products or services directly to consumers. B2B wealth tech is a large category, so I’ve sub-divided it into four digestible groups and listed my top picks for each category. Since category sizes vary, the number of selections also varies.

Alternative investment services
These are platforms that help advisors connect clients with unconventional investment types, such as private equity, hedge funds, futures, real estate, etc.

Screen Shot 2017-01-19 at 11.44.57 AMEquityZen’s EZ Institutional lets advisors give clients access to a diverse asset class

Technology for advisors and brokerages
These are tools available via API, SDK, or web interface to help advisors compete with robo advisors by allowing them to invest with less bias, increase client communication, scale operations, find new clients, and more.

Screen Shot 2017-01-19 at 11.40.41 AMTrizic offers advisors their own digital tools to compete with robo advisors

Non-U.S. B2B investment and advisor technology
Similar to the above category, these companies offer tools for advisors outside of the U.S.

Screen Shot 2017-01-19 at 11.30.52 AMmeetInvest helps advisors invest like world-renowned market experts

News and Information Companies
These are online platforms, APIs, or SaaS offerings that provide advisors market information, show them trending news, or connect businesses with market data to power their own products.

Screen-Shot-2016-10-31-at-3.22.22-PMForwardLane’s dashboard acts like a private research analyst for advisors advisors, helping them stay current on new trends and funds

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This post will be updated throughout the day as news and developments emerge. You can also follow alumni news headlines on the Finovate Twitter account.

Finovate Debuts: BondIT Helps Relationship Managers Focus on the Relationship

screen-shot-2016-12-06-at-11-06-06-am

BondIT launched with the intention to build and improve fixed-income portfolios. The Israel-based startup’s platform helps advisers construct bond portfolios that are tailor-made and optimized for every client.

In his demo at FinovateFall 2016 COO Eran Nachshon began by explaining the problems BondIT seeks to fix. First, there are more clients, second, clients are seeking more personalized treatment, and third, regulators require an audit trail. “That’s where BondIT comes in,” Nachshon said, “with a hybrid approach that appreciates peoples’ strengths in forging relationships but empowers them with machine learning, data-driven capabilities to construct bond portfolios that are optimized and personalized for each and every client with a clear audit trail. And we do that in two minutes.”

By enabling construction, reallocation, and re-balance of optimal bond portfolios, BondIT helps advisers improve portfolio-management efficiency so they can focus on their client relationship.

Company facts:

  • $6.5 million in funding
  • 25 employees
  • In contracts with several tier 1 banks
  • Founded in 2012
29691687526_0302535a5a_kBondIT COO Eran Nachshon demoed at FinovateFall 2016 in New York City.

aaeaaqaaaaaaaaikaaaajdgxowywmtflltyxmdatngviny05ywfjlty3nte1nzdkytlizg-1After FinovateFall, we spoke with Bondit CEO Etai Ravid to learn more about the company and its future plans.

Finovate: What problem does BondIT solve?

Ravid: What we’re ultimately solving is lost bond sales. We want to transform the inefficient processes that relationship managers (RMs) currently utilize into a simple-to-use, data-driven and customizable solution.

Here’s how BondIT is transforming the client-RM relationship in fixed income:

1) We improve portfolio management efficiency by enabling the construction, reallocation and re-balancing of optimal bond portfolios in a few minutes.
2) We drive sales by empowering relationship managers and trading desks with personalized and optimized investment recommendations.
3) We improve client’s satisfaction by providing on-demand, timely and comprehensive reports.

To achieve this, we have developed some of the most advanced, proprietary machine-learning algorithms in fixed income and then present it in an intuitive interface to users.

screen-shot-2016-12-07-at-4-35-42-pm(above) Optimized portfolio construction
screen-shot-2016-12-07-at-4-38-06-pm(above) Constraints selection

Finovate: Who are your primary customers?

Ravid: In general, people who can benefit from our product are financial advisers, relationship managers, and all other professionals whose role is to help people invest their money in a financially prudent way.

Strategically speaking, we’re currently targeting private banks or private wealth arms of large financial institutions and wealth managers, since most AUM is managed by private bankers and wealth managers. BondIT offers material business value-add capabilities to increase AUM and trades.

Finovate: How does BondIT solve the problem better?

Ravid: The problem, to iterate, is lost bond sales. Every time a client calls a bank and has to wait several days to receive an answer, or receives a one-size-fits-all reply, translates into another lost trade, and another dissatisfied client much more likely to migrate to another, nimbler competitor.

BondIT solves this problem better by arming the entire chain of people interacting with clients with a fast (90 seconds); intuitive (15 minutes of training required); tailored (every portfolio is different); powerful (machine-learning) platform. Furthermore, it allows the advisers to proactively engage clients by alerting them to changes in the portfolio that prompt changes (re-balance) which will benefit the client, greatly enhancing the probability for the triple win: bank is happy (more trades); adviser is happy (seems proactive); and client is happy (better portfolios).

bondit3Portfolio analytics and management

Finovate: Tell us about your favorite implementation of your solution.

Ravid: The following is an excerpt from a user, and it shows how our solution works hand in hand with relationship managers to improve outcomes for all.

On Monday morning, I got a call from a prospective client, asking to hear about what our bank has to offer, as he has heard mixed reviews. Instead of going into the usual spiel (unparalleled research, best client service etc.), I told him about a new software that instantly imports and improves portfolios. He bites, and tells me his 12 positions over the phone.

I punch them into BondIT, hit the “Improve Me” button and chat him up about his goals for a minute and a half. BondIT found a way to enhance his YTM by 70 basis points while maintaining his risk. He was so surprised by the prompt response and excess yield that he set up a face-to-face meeting. Long story short, I converted a $3 million client in a few minutes.

Finovate: What in your background gave you the confidence to tackle this challenge?

Ravid: I came from a finance background with a master’s degree in finance and had professional experience in portfolio management and equity valuation.

I derive my confidence from my family, as I’m a third-generation entrepreneur. This firsthand experience, coupled with my education, instilled a deeply seated belief that it’s always possible to succeed in creating a better way to do things.

Finovate: What are some upcoming initiatives from BondIT that we can look forward to over the next few months?

Ravid:

1) BondIT is working closely with several leading fixed income/financial platform providers on synergetic collaboration. This will complete the advisory service circle from ideation to execution.

2) BondIT will continue its global expansion, with a particular focus on growth in the U.S. and Asian markets.

3) BondIT will be introducing an even more advanced analytics solution, to include investors’ behavior-based analytics; advanced predictive and descriptive analytics algorithms; and some surprises we can’t reveal yet—stay tuned!

Finovate: Where do you see BondIT a year or two from now?

Ravid: We envision BondIT assisting thousands of fixed-income advisers and managers in delivering a superior customer experience, and as a result, enjoy a boost in sales.

BondIT will also be integrated into leading execution/information platforms, creating analytical recommendation as a part of completely friction-less flow.

Ultimately, we want BondIT to be seen as the gold standard when it comes to smart recommendations and data-driven portfolio management for fixed-income investment.


Here’s BondIT’s FinovateFall 2016 demo video. COO Eran Nachshon showcased the platform in New York City:

FinovateFall Sneak Peek: BondIT

Screen Shot 2016-08-15 at 1.05.57 PM

FF2016-Logo-wdate-largeA look at the companies demoing live to 1,500+ fintech professionals on 8/9 September 2016. Register today.

BondIT drives fixed-income sales by empowering advisers with data-driven recommendations generated by machine-learning algorithms. It is proven to increase revenues and client satisfaction.

Features:

  • Create algo-optimized, personalized portfolios instantly
  • Rebalance and improve portfolios with various optimization targets: sharp, yield, or risk
  • View advanced analytics and set intelligent alerts

Why it’s great
Optimization solutions for equities can, for the first time, be applied to bonds. BondIT is your way to harness powerful machine-learning to boost your sales!

Screen Shot 2016-08-15 at 2.06.07 PM

Presenter: Eran Nachshon, Chief Operating Officer
Nachshon served seven years as an IDF computer officer and seven years at Barclays as a trader and technology project manager. He holds an MBA from New York University.
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