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.

Finovate Alumni News

On Finovate.com

  • Stay Current with Financial Market Changes Courtesy of RateSeer’s Denoti.
  •  BondIT Closes $14 Million in Funding.
  • Stronger Together: Fintechs, Techs, and FIs Collaborating on Cybersecurity.

Around the web

  • Check Point teams with LG to secure IoT devices.
  • Irish Tech News features Pendo Systems.
  • ACI Worldwide to provide access to all instant payment schemes in Europe.
  • Uniken CEO Bimal Gandhi quoted in USA Today special supplement on the future of digital security.
  • VP of Risk Management for WePay John Canfield talks about fraud prevention for SMEs.
  • Inc.com features Flybits in an article on real-time personalization and app design.
  • Kasasa earns finalist spot in the Ethics in Business & Community Awards.

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

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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

Finovate Alumni News

On Finovate.com

  • “Finovate Debuts: BondIT Helps Relationship Managers Focus on the Relationship”
  • “Finicity Scores $42 Million Series B in Round Led by Experian
  • “Credit Karma Launches Free Tax Filing Service”

Around the web

  • Vasco to power multifactor authentication for BankMobile.
  • Engadget interviews Bo Lu, CEO of FutureAdvisor.
  • Micronotes launches Enterprise 4.0 platform that helps convert digital banking traffic into personal conversations and sales.
  • FIS establishes partner network for early-stage fintech companies.
  • Let’s Talk Payments interviews Stuart Lacey, Trunomi CEO and founder.
  • Blackhawk Network to integrate gift cards, loyalty, and rewards into Apple Pay.

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.
LinkedIn

Finovate Alumni News

On Finovate.com

  • TransferWise Launches TransferWise for Business to the Public
  • RealtyMogul to Raise $50 Million with New REIT, MogulREIT I

Around the web

  • ACI Worldwide integrates Ethoca Alerts into its UP eCommerce Payments solution.
  • Trulioo announces enhancements to the global AML watchlist capabilities of its GlobalGateway platform.
  • Realty Mogul launches REIT investments.
  • Two credit unions select Fiserv’s OnCU for core account processing.
  • Payoneer releases automated tax-form service to its mass payout offering.
  • D+H brings on 100+ new lenders to its MortgagebotLOS solution after signing reseller agreement with DocMagic in October of 2015.
  • FT.com looks at Quantopian in a feature on DIY algorithmic trading.
  • Jumio VP of Product Philipp Pointner writes about digital ID verification in AltFi News.

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.

Ready for a Sneak Peek? How to Best Prepare for FinovateFall

StageIMG

To give you a sense of the many new ideas at the upcoming FinovateFall conference in New York, we’ve launched our Sneak Peek series. Eight companies are featured each week leading up to the 8/9 September event (tickets now available).

In the meantime, here is a quick summary of the 66 announced companies (six more are in stealth mode). It’s a lot to take in; pace yourself!

  • Agreement Express offers an an end-to-end platform that helps traditional financial institutions automate labor-intensive parts of the customer onboarding process to remain compliant while quickly opening customer accounts.
  • Aleo’s marketplace uses e-procurement, e-commerce and supplier financing bundled in a single open platform to offer small and medium enterprises an online procure-to-pay solution.
  • AutoGravity’s mobile-first digital marketplace helps digitally minded customers, looking to buy and finance a vehicle, circumvent the inefficiencies of the auto-financing process by leveraging the full potential of their smartphone.
  • Avoka’s customer-acquisition platform integrates multiple fintech services to help banks, wealth managers and insurers use mobile and digital channels to onboard customers.
  • Backbase offers 60-second onboarding for financial services companies to accelerate customer acquisition with a simple, fast, and seamless omnichannel onboarding journey.
  • Bankjoy offers developers a banking API for a modern, real-time, holistic interface for credit unions and community banks.
  • Bitbond’s automated, international credit-scoring mechanism compares small business-loan applicants from different countries by using machine learning and data from the applicant’s business accounts.
  • Bluescape offers large financial services companies a highly interactive, visually collaborative platform that uses real-time, cloud-based architecture that’s ultra-scalable, all-capturing, and accessible anytime from any device.
  • BondIT offers financial advisers and portfolio managers a data-driven solution that uses machine learning advanced algorithms to manage fixed-income portfolios and solve optimization challenges.
  • brandCrowder has developed an alternative investment platform focusing on branded franchises. It leverages 45+ years of franchise-operations experience to help retail investors finance franchises, helping to bring them to market quicker.
  • Clinc’s mobile, voice-activated personal financial adviser uses artificial intelligence to help consumers get answers to financial questions and tasks.
  • Consdata offers banks and financial institutions a comprehensive platform for e-form management and customer-communication complexities.
  • Currencycloud’s dedicated API services use intelligent APIs to help businesses with the cost, limitations, and boundaries of existing payment infrastructure.
  • Daon bridges convenience and security by offering financial services companies a mobile biometric authentication platform that turns a smartphone into a mobile capture device.
  • Divy’s app and social investing community uses an approachable interface and engaging content to help first-time and emerging investors access direct marketing and financial literacy material.
  • Dynamics offers issuers and their cardholders interactive payment cards and an authorization-based, real-time loyalty processing system.
  • ebankIT’s platform offers financial institution clients an omnichannel experience.
  • Econiq’s Conversation Hub uses color-coded conversations to help bank and insurer frontline staff, and operational management and executives avoid disconnected customer conversations in branches and contact centers.
  • Envestnet | Yodlee offers millennials a solution for measuring financial health and promoting a healthy financial lifestyle.
  • Experian CrossCore is a single platform that helps manage customer identities, fraud-prevention tools, workflows and decision strategies in an easy-to-use and scalable format.
  • EyeVerify’s Eyeprint ID offers banks and other financial services companies eye biometrics via smartphone cameras for convenient, secure and private authentication.
  • Featurespace’s ARIC Engine helps financial services clients spot and prevent fraud attacks in real time using adaptive behavioral analytics.
  • Finicity offers an API for companies to build financial apps.
  • Fiserv helps financial institutions enable social finance by providing customers access to a safe, collaborative bank-secured social funding product.
  • Full Profile uses the blockchain and smart contracts for real-time settlement and reporting of physical agri-commodities to help farmers, buyers, banks and government counter party and credit-risk exposures.
  • FutureVault’s cloud-based filing cabinet helps financial service providers and their clients organize asset documents and accounts using a secure, structured and collaborative B2B2C cloud environment.
  • GainX’s SaaS platform uses decades of market research and leading-edge technology to help large financial institutions overcome innovation and adaption failures.
  • GoodData helps large banks, credit-card processing and insurance companies commercialize and monetize their data using a scalable, manageable and secure platform that is exclusively designed for data products and embedded analytics.
  • iBank Marketing offers millennials a multifunction digital wallet to help them achieve personal goals around life events by using its local eco-system that bridges consumers and small- to medium-sized enterprises.
  • identitii uses tokens and blockchain to help financial institutions with KYC, CTF and AML compliance using an information layer over legacy systems.
  • InSpirAVE’s social e-commerce platform curates advice and financial support from the user’s friends and family, financial institutions, and merchants. It helps multiply savings, for big-ticket purchases for customers who otherwise may not be able to afford them, by placing important goals for life’s special moments within reach, without the crushing burden of debt.
  • KORE’s platform transforms enterprise applications, online banking and mobile apps into personalized, conversational engagements to help financial institutions meet customer-experience expectations using the power of bots and simplicity of messaging.
  • LendingFront’s lending platform leverages a cloud-based system that furnishes small businesses with capital using their cashflow data.
  • Lidya offers African small- to medium-sized enterprises access to finance using online receivables-based lending and proprietary credit scoring.
  • Liferay’s Digital Experience offers banks a richer understanding of customers by orchestrating personalized customer experiences.
  • M1 Finance places assets held in low-yielding cash accounts into an asset-linked bank account and intuitive investment platform.
  • MapD’s Immerse helps quantitative hedge fund and asset managers query datasets with billions of rows in real-time by applying the parallel processing power of GPUs to the challenges of databases, visualization and analytics.
  • MarketX’s cross-border investment platform helps international investors with the lack of liquidity for U.S. startup shares and limited access to U.S. pre-IPO investment opportunities.
  • ModoPayments offers financial companies a digital payments hub to connect disparate sources of value to diverse destinations using Modo’s COIN technology.
  • Moonraft Innovation Labs helps banks innovate and evolve by rapidly adapting to changing market needs using Catamera, its unique customer experience delivery framework.
  • Moven’s growing platform reaches the millennial, mobile first, digital native audience by bringing banking (specifically savings) into the moment.
  • MX helps financial institutions become true advocates for their account holders by using analytics to power a revolutionary category of data-driven money management.
  • nanoPay offers a payments and loyalty solution for merchants.
  • Overbond’s digital platform offers transparency, efficiency, and liquidity in the fixed income market for corporate issuers, investors, and dealers.
  • Personetics offers financial services providers a digital personalization platform that uses real-time, ultra-scalable predictive analytics to keep customers engaged in the digital age.
  • ProActive FinTech uses a phone app and debit card featuring unlimited mini bank accounts and pre-purchase categorization to help millennial moms with cash-flow management.
  • QE Data offers commercial banking systems a real-time predictive model for net cash-flows that uses machine learning, rich visualization, speedy deployment and real-world banking experience.
  • Qumram uses 100% real-time, video-like recording of every mouse movement, keystroke and button click to help financial services organizations with compliance and transparency issues relating to digital business.
  • RightCapital’s financial and tax-planning platform helps advisers deliver unbundled, quality financial planning and tax-planning services. It works to efficiently and digitally help consumers with the lack of viable business and technology solutions.
  • SaleMove offers financial institutions a live engagement platform to help sell and service complex financial services products online. The platform uses instant video chat and guided browsing with no downloads or installations.
  • Sindeo’s self-directed consumer rate quote and prequalification tool simplifies home financing and refinancing using an integrated platform that offers consumer, real estate partner, and adviser tools that conform to CFPB regulation and ensure a simple and easy consumer experience.
  • SpeechPro’s customer onboarding solution offers multichannel access to help CTOs, developers and other technologists focus on KYC, identity and verification.
  • Swych’s mobile gifting platform offers gift-card recipients a better way to buy, gift, and manage gift cards.
  • Tango Card’s RaaS API 2.0 uses simple-yet-complete delivery technology and domain expertise to help enterprises deliver incentives efficiently and effectively.
  • TokBox’s Financial Services Accelerator Pack offers banks and financial organizations secure and easy-to-embed, real-time communications technology.
  • TransUnion’s interactive data-visualization solution uses big data and analytics to connect and interpret consumer financial data for lenders.
  • Trulioo’s GlobalGateway uses traditional and cyber ID data sources to offer banks, financial services providers, and online marketplaces secure access to reliable, global data sources for instant ID-verification.
  • Trusona’s anti-replay and TruToken technology offers an insured identity platform for sensitive assets.
  • Unbill’s API enables companies to offer bill pay in their app or technology platform without complicated integration or high costs.
  • Uniken’s REL-ID, a card-not-present approval solution, uses mobile API tool kits and DMZ software appliances to help enterprises secure mobile communications.
  • Urban FT’s enhanced, white-label digital banking platform gives financial services organizations, wireless carriers, and other consumer-facing organizations a long-term, competitive advantage that makes their brand integral to customers’ daily financial and online social activities, financial tools, and social features.
  • Xentral Station’s supply-chain funding app helps vendors of all sizes receive cash for trade financing within 24 hours.
  • Zenmonics uses a single, common platform to help banks and their customers minimize friction in customer engagement with channelUNITED.
  • Zooz offers an agnostic, cross-border payments platform to help merchants act on payment processes and save money to maintain their client base.

Stay tuned on the blog for more detailed descriptions. And don’t forget to register now to reserve your spot.