Riskalyze wants to turn compliance into growth engine with latest product

What if compliance could be an engine of growth for wealth management firms, rather than a resource-draining hassle required by regulators?

That’s the idea behind Riskalyze Ultimate, the latest offering from the adviser fintech company. Riskalyze Ultimate combines two existing products — Riskalyze Command Center, a compliance analytics and administration tool, and Riskalyze Elite, the company’s core risk alignment software — into a single package for registered investment advisers and independent broker-dealers.

Riskalyze is bundling the products together in response to feedback from some of the larger wealth management firms the fintech has been targeting recently, said Riskalyze chief growth officer Drew DiMarino. With Ultimate, a compliance team can look across the firm’s entire book of business, see which clients’ portfolios are out of alignment with their risk assessment score, and let the advisers know about the opportunity to reach out.

That engagement can help demonstrate the adviser’s value to the client and even lead to pulling in additional assets, DiMarino said.

“We think Ultimate will transform compliance into a revenue generator for firms,” he said. “This is the data and analytics that [advisers] crave, the ability to reach out with actionable next steps and provide value.”

While Riskalyze has been open about its goal of working with more large wealth management firms, like the deal it has with Cetera Financial Group, Ultimate is intended for what DiMarino calls “10 and up” firms — midsize to large companies with 10 or more advisers.

“Once the data becomes a bit more cumbersome is when this [product] really pops off the page,” he said. “When your firm gets really substantial in size, that’s when it becomes difficult to be proactive. You become reactive.”

Riskalyze has traditionally worked more closely with the wealth management and business development teams within these firms, but more recently the biggest advocates for the technology have been chief compliance officers, DiMarino added. With Ultimate, the various teams can work together with a single platform, he said.

“Gone are the days of a fragmented client experience and using ‘hope’ as a strategy for finding the ticking time bombs in client accounts,” Aaron Klein, Riskalyze’s CEO, said in a statement. “Riskalyze Ultimate enables advisors to help clients visualize and understand the relationship between risk and reward, while their firm leaders can ensure their businesses are protected and growing.”

Pricing for Riskalyze Ultimate will vary on a firm-by-firm basis. Riskalyze Elite and Command Center will still be available to firms as stand-alone products.