November 12th, 2014
Last week we announced that our acquisition of FolioDynamix has closed and that FolioDynamix is now officially an Actua company. To punctuate this announcement, Joe Mrak, CEO, FolioDynamix, joined our Third Quarter 2014 Earnings Call, and provided some additional insight into the business. Building on that, we also wanted to share the three reasons why we are so excited about our latest addition to Actua. These are:
• FolioDynamix is playing in a HUGE market and one that is significantly under-served by cloud-based solutions; representing an enormous opportunity. FolioDynamix serves Brokerage firms, Banks (trust & retail), Large RIAs & RIA networks and other fee-based managed account providers – with banking and large brokerage firms representing their sweet spot. Although the total addressable market is difficult to precisely quantify, some suggest between $2B and $5B, on upwards, and more than 320,000 U.S. financial advisors across a variety of channels – there is no doubt that it’s massive. And with well over 100 opportunities in the FolioDynamix pipeline, we are ready to capture the value in this market and grow it over time. In addition, FolioDynamix typically competes against old legacy systems and methods (i.e. Excel spreadsheets) that are siloed and/or often times homegrown. Many of these legacy platforms and processes were formed through evolution rather than with clients in mind, which is where FolioDynamix can really add value. Depending on the historical choices of their clients, their modular products are ideal for solving whatever their customer pain points are – however big or small.
• FolioDynamix is alleviating severe customer pain points. As discussed, FolioDynamix is primarily selling against the old ways of doing business. Advisors are under tremendous pressure to attract the best and the brightest talent, and often, technology can be a key point of differentiation in the recruiting process, especially when it can make advisors more efficient and free up their time to better serve customers, like FolioDynamix’s platform can. In addition, this market is facing growing complexity and compliance requirements, seeking solutions to help better manage those pressures. And finally, this market can’t afford lengthy, time consuming and expensive system implementations – they need a solution that can be easily set up and ready to go, as well as one that will innovate along with the industry to keep pace with trends and drivers. For all of these reasons (and more) we firmly believe that FolioDynamix is well positioned to serve their market and alleviate the biggest pain points of its customers now and ongoing.
• FolioDynamix offers a very differentiated and comprehensive solution. FolioDynamix is the first and only single code-based, comprehensive wealth management platform – designed to manage the whole wealth management lifecycle across all account types. Their growth to date has been a product of focused and innovative R&D efforts – rather than piecemeal acquisitions, which has resulted in a comprehensive platform that has kept pace with industry trends and pressures. Furthermore, given the integrated nature of their platform, new product development is fast to market and available to all customers simultaneously – without further investment or implementation. But you don’t have to take our word for it, watch this video, featuring FolioDynamix’s client, Cetera Financial, on how the use of the FolioDynamix platform has transformed their business for the better.
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