It’s a perfect fintech match.
Chicago-based Oranj is acquiring majority interest in Layton, Utah-based TradeWarrior Software, a rebalancing and model management provider in a deal that combines two RIA-founded financial technology firms.
“We’ve both identified that there’s this need for unified, deeply integrated solutions that can utilize the sophistication that advisors require in the back office from a trading and rebalancing functionality,” says Oranj CEO David Lyon. “There’s a natural synergy between us there, where we felt like there was a void in the marketplace.”
TradeWarrior’s rebalancing software simplifies the task of rebalancing across client accounts and custodians. The firm’s algorithms allow advisors to identify tax-loss harvesting opportunities and monitor client accounts on an easy-to-use interface.
While Oranj will continue to handle many of an office’s front-office needs, TradeWarrior will offer back-office support to advisors.
“We feel like we’re bringing two best-of-breed softwares together for the advisor and the end client,” says Damon Deru, founder and president of TradeWarrior. “This is going to help modernize the client to advisor relationship by marrying up the trading components of TradeWarrior with the client relationship management and goals-based planning capabilities of Oranj.”
Integrated with Oranj’s client-interaction tools, including account opening and transfer, data aggregation and a document vault, TradeWarrior will enable deeper digital interactivity between client and advisor
For example, Deru imagines that clients will be able to change their risk tolerance through Oranj’s client portal. TradeWarrior could then adjust clients’ account allocation to reflect their new risk tolerance.
“We’re trying to build in automation to help advisors operate more efficiently,” says Deru. “We’re still very pro-advisor and we look at this as a hybrid solution. We want advisors to have the technology they need to remain relevant and provide a modern client experience.”
Because both firms were built by RIAs in response to needs that Lyon and Deru saw within their own practices, both executives say that they’re well-positioned to respond to industry demand moving forward.