Luma Insights:

Bringing Customization and Transparency to Structured Products

Luma’s superior technology makes customization and transparency a critical measure in structured product solutions.

Technology is revolutionizing the way financial advisors across the world are discovering, comparing, creating, purchasing, managing, and tracking structured notes to grow their book of business. As the capabilities of fintech platforms open up a new world of possibilities to oversee the full lifecycle of structured notes, these platforms are also quickly changing the standards on how investments, both traditional and alternative, are transacted.

While each one of us has our own preferences on how we use technology to manage daily tasks, financial professionals around the world are finding that fintech platforms are rapidly becoming the way to conduct investment business to positively impact their clients’ financial future. The reason is as simple as the age-old formula: Time = Money. By using a trusted, award-winning platform, like Luma, to seek out and build the structured products, an advisor can cut down on the time spent securing the best investment vehicles for their clients.

All leaps in standard business practices have their growing pains. Take, for example, the simple act of writing a letter. Before email, letters were written on paper, reviewed one line at a time, and sent across large distances through the postal service. Today, the same letter can be written on a computer where words are typed faster, spelling and grammar errors are flagged instantly, corrections can be entered with a few clicks, and delivery is instantaneous. The final message is the same, but how you got there is faster and more reliable.

Letter writing is the tip of the iceberg. Today, finance technology gives advisors the chance to step off the trading floor and instead explore the vast possibilities of digital exchange. Granted, the rapid rate that the globalization, democratization, and consumerization of structured products is developing at can be overwhelming. Yes, the speed can be off-putting at first, especially when the very nature of how structured products are built, managing them can be a multi-step process that takes time, attention, and vigilance to ensure that a transaction is done successfully. It’s worth stating in no uncertain terms that these new trading technologies aren’t nefarious. Quite the opposite. They’re designed with the direct purpose of making the work of finance professionals as efficient and accurate as possible. Given.

What about the time it takes to learn a whole new software system? Won’t business slow down because you’re too busy clicking around trying to find out which way is up? That’s a fair concern. Pen and paper has its perks, but if you’re trying to craft structured notes that need to be tailored to unique investor needs, using a fintech platform like Luma is going to be far easier, quicker, and safer in the long run. Luma automates the delivery of key notifications so you can receive alerts on product deadlines, call events, coupons, maturities, corporate actions, and new trainings. The Luma platform also incorporates customization and transparency features into the management process so advisors receive timely notifications on offerings and have a full view of exactly how their assets are performing at any given time. Portfolio managers and investment advisors can add any number of additional factors into structured notes beyond equity index performance to further customize solutions for their client’s portfolios. These products may not be for everyone, but for sophisticated investors, they have become easier to understand, easier to adjust, and easier to track across their lifecycle.

As the saying goes: work smarter, not harder. With Luma, the end net result is that advisors can quickly build their book of business while also giving more time, attention, and care to their clients.