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Why building a tech stack is like going to the bike shop


Financial advisors choose technology the way cyclists pick out their rides, Riskalyze Managing Director for Enterprise Services Dana Rhodes explains in a Financial Planning podcast.

In other words, some riders opt for a fully built model for most kinds of surfaces while others look to create their own bicycle out of the best specialty components for their streets, paths or trails as needed, according to Rhodes. And she’s seeing “more advisors, particularly the more sophisticated advisors” moving to the more flexible approach these days, she says.

The risk analysis software serves both groups of advisors through integrations and enterprise agreements with more than 150 RIAs, broker-dealers and other wealth management firms. Some 20,000 advisors use Riskalyze to judge how securities, funds and other products fit their clients’ portfolios. CEO Aaron Klein and CTO Matt Pistone launched the firm in 2011.

Dana Rhodes is the managing director for enterprise services at Riskalyze.

In the interview with FP Senior Editor Tobias Salinger, Rhodes discussed a new compliance tool that Riskalyze is offering advisors and firms for the SEC’s Regulation Best Interest. The former vice president of advisory services at Kestra Financial also described the shift in the way that planners are less interested in “pre-packaged” solutions these days.

“I know, in my former role, I started to see a lot of that,” Rhodes says. “Advisors said, ‘Look I’ve got enough scale. I’ve got enough size. I’m independent, so I have all of this choice. I want to pick a solution that meets my exact needs. And so they go maybe with a company that is specialized in one area, versus the company that does a little bit of everything. Just because they may have certain needs that they have around a risk questionnaire. So they don’t want something out of the box from someone else.”