Acquisition adds trading and accounting, enhances robo capabilities for InvestCloud’s digital platform
Los Angeles & London – January 9, 2017 – InvestCloud Inc., a California-based FinTech firm, today announced a strategic acquisition of London-based Babel Systems Limited. The value of the deal was $20 million.
Babel’s client base includes Nutmeg, a recognized market leader in Robo-Advice, and other progressive Wealth Managers and Family Offices. Babel is the most modern trade and accounting platform in the market today and addresses the needs of a heavily regulated and international marketplace. The Babel solution is highly modular and API based, to enable Babel to be integrated with any client platform.
InvestCloud’s digital platform empowers wealth managers with Client Portals, Mobility and Advisor Portals. InvestCloud also enables allocators and managers of multi-asset-class, multi-strategy portfolios with powerful and robust tools for data aggregation, performance analytics and operational efficiencies, all delivered at scale on the same platform.
InvestCloud has over 660 clients with accounting needs served by legacy accounting systems that were designed in the last century. These accounting systems lack the ability to model sophisticated structures, reporting flexibility, and essential cloud, mobility and digital capabilities.
This strategic acquisition links InvestCloud’s digital platform with Babel’s trading and accounting capabilities to provide a unique solution for financial services companies. InvestCloud will also continue to support clients using other accounting solutions and will serve as an open supplier to the market.
John Wise, Chairman and CEO of InvestCloud, comments, “InvestCloud needed an extremely high-volume and low-cost trading and accounting (book-keeping) solution designed for the cloud. Babel is the answer. Babel is designed for the international market and is the most modern platform in the world designed for Robo and Wealth; however, it’s also versatile and can be applied to all major financial markets. InvestCloud’s acquisition of Babel Systems will mark the completion of integrating the full Robo solution stack and will also be used to provide a true cloud alternative to solutions from incumbents like FIS SunGard and SS&C Advent.”
“Babel is the most recently developed Books of Record platform including investment management (IBOR), accounting (ABOR) and settlement (SBOR). Uniquely, it is designed for all international markets, demonstrated by the Nutmeg deployment in the UK and a leading Singapore-based Robo. Babel’s next step was to target the US market; this deal greatly accelerates that initiative. InvestCloud’s digital solutions are world class and perfectly positioned to capitalize on our API approach, as proven by their selection by JPMorgan Chase,” says Steve Wise, CEO of Babel Systems. “The mistake of the majority of accounting systems is that there is an inherent problem with combining warehousing and operational databases into one product. Significantly, InvestCloud has the leading Digital Warehouse, and Babel Systems has the trading and accounting capability.”
Mark Trousdale, EVP of Marketing at InvestCloud, continues, “Further to our recent announcement of being selected by JPMorgan for digital solutions and as PwC’s Strategic Digital Platform, this deal completes the whole product solution. For wealth managers and allocators (multi-family offices, pensions and endowments) that struggle with old accounting systems, InvestCloud and Babel offer a low-friction, cost-effective and massively flexible platform.”
InvestCloud is known for its proprietary PWP (Programs Writing Programs) technology, which positions the firm to deliver enterprise-grade applications to clients with greater speed and cost effectiveness than traditional software development.
About InvestCloud Inc.
Headquartered in Los Angeles, InvestCloud empowers investors and managers with a single version of the integrated truth through its unique digital platform. Today the InvestCloud platform supports over $1.6 trillion of assets across some 660 institutional customers. InvestCloud creates custom solutions for better decision-making. From Client Communications (Client Portals and Reports) and Client Management (Advisor Portals) to Digital Warehousing and Data Analytics, InvestCloud offers first-class investment platforms for successful investing that are rapid to deploy and hyper-modular. Customer segments include wealth managers, institutional investors, asset managers, family offices, asset services companies and financial platforms.
For more information, visit www.investcloud.com.
About Babel Systems Ltd
Babel Systems is a London-based FinTech company that created the most modern API-based trading and accounting solution. Babel’s modular platform provides Order Processing, Settlement, Custody, Accounting, Fees and Charges, Corporate Actions, Compliance, Payments and Portfolio Management for an international marketplace. Babel is truly multi currency and multi lingual.
Nutmeg is a ground-breaking digital wealth management firm specialising in savings and investments, often held under ISA and pension tax wrappers. Nutmeg builds and manages investment portfolios across a spread of risk levels, for cost conscious investors who may not have the time, expertise or inclination to do it themselves.
The company invests customers’ funds in line with their investment goals and appetite for risk utilising listed securities, debt, cash, commodities and other investment asset classes, primarily, but not exclusively, via exchange-traded funds (ETFs).
Nutmeg launched in 2012 by outsourcing its middle and back office functions to an established service provider, enabling the business to focus on its customer proposition. As Nutmeg grew, it became apparent that Nutmeg was outgrowing the scale and functionality that the outsourced provider was able to offer.
Gaps in functionality included offering customer friendly payment options, administering accounts with fractional shares, handling group accounts and multiple currencies.
In an increasingly competitive market it was also clear that an outsourced model would not provide Nutmeg with the commercial flexibility that was required to support its ambitious growth plans.
Implementing the Babel System enabled Nutmeg to insource the middle and back office elements of its operating model, requiring regulatory permission to manage client money and fulfil the role of primary custodian.
The Babel System’s processing capabilities has removed Nutmeg’s growth constraint, enabling up to a million trades per day. Volume has already multiplied 10-fold since implementation.
The ability to handle additional volume with the same headcount underpins back office efficiency which, in turn, drives profitability.
The Babel System was implemented at Nutmeg within just six months; much quicker than typical industry timelines of up to 4 years. The systems’ open API and web service capabilities enabled rapid integration with Nutmeg’s existing front-end client portal.
Bill Packman, COO of Nutmeg, commented, “Babel gave us the flexibility to sustain grow at a critical stage in Nutmeg’s development. Their team were on hand throughout to guide us through its accelerated deployment. The system was selected as an instrumental component of our operations to provide Digital Wealth Management to our expanding customer base and offer additional features, such as fractional share holding, that both established and newer businesses aspire to provide.”
About Babel Systems
Founded in 2008, Babel Systems is a British company with an unmatched breadth of experience in designing, implementing and supporting trading and other financial technologies.
The Babel System is a state-of-the-art, securities processing platform for online trading providers, including platforms, new D2C propositions, stockbrokers and wealth managers. Babel Systems is a modern purpose-built solution that is capable of processing equities, bonds and funds whilst also ensuring regulatory compliance.
The Babel System delivers comprehensive functionality in a modular fashion, enabling firms make rapid and efficient changes as required to specific areas of functionality across settlements, custody, accounting, fees and charges, corporate actions, payments, compliance and portfolio management. This allows firms to drive down the total cost of ownership, whilst future-proofing their technology investments and providing for change as the market evolves.
Nutmeg has gone live on Babel Systems’ modern open back-office; to support growth in trading volumes, as well as operational efficiencies through its middle and back office.
Nutmeg took the decision to move their back office from a recognised outsourced provider, to running the Babel System in house in order to gain greater flexibility and efficiency. This involved changing of their FCA permissions to bring their operations in house.
The Babel System’s straight-through processing capabilities across funds, equities and bonds will enable Nutmeg to address the growth in demand for discretionary management from their clients, as well as to support the anticipated growth in the number of clients.
Through the Babel System, Nutmeg now has the capacity to scale up to a million trades per day enabling unprecedented scope for onward scalability and growth. Further Babel’s superior straight through processing capability will provide for back office efficiencies that will further drive profitability. Using Compeers benchmarks in this area Babel’s other customers are experiencing up to a 50% reduction in operational staffing.
The Babel System has been fully implemented and integrated at Nutmeg in just six months rather than typical industry implementation timeline of anywhere up to 4 years. The systems’ open API and web service capabilities enabled rapid integration with Nutmeg’s existing front-end client portal.
Nutmeg’s investment in the Babel System underlines its on-going commitment to deliver superior investment capability and added value to end-users through advanced technology investments. The Babel System delivers comprehensive functionality in a modular fashion, enabling firms make rapid and efficient changes as required to specific areas of functionality across settlements, custody, accounting, fees and charges, corporate actions, payments, compliance and portfolio management. This allows firms to drive down the total cost of ownership, whilst future-proofing their technology investments and providing for change as the market evolves.
Phil Bungey, COO of Nutmeg, says: “We’re delighted to work with Babel – it forms part of the change to our new operating model to accommodate our growth and in order to continue to deliver a fantastic service to our customers. This new way of working will enable us to be more efficient and help to keep our costs, and therefore our customers’ fees, down.”
Steve Wise, CEO of Babel Systems, says, “We are very pleased to be have been selected in a very competitive market to support Nutmeg’s vision of being the best and most innovative company in this space. We have built our system using modern technology and web services to allow organisations to embed our state of the art system into their creative propositions. We believe Babel delivers value, scalability and efficiency to our clients”
Babel Systems is pleased to announce that it has signed contracts with Multrees Investor Services to provide its securities processing software as a key component of Multrees’ custody and investment administration service for wealth managers and private investment offices.
The agreement follows a comprehensive industry-wide competitive selection process to find the most state-of-the art solution.
Multrees is a market-leading provider of outsourced custody and consolidated reporting for high- end wealth management boutiques and private investment offices looking for tailored support to underpin a high-touch service for their clients. Babel Systems’ advanced web-based modular platform for the automated, real-time processing of multi-asset class investment instruments will be a key component in Multrees’ service offering including Multrees Compass, its interactive web portal for managing client assets.
The Babel Systems securities processing system covers order routing and execution, trade settlement, custody processing and automated corporate actions across asset classes and currencies. Babel System’s software is the most modern system of its kind on the market offering a flexible system that fully exploits the latest available technology and utilises the latest industry standards.
Founder and CEO of Multrees Investor Services Chris Fisher commented: “Advanced technology in wealth management is key to ensuring firms can increase the time they spend advising their clients and minimise the time spent on portfolio administration against a fast evolving regulatory landscape. Multrees Compass will transform the wealth advisers’ experience and help them manage their clients’ assets more efficiently.”
Founder and CEO of Babel Systems Steve Wise said: “We are delighted to form a partnership with Multrees, and were extremely pleased that this market-leading firm has selected us over many older established players in the market. The experience inherent in our team and the work that has gone into developing our product for this market has been recognised by Multrees, and we look forward to working with them.”
Chris Fisher continued: “Multrees is committed to investing in technology that allows us to adaptapt quickly and efficiently to changes in the wealth management industry. Our clients need to be sure that we have safe custody of their assets and scalability of their businesses at the forefront of our service, and the robust Babel platform will allow us to deliver this. We committed a great deal of effort to selecting the correct product that will allow us to provide this service and take us and our clients further forward”.
Partnership will provide financial institutions with a scalable enterprise application solution
London 16th January 2014 – Digital Keystone, the leading provider of technology and services to the Wealth Management and Investment Platform markets, has today announced it has entered into a strategic partnership with Babel Systems Limited (Babel). The partnership joins Digital Keystone’s Adaptive Portal with Babel’s securities processing system to create a front-to-back solution that supports the full trade lifecycle for stockbrokers, hedge funds, direct-to-consumer (D2C) propositions and other financial institutions.
The Babel securities processing system offers rapid order routing and execution, seamless trade settlement and custody processing, and the automation of many corporate actions. It is a flexible system that fully exploits the latest available technology and industry standards to provide automated, real-time processing of equities, bonds and funds. The Babel system has been developed with a leading securities outsourcing company which has more than 12 clients using the system.
Digital Keystone’s Adaptive Portal allows financial services companies to create user-centric portals for both B2B and D2C propositions that customise the customer experience. The Portal not only offers modern intuitive presentation layers for complex underlying systems, but also provides a platform for delivering third-party content and marketing initiatives. Built using the latest web technologies, the Portal is cross-browser and cross-device compatible, which reduces the need to develop multiple native apps for the ever increasing number of devices on the market.
Founder and CEO of DK, Graeme Gets commented, “The Babel system is the only new solution to enter this market for at least a decade, and the first developed using modern technologies. This strategic partnership will enable DK and Babel to offer an unrivalled solution to the Wealth market, making this a very exciting time for both our companies and our clients”.
Founder and CEO of Babel Systems, Steve Wise said, “For us, Digital Keystone represents an ideal combination of flexibility and technical expertise. By working together, we have been able to create a unique solution for the Wealth Management and D2C propositions that are emerging in this dynamic market.”
For further details or to arrange a demonstration of the software please call Justin Belcher on 07906 211032 or e-mail Justin.email@example.com
About Babel Systems
Babel Systems is a state of the art, securities processing platform for online trading providers, including WRAP service companies, stockbrokers and wealth managers. Unlike older trading and processing solutions, Babel Systems is a modern purpose-built solution that is capable of processing equities, bonds and funds whilst also ensuring regulatory compliance.
The Babel Systems team, collectively and individually, has many decades of business experience in the financial and information technology industries. Capitalising on this wealth of experience, Babel Systems has created the first new enterprise level product for over 10 years to support the multiple business models used by its clients. For more information please visit www.babelsys.co.uk
Babelsys is a new generation of securities processing system for WRAP service companies, stockbrokers, hedge funds and other financial institutions
Babelsys is a new generation of securities processing system for WRAP service companies, stockbrokers, hedge funds and other financial institutions. It has been created to meet the needs of the sophisticated investors of today and tomorrow; capitalising on many decades of business experience in the financial and information technology industries.
The Babel Systems Team, collectively and individually, has many decades of business experience in the financial and information technology industries. With experience in UK, international and global projects, the teams approach is to work closely with all stakeholders to deliver successful solutions that meet their business and technical objectives. Capitalising on this wealth of experience, Babel Systems has created a new enterprise level product to support the multiple business models used by its clients.
Babelsys covers order routing and execution, trade settlement, custody processing, and automated corporate action processing. The system is completely web-based, has been developed using Microsoft .NET technology and complies with recognised industry standards such as ISO-20022, ISO-15022 and FIX 4.2.
The founder of Babel Systems is Steve Wise who has worked in the Financial Services industry since 1971. He set up his first company, Synergo Technology (now part of ADP), in 1987 and designed the Tarot system used by most major stockbroking companies in the UK. In 1996, his design for the Halifax Building Society demutualisation won the British Computer Society’s system of the year award. Steve recently sold his blue-button securities processing system exclusively to the Royal London Group. He is a Fellow of the Securities Institute.
Steve Wise says:
“The time is right for a new system that truly harnesses the latest available technologies; offering ease of integration, flexibility, scalability and making it easier to recruit and retain staff. Babelsys is the third generation of stockbroking system I have produced and some members of my team in the UK & India built the two previous systems.”
Babelsys has a layered modular architecture, is based on proven, scalable and flexible technologies, is database independent, and utilises the latest industry standards. It is supported by a workforce experienced in the provision of exceptional implementation and support services.
The design of Babelsys follows the Service Orientated Architecture (SOA). SOA defines the business-processes of the system as a number of non-related ‘services’. The services communicate with each other by passing data from one service to another, and individually are reusable, modular and portable. This design approach aids standards compliance. Service orientation aims at a loose coupling of services with the technology underlying the application solution.
Development of Babelsys uses the Spring.NET framework. Spring.NET is an open source application framework that makes building enterprise .NET and ASP.NET applications easier. The design of Spring.NET incorporates the proven architectural and design principles of the Java version of the Spring Framework. Spring.NET is itself modular, allowing use of the functionality in its modules independently thus enabling us to create a more focused solution.
Development of Spring.NET is led and sustained by SpringSource. Further details can be found on the website www.springframework.net.
The chairman of Babel Systems is Rodney Hornstein, the former Chairman of publicly quoted software company Alphameric and an active business angel investor, had this to say:
“Having worked alongside Steve Wise at Investment Sciences on the development of blue-button, it is very exciting to see his vision of a new technology solution for the WRAP marketplace become a reality. Throughout the development our team had a clear road-map of what they wanted the system to achieve, both functionally and technologically, and recognised that if the market wants something unique, that provides a true differentiator, then a different system would be a clear advantage.”
Note that Babelsys is applicable to; WRAP providers, private client stockbrokers, back office service providers, execution only or corporate brokers, clearing houses, investment managers, boutique fund managers or discretionary wealth management companies.