Totum Risk Taps FinMason to Expand Portfolio Analytics Suite

BOSTON, Sept. 25, 2018 /PRNewswire/ — FinMason, a rapidly growing fintech firm operating one of the largest investment analytics platforms in the world, today announced that it has partnered with Totum Risk, the only multi-dimensional risk tolerance questionnaire that helps financial advisors understand how much risk their clients can comfortably take based on their current life situation. FinMason will deliver robust portfolio analytics via their FinRiver API to power intuitive graphs and charts within Totum Risk’s on-demand reports.

“Expanding the breadth of analytics available within the Totum Risk platform has been one of the top client-requested enhancements,” said Larry Shumbres, CEO of Totum Risk. “By partnering with FinMason, Totum is able to offer a new suite of analytical features to enhance models and add value to the advisor/client relationship.”

Where many risk tolerance tools are single-faceted, Totum Risk scores each client on two distinct components: (1) Risk Capacity, or how much risk they can afford to take, and (2) Risk Preference, or how much risk they want to take. These two scores are then weighed against the investor’s current portfolio to determine how much risk they should be taking. This approach sets advisors up to understand a client’s risk from various perspectives – life situation, preferences and portfolio risk – resulting in a more thorough understanding of each investor’s unique circumstances and, ultimately, a more appropriate and accurate investment strategy.

“Totum Risk has been a leader in the field of helping advisors to identify their clients’ risk tolerance in a robust way,” said Kendrick Wakeman, founder and CEO of FinMason. “It makes perfect sense that they would offer enhanced risk visualizations so that advisors can have meaningful, two-way conversations about how much risk a client should be taking and why.”

Instead of building its own products, FinMason has the stated goal of delivering robust investment analytics over an easy-to-use API to other WealthTech firms. FinMason’s API is intended to accelerate development by allowing the WealthTech firm to focus on rapid prototyping and iterating on functionality. The announcement comes on the heels of the launch of The Five-Minute Financial Plan, powered by FinMason on the Orion Advisor Solutions platform.