Technology

Raising The Investment Reporting Game - A Conversation With Landytech

Tom Burroughes, Group Editor, London, 15 October 2021

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6. Aren’t there lots of similar offerings from private banks, etc?  
No. Whilst some banks offer their global custody arrangements, clients typically don’t want a bank that provides wealth management capabilities for certain sleeves of their portfolios to also cover all the other mandates. The conflicts are just too problematic! Anyway, their solutions are expensive, limited and clunky.

7. We talked a lot about family offices – what specific needs do they have that this offering is designed to meet? Have you come up against “horror stories” of poor reporting and lack of information? The industry keeps banging on about the need for good reporting, etc, so why hasn’t the situation improved faster?  

The challenges are massive and the requirements to build a solution are overwhelming: 
-- Technology challenges include creating a global network of pipelines to source fragmented and non-standardised datasets; 
-- Data challenges include the complex need to clean, normalise and enrich this massive amount of data; 
-- Analytical processes are then required to make complex calculations at scale while accounting for cash flows (movement, transactions, income, costs) in an accurate manner; and 
-- Finally, you need application layers with modern and user-friendly UI (User Interfaces) with complexities at par with high-end CRMs or ERPs.

Engineering, financial expertise, financial statistics, design requirements add to a massive need for capital, expertise in different fields and lots of experience. This is not your “everyday SaaS company” and the very few who have tried to tackle the challenges are large corporations, who spend a fortune, and then charge insane amounts to their customers.
 
Horror stories including costly “one-off” exercises where an investment firm enters client data on a single date across all portfolios/assets to get a “snapshot” of their overall value. One global family paid $700,000 for this exercise to be carried out. It took five months and was out of date before the report was completed. The report did not include any risk evaluation.  

8. On the call Gregory said there has been a seed financing round. How much was raised?  
We raised seed financing when we started in 2019 and just completed a Series A in March raising $6 million (£4.3 million). We have a great group of shareholders including family offices, hedge fund managers, venture capital, and influential leaders in the financial services industry. Some are clients. Our network is becoming very significant with viral effect. That explains how we have grown so far without sales and marketing teams. Our clients are very happy and new clients have all come through client and network referrals.

9. I understand you have 30 clients. Any that can be named, or referred to anonymously?      
Yes, we have references which we have permission to share. Our clients are very happy with our services, a number have written impressive testimonials and we will be publishing them soon. We have not lost a single client. I think that is our best advertisement.

10. How many people work at Landytech? 
Forty nine but we have 18 open positions which we are hoping to fill as soon as possible. The company is growing by 100 per cent per annum.

11. We briefly discussed how this business might dis-intermediate parts of the wealth value chain as far as family offices and others are concerned. Can you elaborate on this?
This is important, this is our philosophy. This is what the digital revolution has brought to many industries. Yet, that has not happened to the private wealth world.

Why is it that in 2021, ultra-high net worth individuals and groups with phenomenal wealth still have to struggle with Excel, go to each bank portal to get a glimpse at what they own? Technology has not penetrated this industry and we intend to change that.

There are big barriers to entry, from big banks blocking access, to financial data providers refusing an open-source approach to financial data. 

The complexities of technology also mean that you need to deliver a plug-and-play solution to end users. We have designed a solution that leverages our amazing software platform and adds a layer of professional services. Our fully-managed service offering means that our clients have nothing to do and within a couple of clicks can access the information that matters to them. The whole process of information gathering, analysis and reporting is a much smoother experience for our clients today than their legacy processes and workflows.
 
12. In tracking the progress of this firm, what does “success” look like?     
Success means revolutionising our industry and realising our vision. We are building a global company with very ambitious goals. We are not trying to optimize on short-terms gains. That is why we have focused on our solution rather than selling or marketing. We are doubling every year and we can continue for the next 10 years. 

13. What sort of metrics and targets are you setting for yourselves on this? Are there any businesses out there that you model yourselves on and regard as an inspiration?
There is no one doing what we do. We need to invent a new solution and constantly innovate. The biggest inspiration probably comes from technology companies such as Salesforce or Hubspot in the CRM world. That is very much what we want to become for our clients, their central solution for their day-to-day activities. Third-party integrations and marketplace is clearly the significant way forward to achieve this.

14. What have been the biggest challenges in creating this business? 
They are so many… and yet we feel lucky to be in a less competitive area. Our business is global, so we need and aim to be orders of magnitude better than the next thing. Today our biggest challenge is to find great staff who will build tomorrow’s success.

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