FinancialDirectorEurope.com's tech journalist Swagath Bandhakavi outlines how our new product CastX will change the way brokers and advisors manage the complex world of corporate actions.
BetaNXT, a US-based provider of wealth management technology solutions, has launched the BetaNXT CastX tool for managing corporate actions efficiently.
This development is said to be an important step in BetaNXT’s strategy to improve the handling of corporate actions and enhance the value derived from investor communications.
BetaNXT CastX aims to address challenges faced by brokers and advisers, such as manual data errors, complex communication chains, and notification delays.
According to BetaNXT, corporate actions, including tender offers, exchange offers, and conversions, are significant events initiated by publicly traded companies that affect both the company and its shareholders.
Traditionally, managing these actions involved manual processes that posed risks of operational errors and delays. BetaNXT CastX automates the entire lifecycle of corporate actions, from sourcing announcement data to submitting information to the Depository Trust & Clearing Corporation (DTCC) and managing tax reporting.
This automation improves transparency, reduces risks, and increases efficiency, said BetaNXT.
BetaNXT CEO Bob Santella said: “BetaNXT CastX’s capabilities alert advisers to the corporate actions taken by companies whose securities are held in their clients’ portfolios and help them make sense of the financial impact the actions can have."
“What we have developed is a frictionless, front-to-back solution which, through the use of accurate data from multiple sources, can be tailored to help many different stakeholders — advisors, as well as investors, corporate issuers, investment managers, and operations staff — adapt to meet evolving needs, without disrupting their existing workflows.”
Incorporated within BetaNXT’s larger connected ecosystem, which includes DataXChange and artificial intelligence (AI) capabilities, BetaNXT CastX benefits from a cloud-first deployment model.
DataXChange, powered by Snowflake’s AI Data Cloud, facilitates seamless data exchange between wealth management firms and their partners by integrating internal and external data sources.
Built on DataXChange, BetaNXT CastX is said to provide advisers with a comprehensive view of necessary corporate actions and their potential impact on investor portfolios.
BetaNXT CastX offers flexibility through its modular design, allowing firms to either adopt the full suite or select individual modules tailored to their needs, claimed its developer.
The modules include Sourcing & Setup, which automates the processes of sourcing, scrubbing, and sharing offers.
The Notification module facilitates the delivery of notifications and reports through multiple channels, while the Election Capture feature provides digital tools for submitting and tracking corporate elections.
Election Submission streamlines DTCC submissions to improve accuracy, while the Allocation module involves automated transaction processing for entitlements.
Another module, which is Cost Basis, handles the allocation of costs to new securities and calculates gains and losses for taxable events.
Last month, BetaNXT announced that the DataXChange platform is fully operational and available following a successful pilot with early adopters. The platform launched three months ahead of schedule after onboarding various wealth management firms.
Powered by Snowflake, DataXChange is designed to assist wealth enterprises in advancing their data modernization efforts and driving growth.
Reprint from: Finance Director Europe
