FinOptSys has completed a Series A funding round with backing from State Street.
The New Jersey-based provider of enterprise-wide software-as-a-service solutions indicates that it will be using the fundraising to expand its global team and to extend the range of traditional and non-traditional assets supported through its peer-to-peer (P2P) network services.
Using artificial intelligence to drive decision-making, patent-pending analytics and P2P negotiations, FinOptSys also intends to add further technology innovation to its current suite of modules.
Formed in 2019, the company says that it is the first platform to support all securities financing products across all asset classes and client segments. This includes providing legal document and collateral schedule negotiation and digitisation, along with frictionless trade negotiation with clients, counterparties and peers.
FinOptSys founder and CEO Divyesh Bhakta says: “Rather than being reactive, our technology will empower firms to manage their financial resources proactively with increased optionality. This seamless access to new sources of liquidity will reduce costs, increase yield and optimise asset utilisation, all done in a fully transparent manner.”
“Our vision of AI analytics powering peer-to-peer will not only drive the future of the industry and empower our clients with the sophisticated tools necessary to thrive, but it will also help unlock trapped assets through an innovative indemnification marketplace.”
Commenting on the funding round, State Street Global Markets head of financing solutions Gino Timperio says: “This represents a significant milestone in our relationship with FinOptSys. We believe this investment will further enable our organisation to deliver better results on behalf of buy-side clients in the peer-to-peer marketplace. We look forward to collaborating in the securities financing arena.”
FinOptSys indicates that it has plans to extend its service capabilities outside of the securities financing segment. “Our innovations will not only revolutionise the securities financing industry, but they will also form the foundation of our ultimate vision to deliver greater market efficiency, connectivity, liquidity, revenue generation, risk management and transparency to the broader financial markets,” says Bhakta.
Last week, FinOptSys entered into a strategic partnership with S&P Global Market Intelligence to help deliver securities financing market data and services, including an extended range of analytics tools.
