intelliflo's redblack platform has quickly become a vital tool for many RIAs looking to manage their portfolios.
Jennifer Valdez, president of Americas at intelliflo, a fintech company for RIAs, says 25 percent of the 50 largest RIAs in the US currently use intelliflo redblack, representing an impressive $700 billion in assets on the platform.
What’s behind the software’s appeal? Its ability to streamline rebalancing and trading operations across multiple custodians, offering a solution for firms managing portfolios at scale.
Valdez emphasizes the importance of scalable technology in today’s market, noting that many RIAs, particularly those engaged in mergers and acquisitions, are outgrowing free or basic software solutions.
"A lot of advisors out there use free technology, but you only get so much with free. When you have a large organization that needs to trade at scale, you need a robust solution," she asserts.
For growing firms, intelliflo redblack offers the consistency and compliance features necessary for firms that have expanded through acquisitions and need a unified tech stack.
The increasing pace of RIA M&A in the advisory industry has presented both challenges and opportunities for tech providers like intelliflo. This comes as large RIAs acquiring smaller firms need efficient ways to integrate new entities while maintaining compliance and operational consistency.
“That's why intelliflo redblack has been a choice in many new acquires that are starting to go out and grow. They want a preferred tech stack. They don't want all their acquiring firms with a million different technologies,” Valdez explains. “It's not efficient, it's hard from a regulatory compliance perspective, and they want to have consistency in the organization.”
Valdez admits that the demand for intelliflo redblack's capabilities is particularly strong among firms managing between $1 billion and $5 billion in assets, many who have outgrown manual processes like Excel spreadsheets.
"You’re just shocked how many three-to-five billion-dollar shops are running on Excel. It exists, but it’s not scalable, and from a compliance and regulatory standpoint, it’s a challenge," she remarks.
Another trend Valdez notes which is gaining traction is the outsourcing of trading functions. intelliflo’s outsourced trading solution, intelliflo managed, offers advisors the option to delegate trading responsibilities while still maintaining control over investment preferences. This is especially appealing to advisors who prefer to focus on client relationships rather than managing trading operations.
“If you're a mega shop and you have centralized training, you want technology that is intelliflo redblack. But for other advisors that want to spend more time with their clients, that's a great alternative,” added.
For smaller firms, the ability to scale with outsourced solutions can be a game-changer, she says.
“We’ve also seen a trend toward outsourcing. Advisors are saying, 'My time is better spent elsewhere,'" Valdez shared. “We want to widen access to financial advice. Advice should be broadly available.”
Valdez points out that for many advisors, choosing the right technology comes down to culture and fit. "It’s not just about having the best technology. It’s about making sure it fits within the culture of the firm," she says, noting the cultural alignment is especially important in M&A scenarios, where advisors need to ensure that the technology supports their firm’s long-term goals and values.
Looking ahead, Valdez sees a continued evolution in the advisory space, driven by both technological advancements and shifting advisor preferences. With the rise of AI and data-driven insights, she believes that firms will need to focus on organizing and utilizing their data effectively to stay competitive.
"One thing I heard yesterday is, ‘Get your data in order because AI is only as good as the data that you know," she says.
As the industry continues to consolidate, Valdez sees intelliflo playing a crucial role in helping firms scale their operations efficiently.
"We’ll grow as fast as our clients grow," she says, expressing optimism about the firm’s ability to double its market share in the coming years.
Valdez has led intelliflo through significant growth over the last several years. In 2021, Invesco brought together five separate software businesses to form intelliflo, a single API-driven platform powering the end-to-end advisory experience.
Her role consists of overseeing sales, service, and implementation teams, connecting RIAs and financial advisors with the technology they need to grow and remain relevant.
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