On today’s episode of Fintech Impact, we have a repeated guest Aaron Klein, the co-founder and CEO of Nitrogen Wealth formerly Riskalyze. Aaron was back in April of 2019, and he has been up to quite a lot. Aaron introduces the concept of behavioral science, alluding to how clients react to financial decisions. He shares an anecdote about an advisor who realized that he was anchoring his clients' portfolios based on his own risk tolerance which led to a misalignment in clients' expectations and actual investment outcomes.

Episode Highlights 

• 00:52: Aaron discusses the evolution of their company, originally named Riskalyze, reflecting on its 12 1/2-year journey since its foundation and the launch of their initial product for advisors.
• 03:26: Jason expresses a desire to discuss the client's journey with Aaron, mentioning the need for better structures and processes in the industry.
• 09:20: Jason acknowledges that while there are solutions for SEO and content marketing to attract leads, the real challenge lies in the post-acquisition phase—how to nurture and engage these leads effectively, which he views as a significant task.
• 13:39: Aaron discusses their proposal capabilities that enable advisors to create investment proposals aligned with a client's risk tolerance and needs, emphasizing the credibility of data and analytics over traditional trust-building methods based on image alone.
• 26:48: Aaron explains that while Nitrogen isn't marketed as a compliance tool, solo advisors can significantly benefit from the platform as it helps them document client risk preferences and agreements, reducing the risk of legal issues in the future.
• 35:13: Aaron emphasizes the need for top-tier wealth management firms to use top-tier technology and believes that integrating the right technology into the growth process is crucial for success.
• 36:57: Jason points out that many large players in the industry have been acquired by even larger companies, and the landscape has shifted, making it more challenging to replicate past successes.

3 Key Points

1. Aaron Klein talks about Riskalyze's transformation over 12 1/2 years to Nitrogen Wealth, a platform for wealth management firms.
2. Aaron discusses behavioral science's role in finance and introduces tools like "retirement maps" and "check-ins" for better client engagement.
3. Nitrogen's focus shifted to being a growth platform. Aaron stresses the need for integrating top-tier technology in wealth management.

Tweetable Quotes

• Risk is one of the critical dimensions when building investment proposals for clients. - Aaron
• "Emphasizing the issues with advisors not effectively aligning with clients' risk preferences, Nitrogen Wealth steps in to bridge the gap." - Aaron Klein 
• "In the post-COVID era, trust-building evolves - data and analytics become more crucial than image alone." - Aaron Klein

Resources Mentioned:

• Facebook – Jason Pereira's Facebook
• LinkedIn – Jason Pereira's LinkedIn
• Woodgate.com – Sponsor
• https://nitrogenwealth.com/
• Podcast Editing

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