3 Reasons Why Wholesaler Value Could Increase

Written by Christopher Olson

Reverse inquiries are an excellent area for wholesalers to provide value. However, the current way most wholesalers facilitate reverse inquiries is very time-consuming and subject to human error because it is based on manual tracking and email communication. On top of that, there are the differing compliance requirements to adhere to for each broker-dealer, which can be an added challenge for wholesalers that support a large number of clients. All of these considerations are important because when competing against other wholesalers, quite often the first to provide a response is more likely to close the deal. In other words, while accuracy and suitability are critical, so is SPEED!

Here’s how wholesalers and the industry at large stand to benefit from the application of technology to the reverse inquiry process.

Automation and Streamlined Workflows

Automation is a powerful tool for managing the workflows involved in custom structure pricing. When information conveyed in an email has to be keyed into a spreadsheet and then into an order-entry system, the chance for errors is greatly increased. An automated system eliminates the need for emails and reduces the data-entry involved in generating responses from issuers. This will improve both productivity and accuracy.

For more information on what the workflow looks like, see “How Pricing Automation Works”.

Financial Technology Creates Guard Rails

While most good wholesalers are fully aware of the particular compliance requirements of their clients, financial technology provides additional guard rails to safeguard against potential suitability concerns. These guard rails can be implemented at three different levels. First, a fully-customizable interface can be configured to match each firm’s particular workflow requirements. In this way, a wholesaler can demonstrate that appropriate reviews and approvals were conducted for each deal. Second, firms can utilize role-based permissions to ensure user requests and actions are in line with the user’s level of authority. Lastly, platforms can facilitate the systematic enforcement of which issuers should receive which types of reverse inquiries. Now, wholesalers are better able to ensure workflow, user and issuer compliance across any and all reverse inquiry requests.

Digital Archive

When placing orders through online systems, a digital archive is automatically created containing a log of the entire process. This log organizes and tracks important details such as names, comments, files, and product information, which makes it much easier to manage requests and reorder products at a later date. Reps are also able to utilize information from the digital archive to look up product performance for a client. 

By utilizing financial technology and thereby scaling and improving the processes for managing reverse inquiries, firms can move faster and potentially generate more sales – all while ensuring a smooth system for control and compliance.


Interested in learning more about how Luma automates the process of reverse inquiries and creating custom structures?
Check out our new Product Creation Tool.

Product Creation Tool