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Opus Bank’s subsidiary sees increase in online account openings with enhanced Alt-Nav technology

BBR Staff Writer Published 10 May 2016

Opus Bank announced that its wholly-owned subsidiary, Pensco Trust Company, a major tech-enabled alternative asset IRA custodian, has experienced a significant increase in online account openings as a result of the enhancement of its Alt-Nav technology with Straight-Through-Processing (STP).

The percentage of PENSCO new accounts opened online increased 62% during the first four months of 2016 when compared to the percentage of accounts opened online in 2013 when Pensco initially launched its online account opening capability.

The percentage of accounts opened online increased further since the Alt-Nav technology with the STP enhancement rolled out in February 2016. During February 2016, 42% of Pensco's new accounts were opened online through Alt-Nav with STP, with 18% of those accounts opened after business hours.

Those results increased significantly to 69% in March 2016 with 19% of those being opened after business hours, and increased further to 70% in April 2016, with 20% of those opened after business hours.

Pensco's Alt-Nav technology solution, which received the award for "Most Innovative Technology Solution" at this year's HFM US Technology Awards, streamlines opening, funding, and investing in alternative assets using individual retirement accounts.

It reduces the typical process from weeks to days, while delivering transparency, administrative accuracy, and an intuitive user experience for capital raisers, financial professionals, and individual investors.

Alt-Nav is a first-of-its-kind FinTech solution designed to help financial professionals and those trying to raise capital - including fund managers, private businesses and entrepreneurs - work seamlessly with individuals who invest in non-traded alternative assets using their self-directed IRA.

Individual investors in alternative assets can use Pensco's Alt-Nav technology solution to open and fund their self-directed IRA held at Pensco entirely online, as well as complete an investment authorization, which is pre-populated with a capital raiser's deal information.

Alt-Nav eliminates the need for the investor to provide the same personal and deal information across multiple documents, significantly limiting the need for additional investment documents.

Additionally, an advisor, fund manager, or other capital raiser can quickly and efficiently upload investment documents electronically and then easily invite prospective investors to open, fund, and invest with just a few clicks. Pensco continues to increase the functionality of Alt-Nav and expects to release new functionality for advisors and wirehouses in the near future.

Opus wealth services executive vice president and president and CEO of Pensco Kelly Rodriques stated: "The process for opening, funding, and investing in alternative assets through an individual retirement account historically has been a complex labyrinth of people and paper intensive processes, if you could actually find a custodian willing to support and hold the alternative investment asset class. Today, Pensco clients have the ability to open an account anytime they choose through a streamlined user experience.

"The Alt-Nav technology resides within Pensco's high-speed, scalable, and reliable platform that is securely integrated to facilitate the exchange of information electronically, without the need for repetitive re-keying or manual intervention. At a time when investors are increasingly looking for diversification, Pensco's Alt-Nav technology is at the forefront of innovation by serving as a catalyst and an enabler for alternative investment opportunities."

Pensco SVP, business development Patrick Hughesconcluded, "Given the increased adoption rate of our needed proprietary technology, the important role Pensco plays as a leading alternative asset IRA Custodian, and the financial strength of our parent, Opus Bank, we're now well positioned to focus on realizing even greater scale as we look to meaningfully increase Pensco's client base, assets under custody, and revenues, while continuing to deliver exceptional client service."

Source: Company Press Release