What is Transaction Origination?
Transaction origination happens when you find a source where people can invest their money via cryptocurrency as well as fiat currencies such as U.S dollars or euros. Transaction origination is how you earn money by getting your client to trade on their account. It’s the first step in the financial sales pipeline because it is what kickstarts your relationship with your client. Once you have established trust through identifying a need, need fulfillment, and closing the sale, the next stage is to execute transactions.
What Are the Different Types of Transaction Origination?
You can make your transaction origination be on many platforms from e-commerce to real estate. Below are the different types of transaction originations:
Crowdfunding is a type of transaction origination that is a centralized platform that involves users donating their money in exchange for some sort of reward or a share in the company’s profit. It involves both fiat currencies and cryptocurrency, while having a lot more ease compared to an ICO.
An ICO is a type of transaction origination involving issuing new cryptocurrencies or blockchain-based tokens for the desired purposes. If you want to get involved with an ICO, you will need to reach out to a consultant so that they can help you create the necessary whitepaper and get your company’s project approved for that specific ICO.
A VC (venture capital) transaction origination is a platform that is often used in the fields of venture financing and technology companies. This system involves providing funding to innovating companies, while providing them with access to an array of technologies such as robots, sensors etc. It involves either fiat currency or cryptocurrency such as Bitcoin or Ethereum.
A stock transfer origination involves transferring shares from an investor to the buyer. This is a very common type of transaction origination, and it can even include other forms such as options or bonds. You will be required to create a separate account for this transaction origination and will only need to upload the necessary information such as:
Proof of Shares: This is important because it proves that you actually own the share that you are transferring.
Contract: This shows that you have agreed to transfer your share into the hands of the buyer. It must be uploaded in a PDF format, which can easily be converted into scanned images.
Proof of Address: This is important because it shows that the address where the share was originally sent to is where you are currently located.
Proof of Identity: This shows that you are who you say you are and also proves your residence at this particular address. A picture will be required and must be uploaded as a scanned image.
Financial Advisors and Transaction Originators
The goal of a financial advisor should be to find investors who are long term or permanent additions to their business. Long-term investments are considered by many to be more stable for advisors because they are able to take advantage of compound interest by locking in clients for longer periods of time. Transaction originators are the people who guide clients through this process. They identify needs, the potential to fulfill those needs, explain how to meet those needs with investments, and execute trades so that they can automatically receive compensation.
The role of financial advisors has changed over the last few years due to the rise of robo-advisors (or automated investment products) and other electronic investments like ETFs (exchange traded funds). While most financial advisors still recommend that their clients use them, many are choosing to focus on transaction origination instead. They know that transaction origination is far more profitable than selling any other kind of investment product because there is no limit on how much your client can make or lose with these products.
How Fintalent Can Help With Transaction Origination
Good transaction originators must know exactly what they’re doing. It’s not uncommon for new advisors to refer their clients to other new advisors just because they don’t know anything about transaction origination. New advisors are taught to be compassionate and to help their clients find a solution for their problems. This is not what makes them profitable. What makes them profitable is when they do it in a way that gets their clients to pay and commit to further investments. Financial advice is a very sensitive area of life because people tend to be very emotional about their finances and anyone charged with this responsibility may only have one chance to make an impression. It is therefore important that businesses put their best leg forward by entrusting this responsibility to seasoned experts be it freelancers as can be hired from Fintalent.
Long-term investments like retirement accounts and insurance, are difficult to sell because there is no prospect for large rewards and there’s plenty of competition from organizations that offer high commissions for investment products that are not very profitable themselves. The actual transaction origination business is much more profitable because it’s highly competitive, and highly capital intensive which underlines its importance. Businesses can therefore avail themselves of expert opportunities to hire experienced hands in undertaking this responsibility.
