The integration of big data into wealth management is revolutionizing industry. With technology now capable of processing data at unprecedented speeds, advisors have newfound opportunities to unearth insights and offer client solutions, which are previously overlooked without asset management data analytics. Every wealth management company relies on a several critical applications, including financial planning, trading, reconciliation, reporting, custody, and CRM among others. These applications developed on various platforms or acquired from third-party vendors over a period, often lack efficient connectivity and communication without adequate technological support. As a result, the productivity of the firm’s advisors is hindered.
Advisors lose valuable time when unable to efficiently utilize essential data for value-added services such as estate planning, tax advice, insurance, and other services. Enterprises must address this issue by integrating data services into a unified platform. This platform should provide access to the information necessary for delivering attentive, differentiated client service—an imperative aspect of client retention and acquisition.
Data Silos Pose Significant Challenges to the Finance Industry
As per a recent report by WBR Insights, 54% of financial institution leaders recognize data silos as a major barrier to innovation and maintaining a competitive edge in the market. These silos restrict the extraction of data across the enterprise and impede the development of long-term strategies and growth opportunities.
Financial institutions can mitigate silos by unifying customer data through data analytics in wealth management, thereby creating a comprehensive understanding of each customer. Simplifying the banking experience satisfies both wealth management advisors and customers, particularly with complex product origins like commercial lending, where access to data stored within the enterprise becomes unnecessary. Consolidated data can also offer unique insights for tailored product and service recommendations, enhancing the banking experience without requiring additional staff resources or time.
Lack of Integration Stunts Business Growth
Refinitiv research indicates that advisors who integrated digital tools into their practices experienced a 74% surge in assets under management (AUM) and a 77% boost in client retention. With digital tools such as data analytics for asset management, advisors gain deeper insights into their client’s financial situations. This enables advisors to offer more personalized guidance not only on portfolio management but also on important life priorities such as college planning, elder care, purchasing a dream vacation home, or organizing a once-in-a-lifetime trip.
McKinsey’s recent report revealed organizations that fully leverage the power of their data are 23 times more likely to acquire new customers, demonstrating the effectiveness of personalized and data-informed services.
How does Integration Benefit Wealth Management Advisors?
Advanced algorithms continuously learn and adapt from constantly evolving data. For example, machine learning analyzes vast volumes of text from diverse outlets.
The data derived from machine learning may encompass:
Topic modeling: Summarizing extensive text volumes into understandable thematic topics for humans.
Intercompany momentum: Identifying nuanced connections between companies that might evade human perception, and analyzing how the performance of one company impacts another.
Sentiment analysis: Discerning the sentiment—positive or negative—within vast textual content such as research papers, news articles, and reports.
Conventional data aggregation methods lack the scalability to provide such insights. With access to sophisticated tools, advisors can uncover potential opportunities for their clients. However, it’s crucial to recognize that while data analytics may underpin active wealth management, it remains an active process. An advisor’s expertise, market knowledge, and human judgment are crucial factors in determining how a client’s assets are ultimately invested.
Empowering Hyper-personalized Experiences
A unified data framework provides wealth advisors with invaluable customer insights. Today’s AI-based integration technology can centralize a customer’s data regardless of their banking relationship and help deliver holistic insights in real-time. This allows the advisors to listen and engage with the customer seamlessly, fostering an environment conducive to cultivating deep trust and customer loyalty.
Fully automated integration harnesses data unification, enabling powerful customer narratives to emerge, empowering bankers to identify opportunities to improve their institution’s customer relationships. By consolidating and organizing customer information in a single location, financial services leaders can easily access and generate intelligent insights, pinpoint risks, and opportunities, and offer timely, personalized customer recommendations. These recommendations contribute to the growth of account holder relationships, bolster deposit retention, and enhance acquisition efforts.
In a fiercely competitive industry, the ability to adapt to market changes swiftly and efficiently is paramount. Through a collaboration with Boomi, LevelShift provides customized product delivery and client relationship management strategies. This approach, supported by unified data integration, empowers financial services leaders to strategically guide their teams in delivering consistent quality, alleviating pain points, and ensuring exceptional customer experiences and outcomes.
