Nobody would ever question the importance of data when it comes to tackling the global health crisis (when to open up vs when to lockdown), and the world of wealth management is no different. There is no doubt that wealth managers have made significant strides in terms of their sophisticated use of data in recent times. However, as high-net-worth clients continue to put a greater emphasis on high quality service levels, it has never been more important for wealth managers to continue to make the most out of their data.
According to the Accenture 2021 wealth management report, firms are looking to expand out from the traditional transaction-led trading offerings by developing data-driven innovative services that deliver more personalized experiences. Providing an in-depth and personalised client service can only be achieved by ensuring the available data is put to the best use.
Take the movement of financial data relating to investable assets as a prime case in point. The reality is that whenever important information is moved across an institution, there is a chance something could go wrong unless there is detailed checking from the start, right the way through to the end of the workflow. Knowing what data has moved where and when is really the only way that wealth managers can get a true grasp of the results they are delivering to clients. Due to the fast-paced nature of markets, data changes as fast as it moves. This puts a huge significance on understanding the specific processes at work as well as interpreting the data accurately.
With so much information to manage across an organisation, it is becoming harder to understand exactly what the data is saying. Often a wealth manager may find themselves creating data for a trading situation, only for it to be used to solve a back-office issue. This is why it is imperative that there is a strong connection between the physical data and the business assets – otherwise things could become complicated very quickly. Once there is a thorough understanding of the data, selecting the right subsets becomes crucial in order to make the most informed decisions on behalf of investors. This can be challenging, particularly when there are breaks in the data. This is a problem that can escalate depending on the size of the dataset in question.
In order to manage these movement, transformation, and interpretation challenges, it is paramount that wealth managers have the best possible tools in place that provide them with accuracy, consistency, conformity, completeness and timeliness throughout the lifecycle of the data. Processing increasing amounts of data can become a costly exercise, which is why wealth managers need to constantly adapt to the changes driven by digital transformation and increased automation.
From greater provenance and data lineage – the industry as a whole needs to continue to innovate to drive standards forward. The sheer scale of information may not be something markets can control right now, but the source and traceability of data, including where it comes from and where it ends up, very much can be. After all, if a healthcare industry can learn from the importance of making decision based on in-depth data insights, so too can wealth managers.