For wealth management enterprises to offer additional integrated services, their systems must present a client-centric data model that offers a complete, easy-to-understand snapshot of the client’s financial life. These integrated data systems help an advisor see a client’s portfolios, insurance policies, bank accounts, retirement plans, real estate holdings, mortgages, credit card debt, education bills or debts, etc., accurately, all in one place.
How Does Integrated Data Help Advisors?
The benefits of an integrated data system go beyond giving advisors a more personal touch. According to a research study from Michael Kitces, the average financial plan takes 15 hours to create and a least three client meetings to finalize. Most advisors who participated in this study relied on many applications to supplement the writing of these plans. All the data system multitasking is a serious productivity drain.
Systems with a single, unified data fabric allow advisors at broker-dealers and roll-up RIAs to service clients in a broader, more interdisciplinary way. In addition to more efficiently creating financial plans, managing day-to-day tasks, prepping for client meetings and addressing incoming requests,advisors can also better coordinate tax advice, estate planning, charitable giving and other value-added services.
Advisors who use aggregated data sources from a single data fabric are also more prepared to keep their client portfolios on track, as they can rely on timely, precise and streamlined data updates to point out subtle nuances they may have missed on their own, allowing the advisor to take action both reactively and proactively. Tasks such as creating customized, accurate and fully consolidated up-to-date reports on demand are only possible through true integration.
Looking ahead, the need for data integration will continue to accelerate—for both financial advisors looking to attract more clients, and clients who expect more from their advisors in terms of enhanced service offerings, thoughtful counselling, attentive communication and achieving their long-term objectives.
To navigate the often-choppy waters of investing and planning, wealth management firms need to anchor themselves to a reliable, unified data platform that integrates and delivers information in a way that makes advisor workflow and client relationship management more efficient. A unified data fabric provides a strong foundation and makes a difference for wealth management enterprises looking to scale.
Rich Napolitano is CEO of Advisor360.