Dive into data

We take data quality seriously at Advisor360°. As many readers know, our proprietary Unified Data Fabric (UDF) aggregates and cleanses all types of data from hundreds of financial institutions to deliver insights that advisors and firms use to improve productivity and customize the experience for their clients. ?

It’s not surprising, then, that advisors take data seriously as well. According to our 2024 Connected Wealth Report, 61% of respondents agree that “bad data” is the primary technology obstacle they face today. It’s clear that data quality is a cornerstone of efficiency and a key to enabling trust and deeper client relationships.?

Our contributors this month have some impressive, field-tested insights on the role data plays in wealth management today, and they paint a vivid picture of the future. Read on to learn what Shannon Rosic, Nicholas Stuller, Erick Crowell, and Claude Denton have to say about how firms are positioning data as a competitive advantage, and the challenges they face when it comes to utilizing data.?

Enjoy this edition of Connect360° newsletter—and please leave a comment and follow us on LinkedIn to join the conversation.?

Cynthia Stephens?

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The competitive edge?

We asked our contributors how they believe enterprise wealth firms can leverage data as a competitive edge—and their answers did not disappoint.?

According to Shannon Rosic, Director of WealthStack Content and Solutions at Informa, firms can leverage data “as a significant competitive advantage by transforming how they operate, make decisions, and interact with clients.” Rosic went on to add, “defining data is table stakes. Owning it and understanding it is what ultimately matters. Firms have the opportunity to utilize their data as a strategic asset, and the ones that get their data strategy right will unlock positive business outcomes.”?

Advisor360°’s Vice President of Data Platforms, Claude Denton believes, “Data is core to any enterprise wealth firm—clean financial data and strong reporting capabilities are foundational for supporting clients. Integrating data from all aspects of a wealth practice can create a competitive edge. From identifying opportunities across CRM and financial data, to instantly providing context within case workflows, integration and analysis can turn information into insight.”?

Erick Crowell, Senior Director of Product Management at Advisor360°, crystalizes the connection between data and AI, saying, “AI-driven insights will enable wealth firms to provide hyper-personalized investment recommendations, bolster risk management, drive more informed decisions, and significantly boost operational efficiency.” He says that wealth managers can benefit by “tailoring investment advice to individual client needs and goals, making strategic decisions based on market patterns and trends, and safeguarding client investments.”?

While utilizing data as a competitive edge seems like a no-brainer, it’s important to think about how firms can achieve this feat and what challenges they may encounter along the way. Rosic told us that firms must foster a culture that “values data-driven decision-making across the organization” and mentioned ?several strategies through which data can be used to gain a competitive edge, Including: ?

• Risk management?
• Operational efficiency and automation?
• Market insights and investment opportunities?
• Client acquisition and retention?
• More informed decision-making?
• Regulatory compliance and reporting?

“Having the ability to harness data will allow firms to turn it into knowledge about the needs of their clients,” Rosic concludes.?

“Data is core to any enterprise wealth firm.”—Claude Denton?

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The use case?

As we heard in the perspectives above, it is imperative that firms leverage data as a competitive advantage. However, figuring out how to utilize data to improve client service and personalized advice is another story altogether. ?

Nicholas Stuller, Founder and CEO of MyPerfectFinancialAdvisor, told us his firm uses data to connect investors with advisors. “Data and our algorithm are at the heart of how we match. Aggregate data and metadata allow us to see how advisors and investors compare to each other across segments and we can use that insight for future product development, service, and benchmarking.”?

According to Crowell, the emergence of AI and NLP technologies means that “clients will soon expect firms to hyper-personalize the planning and advisory services they provide—tailoring investment portfolios to be finely tuned to each client's distinct preferences and needs, and delivering timely advice to achieve both long-term objectives and immediate financial requirements.”?

Furthermore, Crowell says that data will play a critical role in compliance monitoring, enabling firms to proactively tackle potential regulatory challenges and safeguard their clients' best interests. ?

Rosic adds, “it’s no longer about having vast amounts of data, but about harnessing that data to identify actionable insights and make more informed, strategic decisions.”?

“It’s no longer about having vast amounts of data, but about harnessing that data to identify actionable insights and make more informed, strategic decisions.”—Shannon Rosic?

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The challenges?

Emerging business tools are seldom easy to implement and using data effectively is no different. ?

As Crowell explains, “when it comes to making the leap from data to insights using AI, the biggest factor holding companies back today is the quality of their data.”?

Denton agrees, saying “there are real technical challenges in reaching the next levels of normalizing and cleaning data across custodians, and then connecting that data to CRM and other activity. The next-level challenge is automatically generating insight from data. That involves application of AI and machine learning techniques, and a meaningful and committed application of resources to talent acquisition and research and development.” ?

Stuller is focused on a few different challenges firms face in effectively using data to gain insights and make strategic decisions. “The explosion of fintech solutions, coupled with pending and potential legislation around data privacy, along with the growing volume of available data all make it challenging to decide what to prioritize.”?

He suggests that good data practices are critical for the optimal us of AI. For example, “if a firm wants to use a particular AI tool on a data set, if there are no rules, normalization or protocols on that data, results will be lacking.”?

As Rosic notes, “a looming challenge is the rapid proliferation of data and the need for efficient and accurate data consolidation. Before they can use data effectively, one of the biggest impediments firms will face is consolidating and centralizing data from multiple systems and platforms.”?

Crowell sums it up nicely, saying “many firms need to cross a chasm of culture and talent deficits to transform themselves into data-driven organizations, guided by insights and augmented with AI and Automation. This involves more than just putting data and analytics in front of people, it’s a cultural transformation, which means there is resistance to overcome, training and skill gaps to fill, and strategic need to promote new levels of data literacy across the organization. Addressing these challenges requires a comprehensive approach that includes investing in technology, talent development, and robust data governance practices.”?

“When it comes to making the leap from data to insights using AI, the biggest factor holding companies back today is the quality of their data.”—Erick Crowell?

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Please leave a comment and let us know how you enjoyed this conversation around data. See what other industry experts are saying about data here.?

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About our contributors:?

Shannon Rosic, Informa??

Shannon Rosic is the Director of WealthStack content and solutions and has a decade of experience as a B2B fintech marketer, content producer, and on-camera presenter. Host of the WealthStack podcast.?

Nicholas Stuller, MyPerfectFinancialAdvisor?

Nicholas Stuller is the Founder and CEO of MyPerfectFinancialAdvisor, a matchmaker between investors and financial advisors. Nick is a 35 year veteran of financial services spanning the fintech, custodial and compliance sectors.?

Erick Crowell, Advisor360°?

Erick is an innovative product leader with a passion for driving client success through technology and wealthtech solutions. At Advisor360°, he leads the Data Product business line, delivering next-generation data enrichment and analytics products that significantly boost client productivity and enable hyper-personalized service and outcomes.??

Claude Denton, Advisor360°?

Claude Denton is Vice President of Data Platforms at Advisor360°, developing products that unify, enrich, and illuminate data to help wealth management firms better serve their clients and grow their business.?

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Learn more about data here: ?https://www.advisor360.com/solutions/ai-connected-wealth-report?

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