3 Ways Access to Financial Data Improves Value For Wealth Management Customers

3 Ways Access to Financial Data Improves Value For Your Customers

Here’s how access to financial data improves value for wealth management customers.

Wealth management firms have seen an increase in the global wealth management market over the last few years. Wealth management is expected to grow to $1263+ billion in 2021 at a compound annual growth rate of 8.7%. One of the major reasons for this significant growth is that organizations have effectively dealt with the impact COVID has had on their business by reorganizing operations to place a greater emphasis on digital transformation and investing in big data analytics capabilities to generate insights to enhance service offerings and improve overall client experience.

It’s common for wealth management firms to plan, advise, and manage assets across a varied service offering, such as financial and investment advice, retirement planning, and estate planning – as such, your wealth management firm needs a digital strategy to succeed and provide long-term, sustainable value to clients. Services that democratize access to financial data empower your firm, and your advisors, to gain an enriched, holistic view of your customers in order to provide them with the value they deserve.

Wealth management firms are investing in big data

Globally, wealth management firms are investing in “big data” to enable their growth and scale. Investing in financial data on your customers is a top way wealth managers can grow channels across sales, support, and client expansion effectively. Maintaining your customers’ data digitally empowers your firm to access real-time and reliably accurate data on your clients, while also keeping this important information secure yet accessible across your firm.

As per Nasdaq, “The latest generation of high-net-worth clients is increasingly likely to consider digital channels for managing their wealth.” says Brett Henderson of Henderson Wealth Management. It’s time to go digital now to improve your wealth management offerings to your clients. Below are three of the main benefits of having access to digital financial data.

1. Provide better security

Access to financial data provides historical and holistic insights into your customers’ financial lives. This means that you can provide improved security to your customers based on their financial health and wealth management monitoring. The security your firm provides can come in the form of understanding a customer’s risk tolerance, previous investments, and other interests based on their financial history provided through data.

Beyond the above, you can also ensure that all data is accessed digitally and that no paper documents or documents shared via e-mail and other less secure channels take place at your firm. Additionally, how you store your customers’ data matters, so providing additional protection and compliance via security protocols is key for improved security.

2. Provide better advice to customers

Knowing what your customers want, or rather need, and when for their wealth management strategy is key to maintaining client loyalty. Providing advice that is personalized to your customers can be both time-consuming and overwhelmingly challenging without having access to financial data. Quality data allows you to segment your customers and provide the best advice and planning to their specific needs – which is exactly what your customers want in order to continue investing with your firm.

3. Make future predictions

Accessing historical financial data on commercial operations allows your firm to make future predictions based on the success and decline of various industries. Beyond that, understanding your clients’ overall financial history to know how to best predict their future investments will improve their confidence in the service offerings that your advisors and wealth managers are able to provide.

To put it simply, wealth management firms need a wealth of knowledge to be able to offer the best value to both new and existing clients looking to invest in their future. In order to better understand your customers and provide the best service you possibly can, it’s critical to gain and maintain digital access to historical financial data.

Having digital access to data you need to scale your firm’s operations across big data collection and security allows your back, middle and front offices to continue improving the level of service offering while making better future predictions for your customers and their investments.