Unlocking the Value of Data in Wealth Management 2021


Wealth Management is undoubtedly in a period of constant change, motivated in part by changing investor preferences, regulatory developments, and evolving technologies.  As Wealth Managers formulate business and technology strategies, discussions on a variety of areas ranging from how best to select suitable solution partners obtaining the most accurate data, and, choosing the best deployment option.  Additionally, increased interest in advanced analytics has become a reality for many firms as they are making use of intelligent tools and insights to improve their operating models, investment performance, and efficiency at the front, middle and back offices.

Sorting out, and making an incentive from, your information is generally a matter of setting assumptions, posing the correct inquiries, and building frameworks and cycles that empower your information to turn out better for you. This practical guidance will assist with changing your raw data into noteworthy and reliable information for use in decision making processes.  

Operational areas such as research and, practice management are likewise changing because of the utilization of new analytics tools that are leveraging both internal and alternate sources of data. Terms like big data and advanced analytics are now part of the regular discourse amongst business executives and routinely appear in Industry conferences.  Recent market Intelligence and social networks opinions have also presented the notion of robotics affecting asset management.  

Sustainability systems acquire and manage data from numerous sources on a daily basis. Such data can include:

  1. Compliance data, such as audits, client metadata and data on non-conformities.
  2. Research data from monitoring and evaluation teams.
  3. Commercial data, such as product sales and volume of products sold.

However, carefully managing this data can yield some useful insights that can better support decision making internally or by users/partners of your system.

Applying advanced analytics to business problems is delivering value for financial services, empowering managers with data to make quick, reliable decisions. Based on recent research a great number of Quant firms are incorporating new analytics for operational efficiency. Others are using data and advanced analytics toward a more data-driven method to sales and marketing. Use cases ranging from better investment decision-making to increasing productivity in the middle-and back-office are being observed.  

The Wealth and Asset Managers that are gaining significant value from data and advanced analytics are focusing their efforts on key aspects of the business where impact is measurable.  Sponsored by the Business, they are prioritizing efforts based on expected business value, engaging cross-functional and internal stakeholders skills covering a wide range of areas such as operations, technology and, compliance.  They have a huge opportunity to collect, manage and analyze data in ways that enhance investment decisions, risk management and regulatory compliance. While it is still early to predict exactly how analytics will influence the industry overall, it is nonetheless a key differentiator which cannot be overlooked as the technologies evolve.  

Wealth Management Focus Areas 

Following are some areas of focus at many firms as the discussion continues:

  • Planning for how analytics is to be integrated into current workflows, understanding the projected end results, involving key influencers (e.g., Advisors, data, and analytics talents) is vital to deliver business impact.  The aim of data and analytics starts with the creation of an integrated target-state vision across data management and governance, analytical tools, technology deployment, and business adoption. 
  • Risk management. As organizations expand their digital footprint, their risk profiles change and create more points of vulnerability to threats of cyberattacks. Robotic process automation (RPA) is also able to handle significantly more transactions than humans and can be leveraged for compliance and internal audit checks and balances.  
  • Improving productivity. Asset managers are using analytics, specifically predictive algorithms to identify actionable client insights and, help enhance sales and marketing efforts.   These algorithms have proven to have greater accuracy in sales results for those using these analytical tools.  

Foremost, at the core of Wealth Management is the client. Advanced Analytics equips the Wealth Manager with relevant tools for reliable portfolio management and to contend with increasing markets and products complexity. The accessibility to data analytics allows for predictive models that benefit Wealth Managers in decision making. Using sources of data enhance the value of financial planning and ultimately help Wealth Managers deliver improved services to clients such as Retirement planning, help to understand Risk profiles, to attain certain Goals for short term liquidity cash flow, etc. In the next few years, the use of advanced analytics will continue to help raise productivity across the Investment world. 

How Can We Help?

At Valsen Fiduciaries Group, we are at your disposal to discuss how you or your corporate structure and leverage from the value of data in wealth management. Please contact us through [email protected] or +248 2 525 217



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