Data Integration Is Crucial For Wealth Managers Looking To Expand And Enhance Service | #insurance | #seniors | #elderly
To meet evolving client demands and acquire new assets in a competitive industry, many advisors are diversifying their offerings and providing clients with more service options. According to a study from Schwab, in 2014, just 67% of RIAs with more than $250 million in AUM offered charitable planning services. By 2018, that number was up to 79%. Similarly, while 68% of those RIAs offered tax planning and strategy in 2014, 74% provided this service four years later. The expansion in services illustrates the extra effort taken by advisors to deepen their relationships with clients.
Offering more options and more diverse services requires advisors to use more data, a challenge when many work from multiple apps, platforms and programs that lack centralized integration. With new applications added to address new service offerings all the time, advisors may struggle to efficiently access and utilize the data they need to take the next step toward holistic planning and wealth counseling.
Without the ability to efficiently leverage the data necessary for added-value services such as estate planning, tax advice, insurance and concierge services, advisors lose valuable time that could be spent serving existing clients or working to grow their businesses. To address this issue, enterprises need data services integrated into one platform that provides access to the information necessary to deliver attentive, differentiated client service—a key part of retaining clients and attracting new ones.
How A Lack Of Integration Affects Business Growth And Client Outcomes
According to Refinitiv research, advisors who incorporated digital tools in their practices saw a 74% spike in assets under management (AUM) and 77% increase in client retention. Using digital tools enables advisors to better understand their clients’ financial lives. This can help advisors provide more thoughtful guidance not only on their clients’ portfolios, but also on priorities such as college planning, caring for an elderly or disabled family member, buying a dream vacation home, or planning a once-in-a-lifetime trip.
Without accessible data analytics, advisors cannot see the full picture to guide and coach their clients on their broader objectives, and the process of manually analyzing client data from multiple apps and sources is both time-consuming and rife with potential oversights. What if you’re not looking for the right things? What if you miss an important piece of information about a client’s life, family circumstances, spending behavior or short-term objectives? Busy advisors simply do not have the time to do all this data gathering themselves when, to keep their clients happy and grow their business, they need to prioritize relationship management.
What Does Truly Integrated Data Service Look Like?
A recent PWC study found that wealth management is one of the least tech-literate sectors in financial services, often due to lack of data integration. And while some technology platforms have attempted an integrated approach to handling data, what they consider “integration” is, in many cases, incomplete at best.
True integration requires all the data sets to be combined and cleaned in a single cohesive set, so advisors can quickly pinpoint the most accurate and insightful data possible.