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Blog: How data helps wealth managers unlock hidden customer value

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By: Kenneth Kuek, Business Development, InterSystems

Wealth managers have always been at the cutting edge of data collection and analysis to help your customers anticipate what happens next. In the past, there was a lot more guesswork. Financial services organisations used core client information such as transaction histories and holdings, along with a handful of metrics and informal communications from external sources, to triangulate insights about what kind of products your customers needed. The picture was incomplete and fuzzy, and often relied on assumptions.

Now wealth managers have access to a much wider range of customer touchpoints than at any other time in history. New financial products that use integrated digital services to collate and analyse customer activity create an avalanche of data for wealth managers to ingest. Trying to peer into the complexity and see patterns in this data to make predictions about the future has become a futile exercise for anyone still using yesterday’s systems and processes.

The upside is that, with new digital data analytics capabilities, wealth managers are well-positioned to unlock the true value of your customer data.

How digging deeper into data benefits wealth managers

With the abundance of data being generated by financial services businesses, it’s a waste to not use all parts of it. Insights from data about customer behaviour and preferences can be used as a natural extension of traditional product and service offerings. Modern platforms handle the collection, integration, and analysis of complex business data from many disparate sources. Through this capability, wealth managers can gain a 360-degree view of your customers, which delivers benefits such as:

  • improved decision support in real time

  • better compliance with industry regulations

  • stronger risk management and resilience

  • increased revenue generation capacity

  • enhanced responsiveness to operational requirements 

  • accelerated innovation and product development.

With the right set of financial analysis tools to make sense of the data, wealth managers can significantly improve how you map and align your firm’s services to the customer journey. For example, data analytics can be used to predict when your customer may need a loan based on their personal situation and the current economic climate, even before your customer realises the need themselves.

Automated data insights can also be used to trigger communications to your teams when key metrics hit a certain threshold score, which helps support forward planning. Integrating data insights about customer behaviours and business performance helps to optimise your products for better usability and uptake, and helps guide your decisions on where to focus efforts for the maximum return on investment.

How better product personalisation helps your firm stand out from the rest

Deep and timely data insights about customer interactions can inform a deeper understanding of your customer’s financial needs and goals. This means wealth managers can help your customers meet these needs and achieve goals more quickly and efficiently through the personalisation of products and services. This generates increased revenue for your firm as a result of a more customer-centric and hyper-personalised approach than has been delivered in the past.

Achieving this involves the collection, analysis and application of high volumes and varying types of data in real time to design products that better suit your customers’ constantly changing needs. Wealth managers who can pull a lot of external and customer data together in a single collated view will gain more insights into their customer’s needs and how they may be impacted by economic changes. This provides more confident decision making when it comes to longer term financial planning for each individual customer.

Data is also a critical barometer when making decisions that affect your business strategy and direction. It can provide deeper insights into market trends, customer sentiment, and operational capacity that combine to form a more comprehensive overview of your industry and broader economy. Traditional methods of data capture and analysis leave wealth managers with only a surface-level understanding, so it’s important to adopt automated solutions now that let you drill down into deeper, more complex insights to extract the true value from all your business and customer data.

This article was originally published on Medium by the InterSystems Publication on July 14, 2022. | Please click here to connect with Kenneth Kuek on LinkedIn.

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