In this Guest Column for Financial Planning Today, Robin Bevan, CEO of fintech and FINIO data hub provider Sprint Enterprise Technology, shares his years of experience in data management to discuss how Financial Planners can manage data better and unlock its power without breaking the bank. 

Data is a hot topic in wealth management board rooms and for very good reasons.

It’s not an understatement to say that, in a sense, it’s the ‘new oil.’

Done well it will drive better business decisions, better client outcomes and efficiency. Get the data piece right and many business challenges can be solved and opportunities created.

But what can Financial Planners, advisers and wealth management firms do to take advantage of a world where data underpins all that we do?

Here are half a dozen things all firms could, or should, be doing based on my years of experience in working with wealth managers.

First, take a look at where data is being manually uploaded/rekeyed in your company – and go back to the source of the data, typically the platforms you use and demand that integrations be enabled with the software tools that you use. The rekeying of data should be consigned to history for good – the tools are there for platforms to bring about the integration required.

Second, think about where you want your ‘golden source’ of data to be. More often than not, it will be your CRM – but also ask does your CRM allow you to access the data in a way that you need and what happens if you want to change CRM in the future. It might make more sense to host your data independently of your CRM.

Many of the larger wealth management firms are doing this; there’s no reason why smaller firms shouldn’t follow suit.

Third, consider where you will get your data from. Traditionally, wealth management firms have relied on their CRM to gather valuation data from product providers/platforms – but data hubs such as Origo and our own system, FINIO, are making data much more available. Many firms are now sourcing a direct feed of platform data from these new hubs.

Fourth, be aware that data in some CRMs is not quite as accurate as you might like to believe. Recent research we carried out showed that 6 out of 10 contributions and withdrawals recorded in one of the industry’s leading CRMs were incorrect. Either the amount was wrong or the date was wrong. Get someone to look under the bonnet and assess the quality of your data.

Fifth, consider experimenting with an off the shelf analytics tool like Microsoft's Power BI – these easy to use and relatively inexpensive tools allow you to ‘slice and dice’ your data in powerful ways that may well provide insights for your business. They could also help with the delivery of more accurate and informed advice to your clients.

Analytics is no longer the preserve of firms with large IT departments and budgets – a combination of a tool like Power BI and a data feed from a data hub might be all you need.

Finally, if you have not done so already, then develop your own data strategy – and keep this under regular review.

I'm certain that those firms that harness the potential that data offers will have a competitive advantage over those that do not. But recognise that it may affect all the systems that you use, so careful planning is essential. 

Robin Bevan is CEO of Sprint Enterprise Technology which provides the FINIO Data Hub, a service designed to help wealth managers manage data better.

https://www.sprintenterprise.co.uk/