Wealth management firms that have embraced a comprehensive business intelligence (BI) program can:
- mitigate operational and regulatory challenges across the firm;
- gain visibility into investment analytics, client relationship management, performance reporting, compliance, and contact management; and
- generate more comprehensive management and client reports.
On the other hand, wealth management firms with a more limited set of BI capabilities can typically generate only reports and analytics that limit them to identifying and addressing specific business problems.
BI can be used to benefit numerous groups in a wealth management firm, and the number of use cases is endless.
- Customer knowledge: Aggregating and combining internal and external data sources for a holistic view of the client and household. Additionally, using advanced analytics can improve client and advisor service, thereby increasing retention and aiding in cross-selling opportunities.
- Performance reporting: Providing performance information, which is the single most critical factor investors look for in their statements.
- Investment research: Discovering, developing, and testing investment ideas and strategies.
- Efficiency: Eliminating the manual data entry required to prepare for client reviews, which would create more time for client service, marketing, and gathering referrals.
- Risk management: Analyzing and managing new and changing regulatory reporting requirements, in real or near real time.
- Legal, risk, and compliance monitoring: Uncovering violations and maintaining portfolios on an ongoing basis, using a larger data analysis dragnet, ultimately reducing the chance of a messy audit down the road.
In our newest financial services guide, we discuss many aspects of BI, particularly in wealth management:
- Challenges of BI user adoption
- Characteristics of an ideal BI candidate
- Getting started with BI
- Key considerations for the development and operation of a BI program
- Client success story
To learn more, download the guide here.