TECHNOLOGY IN YOUR BUSINESS
UNLOCKING THE VALUE IN YOUR CLIENTS ’ DATA TO IMPROVE YOUR FINANCIAL ADVICE PROCESS BENEFITS BOTH YOUR BUSINESS AND YOUR CLIENTS .
making at a management level . Once you ’ ve established a clear understanding of what data already exists within the firm , the quality of the information and how and where it is held , it will be easier to create a robust data strategy that gives your data due prominence on a par with your other critical assets . Then you can ensure that everyone within your organisation understands the importance of data throughout the business and their own role in safeguarding the accuracy and consistency of that data .
Identifying data As a starting point , make sure each data set that you hold is properly identified . It should have a name , defined format and value representation . At its most basic level , client and plan data should be logged consistently , including formatting names , inputting correct plan numbers in the way your provider registers them , and ensuring that all relevant information on a client or plan is accounted for . Depending on the current quality of your data , this is a potentially time-consuming project , but it is worthwhile in the long run . Ensuring that there is a consistent process for recording information will help the analysis process and avoid wasting time correcting details further down the line . Inconsistent identification of data creates huge inefficiencies – for paraplanners trying to generate key client documents , for advisers preparing for face-toface meetings , and for management in trying to obtain MI reports . By making your data easily identifiable , you can effortlessly call upon it for reporting purposes and share it where necessary .
Sharing data Used effectively , data drives many new business decisions and initiatives and can be shared by several different systems . Connecting these multiple systems and tools with straight-through , automated processes reduces friction , and cuts the need for manual intervention , creating efficiencies . Tools can also help with the visualisation of data and financial goals , clearly illustrating to clients where their finances are now and where they need to be to fulfil their financial goals , encouraging better engagement with their financial plan . Our report last year with the lang cat , ‘ Better . Stronger . Faster . How Do We Rebuild Centralised Investment Propositions From Here ?’, found that four in ten advice firms ( 37 %) surveyed said deeper integrations between different systems and tools were a priority , while the same number ( 37 %) had ambitions to do this at some point . However , creating these integrations and taking advantage of all the benefits third-party tools and solutions can offer is only possible if your data is held in an accessible format . If it cannot be easily shared , this slows down processes and makes certain tools and partners inaccessible . Historically , the type of application dictated how data collection was organised and stored , with little thought of sharing across multiple systems , but using a modern back-office system should avoid some of these issues . Here , the way data is stored should enable seamless and secure data sharing with integrated external solutions , such as platforms , asset managers and third-party tools . Data generated by these third parties should also be easily transferred back to your business to enrich your advice process . Your data strategy needs to consider this two-way sharing of data – how will you make it available to third parties and how will you receive it back from third parties to put it to use ?
Ensuring accuracy GDPR and MiFID II require advice firms to ensure the accuracy of the client data they hold but minimising errors is crucial for the firm , too . Processing inaccurate or unnecessary data not only means you could fall foul of the regulations but will also result in inefficiencies in your advice process . So , how can you ensure accurate data going forward ? Using workflows , which allow you to establish internal processes , can help . Once established in your back-office system , the workflow will flag when errors have been made in a process . By ensuring the data is accurate and consistent up front , it can be used with confidence throughout the advice journey . Creating integrations with third parties that automate data completion also avoids the risk of human error when re-keying information , so the data stays correct and consistent throughout all systems .
Storage How you store your data has an enormous impact on the rest of the steps in your data strategy . It needs to be easily accessible , easily shared and easily used across your advice process . As we are increasingly moving to a paperless way of working , physical storage of client data is becoming less acceptable , especially from a security and disaster recovery point of view . How would you recover paper copies of client information if they were destroyed by fire or flood ? Working on different documents that have been stored on individual hard drives is also asking for trouble . How do you know if the information you are working on at the next client review is the most up-to-date version ? Keeping duplicate documents can also add to storage costs . Storing documents centrally in the cloud is a sensible strategy here . It ensures that there is just a single electronic version of the client data , which can be accessed by anyone ( who has permission ), from anywhere the firm deems appropriate . Hierarchies or ‘ allow rules ’ mean you can restrict who can see what information , ensuring adherence to GDPR ’ s rules . Data is also encrypted , removing the security risk of paper documents or data stored on individual devices . Big tech brands like Microsoft , Google , Apple , and Amazon offer low-cost options to hold your data safely and securely – many of us already use this facility for personal storage of music and photos . Specialist software for business is also likely to come with its own cloud storage and whichever service you use , the data will remain secure to prevent access by anyone not given permission . However , you must read the small print to make sure your data remains yours , to remove any barriers should you wish to move providers in the future . Unlocking the value in your clients ’ data to improve your financial advice process benefits both your business and your clients . A more streamlined service enables clients to interact with the advice process and their adviser more freely , offering you deeper insight into their financial lives and helping you build a stronger relationship . P
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