The Role of Data Analytics in Wealth Management

James Robertson, Banking CIO Outlook | Thursday, March 18, 2021

Using advanced analytics to solve business challenges adds value to financial services by providing managers with the data they need to make fast, accurate decisions.

Fremont, CA: Changing investor preferences, regulatory trends, and emerging technology are all driving constant change in the wealth management industry. Discussions on how to better combine modern and legacy applications, selecting appropriate solution partners, choosing the best implementation choice, collecting the most reliable data, and complying with new regulations are commonplace as Wealth Managers develop business and technology strategies.

Furthermore, several companies are using intelligent tools and insights to enhance their operating models, investment results, and productivity in the front, center, and back offices, resulting in increased interest in advanced analytics.

Owing to the use of new analytics tools that exploit both internal and external data sources, organizational areas such as analysis and practice management are also evolving. Big data and advanced analytics are now popular among business leaders, and they are regularly discussed at industry conferences. The idea of robotics impacting asset management has also been discussed in recent business intelligence and social network opinions.

Wealth and asset managers who are extracting tremendous value from data and advanced analytics concentrate their energies on the market's critical areas with observable impact. They prioritize activities based on anticipated market benefit, engaging cross-functional and internal stakeholders' expertise in a wide variety of areas such as logistics, technology, and enforcement, and they are funded by the business. They have a tremendous opportunity to capture, process, and evaluate data in ways that will help them make better investment decisions, manage risk, and comply with regulations. Although it is still too early to say how analytics can affect the industry as a whole, it is a significant differentiator that cannot be ignored as technology advances.

See also: Top Data Analytics Solution Companies

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