Financial Advisers Need A Single Data Source, Not Fragmented Systems

You’ve probably been collating data in multiple places for years – a CRM, cash flow planning tool, document storage, risk profiling tool, etc.

The industry has largely accepted this model as normal, but when you think about it objectively, it’s like going to a grocer for veg, a butcher for meat, a baker for bread and we know what happened to them when supermarkets came along!

We’re now in an age of increasing data scrutiny by the FCA, rapidly evolving AI technology and tech savvy clients who want faster response times. These pressures aren’t going away, they’re only going to get worse. You need to be able to respond quickly and efficiently to the regulator’s data requests and produce quality outputs that improve client outcomes. That just isn’t possible when your sources of information are so fragmented. ‍

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The foundation of good advice

Every recommendation a financial adviser makes depends on the information you’ve collected. Client objectives, risk tolerance, pension arrangements, meeting notes, the list goes on. For most, there’s no lack of data. The problem is too much of it is stored in too many places.

When information is fragmented across systems, advisers spend significant amounts of time rekeying it, checking records, reconciling differences and searching for documents. Every manual process creates risk, every duplicate record is an opportunity for inconsistencies to arise and every disconnected system can force errors.

The FCA increasingly expects firms to not only do the right thing by clients, but also be able to demonstrate that’s what they’ve done. Records that are inconsistent can be worse than no records at all.

If the regulator came knocking, could you answer the following questions?

1. Why was this recommendation made?

2. What were the client's objectives?

3. How has their situation changed?

4. When was their risk profile last reviewed

5. What ongoing service was delivered?

Providing this information requires structured and accessible records that you can access quickly and consistently. You can no longer rely on spreadsheets, PDFs, email trails and staff memory. The ability to evidence your work is now as important as delivering the advice.

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Disconnected systems: the hidden costs

When advisor firms evaluate technology, they focus on licence costs. The operational cost of maintaining multiple systems is often overlooked.

Let’s consider what happens when a client tells you their circumstances have changed. Information may need to be updated across your:

·        CRM system

·        Financial planning software

·        Client portal

·        Suitability report tools

·        Document storage system

·        Marketing platform

It can take hours of staff time to enter the same information repeatedly and open the door for errors to be made. The true cost of your technology stack is not the licence fees, it’s the time lost to administration that could be used serving clients.

AI is exposing the problem

AI is only as good as the information fed into it and when that data is spread across multiple systems, it can only see pieces of the client story. The result is incomplete context and unreliable outputs.

AI doesn’t solve poor data architecture; it shines a light on its weaknesses. The firms that will benefit most from its abilities during the next decade will not necessarily be those with the most tools. It will be the ones with organised data. When that exists within a unified platform, AI can operate with far greater accuracy and context. This time, the result is outputs you can have confidence delivering to clients.

When its working from a single point of truth, AI can provide:

·        Better insights

·        Better automation

·        Better client experiences

·        Better advice outcomes

AdviceObjects is built differently

Our platform is designed around one simple principle: Instead of forcing you to connect multiple products, we bring everything together in a single environment. This includes:

·        Client onboarding

·        Fact finds

·        CRM

·        Financial planning

·        Cash flow modelling

·        Risk profiling

·        Document management

·        Client portal

·        Suitability reporting

·        Workflows

·        Tasks

·        Communication

·        Valuations

·        Reporting

Because all this information sits in one place, unnecessary rekeying and duplication is completely eliminated. More importantly, every part of the advice process is connected, allowing you to build a complete and accurate picture of each client relationship.

We believe technology should simplify advice, not make it more complicated, yet many firms have unwittingly created an environment that requires constant maintenance.

The future is not about adding more systems, but consolidating them. Creating a single, trusted data source allows you to improve efficiency, strengthen Consumer Duty processes, reduce duplication, prepare for AI and ultimately, deliver a better client experience.

Start treating your data as an asset. Get the structure right now, by bringing together your fragmented systems, and you will be set up for what is to come.

Our founder, Uday Nimmakayala, presented a one-hour CISI webinar last year that explains how single-source systems typically outperform multiple-source ones. It is now free to watch on YouTube here.

For more information about how AdviceObjects can simplify your systems and processes, don’t hesitate to contact us for an initial discussion or demonstration. Alternatively, email: contact@adviceobjects.com