Wealth management firms that understand the inner workings of their practices are better able to operate efficiently, comply with regulations, mitigate risk, and make smarter business decisions. The big question is how do you gain that deep understanding? By digging into data. Data analysis is crucial, but it's also overwhelming. Fortunately, business intelligence (BI) software exists specifically for this purpose, tailored to the unique needs of wealth management firm owners and executives. Though the software performs complex functions, well thought out tools provide a user-friendly environment which is vital in ensuring the software gets used to its fullest potential.
Business intelligence software, in general, offers businesses several important benefits. According to BI-Survey.com, which surveyed over 2,600 business intelligence software users, the top benefits of using BI include the following:
Other benefits analyzed in the BI-Survey.com survey, to a lesser degree, include: increased competitive advantage, reduced costs, increased revenues, and saved headcount.
Wealth management firms using business intelligence software can tap into those same benefits. BI solutions developed specifically for the wealth management industry such as Truelytics, offer even more benefits to advisory firms including:
Business intelligence software is a flexible tool that can be used across the firm. The following examples illustrate the many possible use cases for business intelligence in a financial advisory setting:
Business intelligence software is a tool, that when used appropriately, can deliver a host of benefits to financial advisory firms. However, not all firms will be a good fit for such a solution. The ideal candidates for BI software are wealth management firms that value and want the following:
In a nutshell, a good candidate for BI is a firm that believes investing in improving the business's foundation is critical to its success.
What could go wrong when choosing a business intelligence solution? As with any type of software to be deployed across an organization, there's more involved than simply downloading a program and running with it. By its nature, business intelligence software is complex. Some programs are incredibly powerful, but also incredibility difficult to use. With that in mind, here are some key considerations to keep in mind as you start your search for a business intelligence solution for your wealth management firm.
Even with an intuitive, self-service business intelligence platform designed for financial advisors, you'll want to make sure your team knows it's available, how it will benefit them and their clients, and how to use it. You may encounter resistance to adopting a new technology, making it smart to manage change from the beginning.
This starts at the executive level. You senior team must agree that gaining accurate and timely insights into the business is mission critical and a top priority. They should know that:
After getting buy-in from the executive team, assign data stewards to take ownership of your firm's data. These stewards will also be involved in developing a data dictionary that identifies authoritative data sources and provides consistent data definitions as well as in identifying tools to maintain the integrity of the data.
Let your users know that a new BI solution is in the works and how it will benefit them. This gives them time to get used to and embrace the idea. Leading up to the implementation, provide appropriate training, again, reinforcing the benefits by showing them how it will make their jobs easier, their clients better informed and more loyal, and the practice more successful.
If your firm is a good candidate business intelligence software, it's time to start exploring your options and evaluate BI software for the wealth management industry such as Truelytics.
Truelytics is the only online self-service platform in the wealth management industry that helps you understand the value of your entire practice based on its unique characteristics and make objective, informed decisions to advance your business without the need for expensive, outside consultants.
The competitively priced paid service provides you with: Truelytics scores, advisor and firm eValuations, scorecards, over 40 KPIs, continuity planning features, a personalized dashboard, benchmarking against industry peers, and more. Schedule a demo today.
Truelytics' Advisor Transition Management Platform is the first end-to-end data-driven system to help wealth management and insurance enterprises attract, retain, and support advisory businesses while also reducing time and costs related to transitions.
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