Data Analytics Is Revolutionizing Wealth Management
Today, we are seeing significant changes in how financial services information is curated and delivered. Firms are looking for more efficient ways to acquire insight from ever-increasing amounts of data so they can monitor the effectiveness of their products, strategies and resources. As a result, data analytics and data visualization are proving to be useful tools for the wealth management industry. Data visualization is the presentation of information in a vivid, visual context that helps users better understand and quickly grasp the significance of the information. Keeping in step with clients and peers means using digital visualization techniques to explore data and track key performance indicators. There is an important opportunity for asset managers and broker-dealers to curate information–selectively organizing and displaying important data views in easier, more accessible and more meaningful ways to help achieve greater insight and understanding. The amount of data generated each year is growing exponentially. More data has been created in the past two years than in the history of the human race. By the year 2020, about 1.7 megabytes of information will be created every second for every person on the planet, With exploding growth in data volume comes the need for businesses to organize, interpret and act on the information in real time to stay competitive. Data visualization techniques improve the ability of business leaders to identify trends in a vivid, graphic context. It also lets them see and grasp important connections and identify new opportunities. To stay competitive, firms need immediate access to data in easy-to-digest and useful formats. In the future, asset managers in the model management space can look forward to data views and visualization capabilities that let them learn how their models are used and distributed and how they perform. They also will be able to identify important trends and assess model usage and penetration across sponsors. For sponsors, the future will bring data visualization of their model data so they can quickly identify the top investment managers, strategies and financial advisors, and readily compare each category. The integration of data and digital processes makes that all possible.