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In our current digital world, it’s undeniable that data and analytics are essential tools within any business. But for financial advisers in particular, leveraging client data can provide the much-needed competitive edge in a saturated market.

Businesses that leverage and maintain accurate and updated data are up to 23 times more likely to acquire customers. That is if they can maintain and manage clean, organised, and updated data, of course.

Mckinsey Global Institute

The importance of clean, organised and updated client data

Although many businesses rely on data to influence their business decisions, this becomes exponentially more important in the financial sector, where compromised client data has a direct impact on your client relationships. Businesses can no longer manage vague, high-level data – especially in the financial sector, which demands hyper-personalisation. 

Data quality challenges and their business impact

Ultimately, incorporating and leveraging data is simple (especially with the right software). In fact, you may already be doing data-driven things in your day-to-day practice without even realising it – like something as simple as using the spreadsheet tool. 

However, as your business grows, you need a tool that can scale and adapt to your needs as well. Unfortunately, many manual processes lack these capabilities and lead to common pitfalls such as: 

  • Inaccurate information: Without a streamlined system in place, client data may become outdated or inaccurate over time. This can lead to misunderstandings, misinterpretations, and errors in financial planning and investment decisions.
  • Poor communication: Inefficient data management can result in difficulty retrieving relevant client information when needed. This can lead to delays in responding to client inquiries, providing updates, or addressing concerns, ultimately harming client relationships and trust.
  • Wasted time and resources: Inefficient data management processes often involve manual data entry, redundant tasks, and searching for information across disparate systems. This wastes valuable time and resources that could be better spent on client-facing activities, business development, or strategic planning.

The answer? Automation.

The importance of maintaining updated client data

Data analytics through automation is your modern-day business superpower. Instead of settling for the manual tasks that financial advisors have traditionally had to perform in order to analyse portfolios and markets, data automation takes over the baton. 

This automation increases efficiency by allowing advisers more time to focus on client relationships rather than spending hours crunching numbers. This additional time (and insight) is critical in an industry built on client trust and communication. 

Nurture client engagement, trust and communication with Commspace

Naturally, the better you know someone, the more your relationship will improve. This stands for client relationships as well as the importance of updated client data. With the right data, financial advisers can leverage client-specific reports and regular performance updates. With these specific and relevant insights at their fingertips, advisers can strengthen client relationships by offering insights into portfolio performance and outlining the thinking behind investment suggestions.

Scale your business with a tool designed to adapt and grow with you and your business through Commspace’s unique data analytics and reporting capabilities.