The biggest bottleneck in client service isn’t just time or technology — it’s managing good, clean data. Onboarding a client requires an enormous amount of information, and that’s only the beginning. Clients don’t live in a vacuum; their lives are dynamic, and their information is constantly changing.
While software providers can promise fast page loads and sleek interfaces, they rarely address the integrity or accessibility of your data. Without the right processes and technology, your firm risks falling into the trap of data silos, where crucial information is scattered across systems, creating inefficiencies and errors.
As the amount of client data available to firms increases, so can data silos. When firms work in disparate, unintegrated systems, data may be stored in multiple places or not shared at all. The inefficiency and cost of siloed data is only part of the problem. Multiple data sets lead to errors, non-compliance, and delays. Advisors say disconnected data is a major barrier to innovation, and 62% of financial leaders say improving access to siloed data is a top data initiative.
Breaking down these silos and integrating systems might seem daunting, but it’s essential for firms looking to thrive in a fast-evolving landscape. Here’s how your firm can embrace a data-first approach and put chaos in order.
Eliminate Duplicate Information
Firms don’t plan to silo their data, but it often happens over time as new technologies and systems are adopted, employees come and go, and firms merge. Over time, data can become a complicated web of systems, documents, and information.
Start breaking down silos by getting to the root of the problem. First, find the most accurate source of truth. Look for roadblocks and bottlenecks in your processes to see where data is mismanaged or communication could be improved between data sources. If clients must complete paper forms which are entered manually into multiple systems by back-office employees, getting to the root of the problem means finding the most accurate data and removing excess data sources. Start with a clear view of your silos so you can find solutions.
Create a Single Source of Data Truth
Often firms and advisors store paper files in the office or keep copies of digital files in multiple systems. Every time a back-office employee needs to access client information, they have to manually sort through physical files, dig through old digital files across numerous platforms, or re-enter the information. Multiple copies of information increase the chance of errors, inefficiencies, and noncompliance.
Without accurate data, it’s difficult to maintain compliance and security. When data is spread across numerous systems, it is much harder to ensure that it is protected and stored in compliance with SEC/FINRA regulations.
Move to Integrated Systems
The most effective way to break through data silos is to replace them with integrated data systems. Instead of entering data into separate applications for each task, digitally savvy advisors can lead their firms toward embracing integrated systems that share information, avoid redundancies, and facilitate accurate, efficient processes.
Individual systems can be effective on their own, but without a way to integrate them effectively, a firm using multiple applications wastes time and money and exposes itself to higher levels of risk. When firms invest in a fully integrated document management solution, allowing them to import and export data with one click, it can transform their business operations and client relationships.
Integrating systems for real-time, accurate information reduces frustrations and roadblocks on the back end, resulting in a difference clients can feel. With less time spent wading through client data, advisors can spend more time nurturing prospects and working with clients to make personalized recommendations and provide an excellent client experience.
PreciseFP, the leader in hassle-free data gathering, integrates with leading financial advisor Customer Relationship Management (CRM) systems like Salesforce and Wealthbox to easily and accurately move data back and forth. The integrated system automatically populates crucial data like contact and employment information, family members, and net worth in the CRM. Advisors and back office staff can access the complete picture of each client as they are working with their clients’ investment information and financial documents in other systems—all without manually moving data or switching between applications. Start a free trial today.
