- Poor data quality is slowing AI adoption across wealth management
- Firms target ‘single source of truth’ but face legacy barriers
- Data now a board-level priority, not just a back-office concern
- Report identifies five essential elements for achieving high-quality data
PRESS RELEASE
A new report published today by financial data management firm and data specialists Raw Knowledge reveals that wealth managers are pushing data to the top of their strategic agendas, but poor data quality continues to hold back AI adoption.
The report, Order from disorder: Moving from fragmented data to competitive advantage, based on in-depth interviews with 12 wealth managers during Q1, shows data has shifted from a back-office issue to a board-level strategic priority as firms recognise its potential to unlock exponential growth.
When asked about AI, many firms said that a lack of well-governed, high-quality data within their organisation was a barrier to adoption, despite recognition of its potential to boost efficiency. Many are starting with low-risk applications such as meeting transcription and plan to build on this once data quality improves. Some have ambitious AI programmes underway – one is starting to use an AI operating system to support with the automation of tasks like client fact-finds for onboarding.
Firms are making progress and increasingly aiming to build a ‘single source of truth’ for their data and replacing fragmented legacy systems and siloed information with unified, accessible data architectures that provide them with a single, harmonised view across their business. They anticipate it taking between 18 months and two years to achieve their data goals.
Where firms are investing, better data is already delivering tangible benefits. Relationship managers are equipped to provide better service through real-time access to client information and analytics are providing deeper insights into client behaviour to support growth strategies.
Improved data is also easing regulation and compliance pressures, enabling more accurate and timely reporting for regulatory requests. This is increasingly important, as separate research from the lang cat shows advice firms are struggling with growing regulatory data demands. More than a third said they lost between one and three working days to complete these, while for more than one in ten, this was as much as 11-20 days.
While ambition for data strategies is high, execution remains challenging as firms continue to grapple with legacy technology, multiple systems and large volumes of unstructured information. The process of cleaning, standardising and integrating data is resource-intensive and complex.
The report identifies five essential elements for achieving high-quality data:
- A clear data strategy – establishing a single, accessible repository for firms’ data
- Leveraging technology – eliminating siloed data through a single output multi-use model
- Strong data governance – consistent standards for data capture and use
- Buy-in from across the business – embedding a data-first culture across teams.
- Evidence and measure data value – demonstrate tangible outcomes from sustained data investment
Commenting on the study, Preya Patel, Managing Director of Raw Knowledge said: “While the wealth sector is far from alone in facing data challenges, the pressures it confronts are particularly acute. Rising regulatory scrutiny, ongoing market consolidation and growing client expectations are making high-quality data a critical priority for firms across the industry.
“This report highlights both the scale of the challenge and the progress being made. Firms are moving away from fragmented manual processes towards integrated data-driven operations. Those with good data will see benefits across their day-to-day operations, while those with excellent data will be best positioned to scale efficiently, deliver better service and tap into new growth. Well-structured, well-governed data will be a defining factor in long-term success.”
ENDS
About Raw Knowledge
Raw Knowledge is a specialist data provider and data management firm under the Industrial Thought group of companies. Its pioneering Managed Smart Data platform helps businesses make better, data-driven decisions and streamline their operations by creating a traceable and harmonised view of their disparate data sources.
