Over time, those platforms can become increasingly fragmented, with pools of data stored in different and often unconnected siloes. That means some wealth management firms “lack a single source of truth regarding their information,” says Raymond Norris, vice-president of professional services at National Bank Independent Network (NBIN) in Toronto.
“Centralizing the data sources to have one pool of data that percolates throughout the firm’s’ ecosystem is probably one of the biggest challenges for independent wealth management firms today,” he says.
Data is a critical raw material in the wealth management industry, Mr. Norris notes. While having rich data is a benefit, managing it can also be a burden. That’s because wealth advisors know their greatest value lies in building strong client relationships. They want to spend as much time as possible on that. Too often, their time is consumed by operational challenges, such as dealing with complex technology stacks, disconnected platforms, and turning data into actionable insights.
For wealth management firms, it’s vital to implement technology strategies that support their advisors’ goals, unlock the power of their data and free up time.
NBIN and its Professional Services team help them do just that. As one of Canada’s largest data custodians for independent wealth management firms, NBIN serves more than 400 client firms that together manage more than $380-billion in assets combined.
Client firms benefit from NBIN’s efforts to streamline their technology platforms, thereby creating centralized hubs that ensure data is integrated and accessible to those who need it.
NBIN understands the urgency, as its parent bank has gone through its own digital transformation.
“We too have had to move our data and our technology from a legacy foundation to a cloud-based foundation,” Mr. Norris says.
The process has been beneficial for National Bank, Canada’s sixth-largest bank. It’s poised for the future, with secure, unified data management platforms that serve the firm and its clients well.
“You really have to go through it to understand where to start, what areas of technology to continue to support, which ones to stop and replace, and which existing ones to integrate with new platforms,” Mr. Norris says. “We have a lot of lessons learned that we can bring to our clients to help them avoid the pitfalls.”
He notes that independent wealth management firms often lack the required expertise. NBIN can provide them with timely and forward-thinking guidance. The Professional Services team operates as a consultative arm for independent wealth management firms that have reached a growth tipping point or are seeking strategic transformation.
“What we bring to the table is experience. We can help them leverage technology and data for client retention, cross-selling, or simply gaining insight to improve their business practices overall,” Mr. Norris says.
By helping clients organize and unify data through new technology and networks, NBIN helps drive measurable improvements in corporate performance. Mr. Norris points to the experience of a Toronto-based wealth management firm that saw an almost 40 per cent increase in assets under management.
“We amalgamated their data and aggregated it regarding their prospective client information. We also created an algorithm, using our proprietary large-language model, to show them trends for growth opportunities.”
The result wasn’t just improved marketing to prospective clients. The firm realized that acquiring another wealth management company with a similar client base was the smartest path for growth.
Mr. Norris says integrating technology and improving data management enhances an advisor’s abilities, and those of their associates and internal partners. This enables them to work more effectively and deliver higher-quality advice.
Simplified onboarding processes for clients is just one example. Where clients once had to sign as many as three different document packages, new technology has cut that to one.
“The difference in efficiency is night and day,” Mr. Norris says. “Ultimately, we help firms save their advisors and team members time so they focus on what they do best: helping clients manage and grow their wealth.”
This article was originally published in The Globe & Mail.