In this commentary for the Advisor Advocate, financial data service company Quovo* discusses how high-quality data aggregation can be the foundation for a successful advisory practice.
These are exciting yet challenging times to be a financial advisor. The robo-advisor revolution and heightened consumer expectations are changing the game. It’s clear that better technology will be a key differentiator for you and your practice – but do you have a data roadmap to go along with your technology roadmap?
The best tech is only as good as the data powering its capabilities. At Quovo, we often tell advisor clients that choosing to invest in technology over data is like buying a Ferrari and filling the gas tank with orange juice. Sure, it looks nice – but there’s not much you can do with it.
One of the most powerful areas in which a data-first mindset can reap big rewards is account aggregation. Aggregation can be valuable for each stage of the client relationship. First, it helps reduce friction in prospecting and reporting. Clients and prospects can sync up accounts, a big improvement over dropping a stack of statements on a desk. Aggregation also helps the advisor take a client-centered, holistic perspective, helping meet compliance requirements to put client interests first.
But for account aggregation to be valuable, the data needs to be accurate, robust and usable. In short, it has to be the fuel that makes your other technology hum. By combining cutting edge, proprietary data extraction tools with a full analytics and reconciliation engine, Quovo strives to ensure that data output is high quality. Unlike old-school aggregation, Quovo evaluates and enriches data as it comes in from thousands of sources. Quovo integrates with dozens of portfolio management, financial planning and CRM systems so that aggregated data can get to wherever you need it across your practice.
Data is the future. More data, from more sources, delivered more reliably can help give advisors the insights and leverage to succeed in an evolving regulatory, technological and client landscape. When you’re thinking about investing in technology), don’t forget the importance of data.
About Quovo: Data Science for the Wealth Management Industry
Founded in 2010, financial data science company Quovo is dedicated to transforming and improving the practice of wealth management in the age of big data. Quovo offers an enterprise-grade data management platform that helps financial advisors aggregate, extract, manage and analyze financial portfolio data. The full-stack Quovo platform not only provides the backbone for aggregation and business intelligence analytics but also offers dashboard tools to help make complex data insights intuitive.
Explore the Scottrade® Strategic Resource Center to connect with Quovo and other organizations that specialize in technology, compliance, research, education and marketing. Many of these resources offer discounts to advisors who custody assets with Scottrade. (Scottrade provides this resource for informational purposes and does not specifically endorse any of the businesses within the directory. Scottrade also does not pass judgement as to whether those services are appropriate for specific business needs. Be advised this is not a full and comprehensive list of businesses that offer these types of products or services and that advisors are responsible for doing adequate research before making any purchases.)