Data silos are certainly problematic, and as wealth and asset managers increasingly rely on quality and real-time information, they can ill afford disjointed and hard-to-access data sets.
Salesforce CEO Mark Benioff once referred to data as “the new gold.”
And at Empaxis, we agree with that statement. We know how much investment firms value accurate, reliable client and portfolio data in their operation.
But data is only gold when that data is high-quality, easily accessible, and highly relevant to aid in faster, better decision-making and client servicing.
The reality for many businesses is that their data is not the gold it can and should be worth, and that’s likely due to siloed data.
Siloed data refers to information trapped within separate systems or departments, often times inaccessible to others who need it and cannot be easily shared to other platforms.
In the context of investment management, this could mean client data living in a CRM system that doesn't talk to portfolio management software, or performance data languishing in spreadsheets that isn’t integrated into reports.
While the immediate consequences of siloed data might not be obvious, the long-term costs can be devastating.
79% of knowledge workers report their teams are siloed, complaining that they spend 12 hours a week manually gathering data as a result.
- Forrester Consulting
When the client and portfolio data is scattered across different systems, investment firms struggle to gain a holistic view.
This makes it difficult to identify opportunities to promote new products or services to interested clients, tailor investment strategies to individual needs, and proactively address potential concerns.
And what are the results? Missed opportunities to deepen relationships and ultimately, drive revenue growth.
Manual data entry, reconciliation and performance, and report generation become time-consuming chores when systems don't communicate.
Valuable hours are wasted on repetitive tasks that could be automated or better integrated, leading to frustrated employees, increased error rates, and a drain on productivity.
This inefficiency directly impacts the bottom line, as resources are misallocated and operational costs rise. According to data from market research firm IDC Market Research, companies lose 20-30% in revenue every year because of inefficiencies.
Accurate and timely data is crucial for making informed investment decisions.
Siloed data creates a fragmented picture of a client's portfolio, risk exposure, and goals.
This can lead to suboptimal investment choices, missed opportunities for rebalancing, and increased risk of losses. In a volatile market, the cost of these mistakes can be substantial.
The wealth management industry is heavily regulated, with stringent reporting requirements. Siloed data makes compliance a time-consuming and error-prone process.
Extracting and consolidating information from multiple systems increases the risk of inaccuracies, delays, and potential regulatory fines.
And the reputational damage from a compliance breach can be far more costly than the fines themselves.
Siloed data hinders investment firms’ ability to leverage modern technologies like AI, machine learning, and advanced analytics.
These tools rely on integrated data to generate actionable insights, automate processes, and personalize client experiences.
But if they continue clinging to outdated systems and fragmented data, wealth and asset managers will miss out on opportunities to innovate, improve efficiency, and stay ahead of the competition.
It’s clear how siloed data can erode a firm's efficiency, profitability, and growth potential.
By proactively addressing this issue and investing in a unified and cohesive data strategy, investment managers can discover new opportunities for client insights, operational efficiency, and regulatory compliance.
And Empaxis knows how problematic data silos are in investment management.
We build solutions that allow for more integrated data, seamlessly connecting a firm’s CRM, portfolio management system, and other platforms to create easily accessible data sets and reports, available in desired locations that serve as a single source of truth.
Don’t be held down by siloed data; it’s time to break free.
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