Leveraging quality data to unlock value for brokers and their clients

By Darren Stevens, Chief Product Officer, HUB24

Access to quality data is critical when it comes to improving wealth businesses. Data can help to drive operational efficiencies, manage risk and provide engaging personalised experiences for clients.  It can also drive solutions that help bridge the gap with Millennial and Generation Z clients – those who are digital natives and expect frictionless online experiences from their service providers.

In the wealth management industry, advisers, licensees and brokers have been hampered by complex regulation and compliance in addition to legacy technology systems that produce unreliable data from disparate sources. As a result, many businesses are still on the journey to access data effectively and unlock its potential to create value for both their practices and clients.

However, the industry is advancing and recognises what good quality data can bring to the table for business operations and customers alike. For example, super funds are using data to enrich the transactional data they have with psychographic, attitudinal and behavioural data from research specialists. This allows them to create predictive models and ‘next best’ actions that can be automated through sophisticated marketing tools – providing business efficiencies and new and relevant ways to engage with clients.

Unlocking data’s potential

For us, it all comes down to data. HUBconnect Broker (formerly known as Agility Applications) was founded back in 2007, servicing a wide range of broking clients with data and technology services, and became part of the HUB24 Group in 2016.

Since then, we’ve been collaborating with licensees and advisers to understand key challenges in the delivery of advice and apply our data and technology expertise to develop innovative product solutions for licensees, advisers, brokers and their clients.

HUBconnect leverages innovative technology such as machine learning, robotic process automation and artificial intelligence to help reduce friction in the advice process, with quality data and compliance top of mind.

By working with some large wealth businesses and unlocking large sets of data, HUBconnect is developing machine learning solutions and data driven algorithms that create business efficiencies for licensees, advisers and brokers and improve their clients’ experience.

 Currently, much of the data within brokering and advice businesses is held in an ‘unstructured’ format (in documents such as PDFs, word files, emails and CRM systems), making it harder to access and utilise the data effectively. By accessing and cleansing this unstructured data, and then combining it with ‘structured’ data from other sources, HUBconnect helps to further enrich the data through machine learning and other technologies to add value to the business at hand.

How data and technology are enabling wealth businesses

Once we have access to this enriched data, the opportunities are limitless. HUBconnect’s data innovations are already delivering data driven dashboards and reports for businesses in our pilot program that can monitor and manage compliance in real time. By extracting key data points, a wealth management firm can better monitor its health by using data and technology to develop practice management dashboards, automated early warning alerts and to keep check on aspects like client risk profiles. In addition, a firm can retrieve other useful insights from its data to drive business decisions.

This technology can reduce costs for businesses by saving them from manually measuring, monitoring and addressing issues, and driving business efficiencies while enabling a better client experience.

Another key pain point for advisers is the inability to provide their clients with a ‘single view of wealth’ and this is an area where data and technology can help to solve. By integrating data feeds from multiple sources into a single access point, a client and their adviser have the ability to view the portfolio in one place, regardless of where the assets are held. The client can interact and engage with their adviser, who remains at the centre of the relationship, while more personalised digital experiences can be created based on the individual client’s circumstances.

Building the foundations for a stronger advice industry

Quality data is key, and HUBconnect is focused on getting the data right to then deliver solutions that drive advice efficiencies and replace manual, time-consuming and costly practices.

Our data driven solutions are paving the way for the advice industry and are central to empowering licensees, advisers and brokers to deliver cost-effective advice to more Australians.

This article has been prepared by HUB24 Custodial Services Ltd ABN 94 073 633 664, AFSL 239 122 (HUB24) and is current as at June 2022. This article is general information and does not consider the circumstances of any investor or constitute advice. No fund or stock mentioned in this article constitutes an offer or inducement to enter into any investment activity. Any requests for reproduction will be referred to the contributor for permission. This article was prepared in good faith and we accept no liability for any errors or omissions. © 2022 HUB24. All rights reserved. For further information, please visit: www.HUB24.com.au

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