The Future of the Decision Making Process for the Financial Services Industry
Financial institutions (FIs) and wealth management firms need to be focused on analytics for good reason: Data analytics provide the deep level of business intelligence that firms require to identify the largest growth opportunities as well as their biggest risks. With the right tools and better benchmarks, managers have superior decision-making capabilities. Imagine knowing which clients are driving revenue growth, or which competitor is gaining momentum in the marketplace. Armed with fresh insights about clients and competitors, managers are better able to identify and act on opportunities.
Despite these numerous advantages, both wealth managers and FIs have lagged in their use of analytics. They have not been able to access the deepest levels of business intelligence, because while data is sometimes abundant, access, normalization, and useability are hard to secure, meaning insights and analytics are limited.
This whitepaper will explore the current frontiers of data analytics and how it can support wealth managers and FIs. The decision-making process is rapidly evolving; the right tools combined with data are now able to answer key business questions, and even alert users to the questions they should be asking. That’s the kind of advantage that organizations need to succeed today.
Answers Are Waiting — For Those Who Ask the Right Questions
Analytics users have a problem: They don’t know what questions to ask of their data. Not for lack of questions — it’s more an issue of narrowing the list down to what matters most, and of having access to valid benchmarks and competitor activities.
Advances in analytics and the rich data set incorporated into the Envestnet | Yodlee Financial Data Platform have created a revolutionary situation. The platform’s capabilities, including its ability to easily combine data from multiple sources, means users can use this data to answer — and in turn, to ask — more relevant questions than they have been used to in the past. Therefore, decision makers and managers need to take a step back and think about which questions truly drive ROI and which could make them more successful, such as:
- How are my key performance indicators trending?
- What are my assets, revenues, new clients, lost clients, and revenue growth rates?
- Is my business gaining or losing momentum?
- How is my organization performing against its peers?
- What are my estimated revenues?
- How is my organization performing as a whole?
- Who are key contributors to, or detractors from, my organization’s performance?
- Where are my organization’s opportunities for growth?
- What is my organization’s average wallet share percentage compared to its peers?
- Is my organization focused on the right opportunities?
Ultimately, the promise — and challenge — of advanced analytics is that it helps decision makers and managers think outside the box and realize, “If I had answers to these questions, I would be successful.”
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