Wealth Management Analytics

Empowering wealth management
with analytics-driven decisions— a DecisionMinesTM perspective

The business of wealth management has seen significant changes over the last 100 years or so due to several factors. However, there are two things that have had a lasting impact on the industry—the financial crisis of 2009 and the rapid evolution of technology. The crisis brought in its wake stringent regulations in the overall financial industry, and one can safely say that the technological changes were just as radical. Technology, in fact, has simplified some of the complexities of the industry, while allowing both wealth management firms and their clients a chance to reimagine the financial planning process.

Challenges in wealth management

The dynamics of the global markets posed as many challenges as opportunities to wealth managers. After 2009, new markets began to emerge. With significant growth in the emerging markets, there was a definitive growth in the High Networth Individual (HNI) wealth as well as population. The products and services demanded by HNIs were much more sophisticated and complex than those offered under normal banking services. With these emerging market trends and demands, wealth management firms must mitigate three key challenges—tweaking strategies to include new technology into the decision making process, managing client expectations with changing environments, and staying relevant to the next generation of investors.

Driving powerful decisions underpinned by analytics

With a technology revolution under way, wealth management firms have a wealth of data at their disposal. Increasing digitization and the proliferation of the Internet provide a broad spectrum of data sources and the large volumes of data generated offer a goldmine to financial advisors. Leveraging this data, or rather, big data, to create differentiated value for clients is an opportunity they cannot afford to miss.

Analytics is no longer a value addition that wealth managers can offer to their clients; it’s a way of life and of business. For wealth management companies, decoding the propensity of an account to succeed, determining the probability of retaining a client, enhancing the clients’ ability to aggregate information about their assets, comparing the performance of wealth managers, and focusing on the top performing wealth managers are only some of the advantages that data-driven analytics can offer. Overall, as we discuss in our white paper, this is certainly the most exciting time for wealth management firms and their clients.

Client Retention

DecisionMinesTM: empowering decision makers with actionable insights

DecisionMinesTM offers wealth management firms a scientific, data-driven framework that leverages machine learning and predictive analytics to help them uncover value beneath massive layers of organizational data. It helps business leaders make informed decisions by synthesizing the art of judgment and the science of data.

DecisionMinesTM primarily supports two key areas of focus in wealth management—customer management and workforce management. We help wealth managers focus on customer churn and prospect conversion. With DecisionMinesTM, you are accurately able to determine the customer actions based on data-driven insights. The framework also helps you analyze the wealth management advisors in your workforce to determine their propensity to attrition in order to prevent discontinuity and disruption of services to your clients.

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