Financial Services Institute: OneVoice 2014

How to best leverage Big Data

Feb 10, 2014 @ 12:00 am

Runtime: 3:51

Wading through copious amounts of data can be daunting, but is imperative for financial advisers to understand which clients bring in the most profits. Here the experts weigh in with practical strategies for putting that information to use.

The Financial Services Institute's annual broker-dealer conference, taking place January 27-29 in Washington, D.C.

Video Transcript

Data, it's everywhere. And you've got a lot of it at your fingertips. You can use that data to build better relationships with your clients to find new clients. But how do you do that? Today, we're talking to some experts to help you wade through all the data that you have and use it to your advantage. -An adviser that hasn't had a data management strategy, but has accumulated data, isn't gonna make that data hugely useful overnight, but a strategy that involves where am I keeping my customer information, where am I keeping market information, where am I keeping historical e-mails, whatever social media information, whatever it is. What's really necessary is the strategy on the front end so the data is coming in to the right places, being stored in usable normalized way. And from there, you talk about practice management. There's great opportunity to mind that data to better understand the profile of the client that's profitable. You know, conventional thinking is. Our largest revenue clients are the most profitable. That's just wrong in many, many cases. You start looking at the maintenance of those clients and the cost associated with some of the business you're doing with those clients. Very often your most profitable clients are not those that generate the highest revenue. So, with properly organized data and the right recording tool's insistence, there's a huge opportunity to use the data for everything from analyzing profitability to better servicing your clients and not to mention all the compliance for making the [unk] -All right. -I think data-- I think people have different interpretation of what that means. To me, that means basically taking all the information you've got and getting it into a common data structure and database. And a lot of people are thinking about that, well, it's just like customer information, address, social security number, address, level of affluence, you know, KYC, things like that. I think about it a little bit differently. Yes, data is important and most organizations are not good at having that consistent definition and structure across the organization, but it gets into what I call behavioral data like what do you do, like, you know, when you think about our website, there's so much information there. There are so many tools. If we can actually see what you do on there and use that to personalize your experience and make that website more relevant to you, and more useful to you, and more intuitive to you, then that's where I see, you know, from my perspective [unk] TD Ameritrade. -The opportunity advisers have in regards to big data really centers around data that they are already collecting. So, I think one place that makes sense is with their CRM. So, any adviser that's using their CRM and using it properly is gonna have a lot of data stored in there whether it be notes, whether it be contract information, investment information, a lot of data and a lot of them have been using it for a long time and there's a lot of data that they really don't take advantage of. And so, I think that's a place to start for advisers. And I think the other thing about any good CRM is that they're gonna tie in with a lot of the other tools that they use whether it be their planning software, whether it be their portfolio management tools, or their marketing tools. And so, there's really a wealth in knowledge in one place. And so, I think that's a good place for them to start and really get a chance to see whether it be trends or inefficiencies within their office, what are the things that we're doing and we could be doing better that maybe they just have in taking a step and evaluated or maybe it's even-- where are some opportunities that we're missing with people that are in our pipelines and sometimes you get so caught up in your day-to-day that you don't take a step back and look at sort of the big picture and I think big data really help sort of connect those dots between those types of things.


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