Trying to harness the power of big data for advisers

From analytics to zettabytes, big data is overtaking tech platforms in the financial services industry. “Big data is coming to our space really quickly,” Brian McLaughlin, chief executive and chief technology officer for Redtail Technology Inc., said at the T3 2013 Enterprise Conference in Chicago on Monday. “We just can't get our hands around all the growth in information, and that's what people like me in IT are trying to solve.” Financial services technology platforms have been building vast storehouses of consumer data for years — with predictions that it will be possible to create and replicate 8 zettabytes of data by 2015. But only now are these data storehouses being analyzed by broker-dealers and financial institutions to figure out how advisers can use all this client information to improve their practices. For example, Redtail started out as a customer relationship management platform, but on Monday, Mr. McLaughlin announced the launch of Redtail Data Cloud, a platform that will deliver analytics that track the adviser-client relationship. Once “the easy stuff” of CRM analytics is complete, Redtail will then put the jigsaw puzzle pieces into place and give advisers a view of the data that puts it all into context, he said. “This integration uses data from multiple sources to draw the big picture for you,” Mr. McLaughlin said, noting that Redtail Data Cloud helps advisers identify “problem children” within their client base by tracking variables such as workflows, e-mails and phone calls. In addition, he said that adviser practice management departments can use big data to show a firm's low producers how the high producers operate. “Context is probably the biggest part of the big data problem,” he added. “Advisers are in dire need of being able to connect the dots.”