Big Data in Wealth Management: The Search for Customer Insight

by Bill Fearnley, Jr, May 22, 2013
Industry Trends
North America

Abstract

Many wealth management firms are using Big Data to gain new insights into their customers and prospects, discover investment opportunities, assist with risk/compliance, and provide competitive differentiation.

Big Data tools and technologies can help wealth management firms analyze the massive amounts of data they process, consume, and produce on a daily basis. In the report Big Data in Wealth Management: The Search for Customer Insight, Celent discusses some of the technologies and strategies available to help firms gain new insights by aggregating and analyzing data from internal and external sources.

Discovering, developing, and testing new, actionable ideas and strategies will help uncover investment opportunities that can improve investment returns and manage risk, which will attract new investments.

“Combining analytics and aggregated data will help wealth managers improve customer and advisor retention, discover investment opportunities, and monitor operational and reputational risks,” says Bill Fearnley, Jr., Senior Analyst with Celent’s Securities & Investments Group and author of the report. “Celent recommends firms and providers choose specific projects and begin to explore the power of new analytics and visualization tools.”

This report will help banks and wealth managers evaluate and prioritize Big Data opportunities in their firms’ front office and middle/back office operations. Some of the topics covered in the report include: uses of Big Data in wealth management, the three key steps and types of data available, and uses of Big Data and analytics in the front office and middle/back office.

This 20-page report contains one figure and eight tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

 

Defining Big Data

2

 

Big Data in Wealth Management

4

Three Key Steps to Big Data

5

Demand Drivers for Investments

6

Multiple Types of Firms Are Investing In Big Data

7

Uses of Big Data in Wealth Management Firms

8

 

Pre-Trade Transparency and Liquidity

10

 

Front Office

10

 

Middle and Back Offices

12

Technology Vendor Overview

14

Conclusions and Recommendations

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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