Technology now sits at the core of every financial planning business, but are advisers leveraging the data in their systems to take their practice to the next level?
I recently discussed this question with Nigel Baker, managing director at Arch Capital, and Paul Benson, principal of Guidance Financial Services for a special four-part series on data for the ensombl podcast. Like me, Paul and Nigel have seen first-hand how accurate data can catapult a business forward, while insufficient or incorrect data can hold it back, particularly in today’s increasingly competitive market.
We looked at the importance of having data you can trust, common data issues at the advice coalface and the opportunities a clean data set can present for practices and their clients.
Setting the scene: Can you trust your data?
If you’re running a planning business, you’re likely managing data every day, from personal information and investment figures to client agreements. But there’s a difference between having the data and being able to trust it and put it to good use.
Poor data quality can mean a few things: perhaps you have gaps, such as missing email addresses or phone numbers, or there could be mistakes or inconsistency in how data has been entered; maybe data lacks integrity, meaning it doesn’t match across systems.
It’s a pervasive issue across the financial services ecosystem. Recently, the Australian Competition and Consumer Commission’s (ACCC’s) deputy chair Catriona Lowe noted that poor data quality was limiting consumers’ ability to compare products and make informed financial decisions, especially in the banking and energy sectors.
While a mistake here and there may not sound significant, the effects of poor data quality can affect the whole business and its reputation. Inconsistencies can limit growth, undermine trust with clients and prevent the business from making confident decisions.
As we move further into the AI age, the stakes are only increasing. The potential for AI to power a practice is enormous, but if the data and inputs can’t be trusted, the AI results will be similarly flawed.
Data problems – in practice
The Australian advice market has become more consolidated in recent years, as practices merge or get acquired by other businesses. M&A can open strategic and growth opportunities in advice, but the process can also expose data problems within a business, which can be caused by improper processes or using multiple systems that don’t communicate with one another. In some cases, the root cause comes back to the company culture: does the business and its team take data quality seriously?
In the case of a merger, data gaps and inconsistencies can create headaches and delays in gaining momentum for the newly merged business, especially if the original businesses were using different systems. Nigel acquired another firm last year and says it reinforced the importance of clean data to make sense of processes, workflows and goals.
For Nigel, the growing importance of security also highlights the need for robust data practices. Clients trust their planners with highly sensitive information, which has become more vulnerable with a new wave of cyber security threats.
The prospect of a large-scale breach was enough to keep Nigel awake at night and prompted him to overhaul the systems he uses at Arch Capital. His business consolidated its tech stack and brought its CRM, client portal and document storage under a single, secure platform. The single source of truth allowed the business to grow with peace of mind.
However, choosing the right tech was only half the battle. Nigel said having the right people on the team and processes to lead the transformation and take ownership of keeping the system tight was critical.
The biggest opportunities
Embracing quality data presents multiple opportunities across client experience, efficiency and growth. For businesses, quality data enables better decision-making. Rather than relying on gut feel, practices can use data to understand where they’re performing well, where there are gaps, and where growth opportunities exist. Business intelligence dashboards are a great example of how firms are visualising key metrics, track revenue over time, identify trends, and uncover new opportunities.
From a client experience perspective, it allows advisers to deliver more personalised and relevant advice. Having a clear, consolidated view of a client’s financial life means we can spend less time chasing information and more time having meaningful conversations. It also builds trust—clients know their data is being handled with care and professionalism. While it may not be intended as a marketing tool, data practices are among the best ways a practice can market its expertise to clients and potential future clients.
While data hasn’t always been a priority for practices, that’s expected to change as businesses develop a greater appreciation of the power of quality data, particularly in the age of AI. What gets measured gets improved – and that starts with getting the data right.
At intelliflo, we believe quality data is the foundation of practice growth and client trust.
Our dashboards help advice practices bring their data to life —turning raw figures into clear, visual insights that help you understand performance, uncover opportunities, and deliver advice with confidence. Book a demo to see how intelliflo can help you harness the full potential of your data.
