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Big Data Analytics Remains a Big Opportunity for Wealth Managers – Part I

Wealth Management firms are spending billions on IT to differentiate in the market place. Yet the question remains, can “Big Data” have a material impact on the business? Can it deliver business outcomes by reducing risk, increasing assets under management, driving profitability, client satisfaction, products per client, client and financial advisor retention, all while improving the cost/income ratio and return on equity?

These are questions that are being discussed in board rooms across the financial industry and topics that I will cover in this blog series.

In order to answer these questions we need to put the wealth client at the center and understand changing client needs and expectations around how the client wants to be served by the firm. We need to examine external factors such as the impact of game changing consumer technology and unprecedented client access to information, as well as understand how new market entrants are challenging the traditional financial advisor value proposition and business model as a new round of Robo-Advisors hit the market.

Up until recent years, banks enjoyed an account centric transactional business model. What is changing is the onset of unstructured social interaction data as smart mobile devices and mobile broadband Internet usage reach high penetration levels. Device proliferation is leading to the availability of “data exhaust” from mobile phones, tablets, automobiles, video cameras, and from sensors in buildings, streets, consumer wearables and footfall traffic counters. Correlation of such data to better attract, retain, and serve clients can create market advantage.J pagano Wealth Mgt Blog part 1

The “Big” in Big Data comes from the fact that worldwide data volume is doubling every two years with unprecedented volume, variety, and velocity. Ninety percent of the all data in the history of the world was created in the last two years (SINTEF)! The concept of Big Data is about the correlation and analysis of transaction data, social interaction data, and machine/sensor data in a way that can turn data into knowledge, knowledge into insights, and insights into actions in real-time.

So what does this all mean for wealth managers?

As a wealth manager, what impact would it have on your business if you were able to increase the understanding of your client exponentially? Actions derived from data are informed by highly personalized needs predictions that can arm wealth managers with deep insights about their clients, increase their relevance in every interaction, and directly contribute to business outcomes. Big Data can help wealth managers transform the client value proposition and re-imagine the client experience.

The new vision for financial services is that a firm must be present in the financial lives of its clients, any time, any place, on any device, and across any channel.

The firm can no longer wait for the client to come to it. It must be proactive in delivering highly relevant value-added services in real-time and anticipate client needs. The firm needs to aspire to creating a “market of one” experience for each wealth client, understand the needs of and the hierarchy within the household, and move to a client centric versus account centric go-to-market approach.

When it comes to Big Data in Wealth Management start with the foundation, put the client at the center, and define business outcomes. Focus on building capabilities around what is possible while re-imagining the client experience.

Wealth management firms can take concrete steps in the form of measurable business outcome based projects to significantly enhance the client experience. These include:

  1. Define a roadmap for wealth client data analytics maturity. This will identify gaps that can be addressed resulting in more relevant advisor-client interactions.
  2. Establish a wealth client listening system across all channels. Early detection of client behaviors can lead to the identification of issues and sales opportunities.
  3. Create a real-time single view of wealth client data with data virtualization. Substantial savings can be had by leaving disparate data in place while providing managers with a single view.
  4. Establish an analytics driven financial advisor collaboration platform. This helps create market differentiation by maximizing advisor productivity, sharing best practices daily.
  5. Deploy mobile virtual advisor video capability and establish branch analytics. This improves client experience and gives advisors more minutes per day with clients increasing cross-selling opportunities.
  6. Empower advisors with real-time client insights to drive business outcomes. This helps the advisor manage to client life events with much greater granularity and speed.

The choices that wealth management firms make around data analytics in the next two years will determine their position in the marketplace. Can Big Data help wealth managers? With a client centric and business outcomes solutions approach, the answer is an astounding YES!

I will discuss each of the above steps in more detail in my next blog. As always I welcome your suggestions, stories, and feedback!



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Cisco Partner Plus and the Cisco Power Ecosystem

As I mentioned in my last blog on The Cisco Partner Ecosystem in the midmarket, I wanted to take just a bit of your time in December to give you a little expanded information on the Cisco Partner Plus Program. As we near the holidays and we will all be taking some much needed time to relax with friends and family, know that you are a vital part of The Cisco Partner Ecosystem and this is another way that Cisco can really help you win in the midmarket space.

Just like I said last month, I cannot stress enough that it’s not just “big business” that powers the economic engine globally. The midmarket space has increasing IT demands and even more limited resources than their enterprise siblings. We offer a great deal of help to Cisco partners in the midmarket space, but the Partner Plus Program helps you:

  • Prepare, build and expand
  • Generate demand and increase sales
  • Enjoy your success through rewards and incentives

We want you to be a successful part of The Cisco Partner Ecosystem and the Cisco Partner Plus Program helps ensure you get the support you need from us in order to succeed. Partner Plus offers increasing levels of benefits as you move from Partner Plus Aspire to Partner Plus Prestige and all the way up to Partner Plus Elite. Read More »

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Use Video to Make Internal Communications Count

blog image Patty Post 12_15_14As I am sitting in heavy traffic on the way home from work, my finger tips tapping impatiently on the steering wheel, my mind wandering… I suddenly think of the Chinese program that I am so glad to have recorded on TV. Without this convenience, I would have missed it.

I can’t help but reflect on how big the opportunity is for companies to deliver information via pre-recorded, on-demand, interactive video.

Just recently, I was talking to my colleagues about how different time zones often make it difficult to attend conferences live. Thankfully, we can access the recordings. These can save so much time and let us catch up with the topics that matter most to us.

One of my colleagues also pointed out how valuable the leadership briefings are to keep employees informed. Although we’re based in the UK and Cisco headquarters are in California, we do like to get regular updates and feel involved. She said that she watches the meetings on demand from her laptop or on her iPad while travelling.

If only more companies made more of their communications available in this way… Read More »

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My Internet of Everything Holiday Wish List

‘Tis the season to shop and to make resolutions  for the coming year. I’m doing a fair bit of both, inspired by the many Internet of Everything (IoE) products that are popping up everywhere. And while it’s the season of giving, I’m also finding plenty of things I wouldn’t mind getting myself. According to the National Retail Federation, I’m not alone. “Self gifting” makes up almost a third of all holiday shopping.

IoE is about things connecting to the Internet, millions of things. It’s about turning the data they collect into information we can act on or respond to. Cisco defines IoE as bringing together people, process, data, and things to make networked connections more relevant and valuable than ever before. Read More »

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Event Takes Customers Inside the Data Center, Explores Cisco’s Journey to ACI

For the second year in a row, the Cisco on Cisco IT team planned and hosted Data Center Day for customers, showcasing our data center in Allen, Texas. Held on September 30th, the event focused on our Application Centric Infrastructure (ACI) journey.

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