With open financial data continuing to accelerate, the wealth management ecosystem is evolving, enabling access to everyone—the customer, advisor, FinTech providers, and financial institutions. When the best, most intuitive technology implements, everyone wins. Customers benefit from more access and visibility into how their money is managed and advisors have more technology choices through third-party integrations.

Previously, financial institutions had complete control of customer data, creating barriers to transferring data or limiting customer data when they choose to leave the institution. Now, the customer can choose who they do business with, whether it is an institution or an advisor, thanks to open data. 

The shift toward digital has accelerated choice and open data for flexibility within the wealth management industry. According to McKinsey, open financial data could put powerful non-bank FinTech companies in a stronger position to become wealth management-services players. The shift in power includes using data to create new products and services leading to amassing customer attention and controlling AUM. Sharing financial data in a manner requiring little effort or manipulation improves risk assessment, work flows, client serving, and all processes of wealth management, even mitigating cybersecurity risks and fraud.

Open financial data create economic value across a wide range of interactions between consumers and financial institutions.”—Financial data unbound: The value of open data for individuals and institutions, McKinsey. 

Open data enables wealth managers to connect all of their system tools, including trading and rebalancing, into one portfolio management:

  • Efficiency- Costs reduce and the software scales as your business grows
  • Seamless Integrations- Primary custodians, as well as service and analytics partners, remain intact
  • Customization- You have control over what is important to you and your clients 
  • Flexibility- You can retain or delete as much of the portfolio management process you want when you switch clearinghouses.
  • Fine-Tuned Securities Management- All types of securities, mutual funds, stocks, ETF’s, fixed income, hedge funds, and currencies are supported—including crypto.

At AdvisorPeak, we believe that open data will continue benefit the wealth management industry by bringing opportunities to clients, advisors, and institutions through well-designed technology solutions, thus eliminating asymmetrical control.