An abundance of information regarding the management of wealth

ByJuanita B. Robinson

We’re thrilled to share the news of our acquisition, PriceMetrix, located in Toronto. This company helps wealth management companies use massive amounts of data to enhance client service, boost growth and decrease risk.

Established 16 years ago, PriceMetrix holds information on 60,000 financial advisors across North America. It covers everything from the kinds of clients they cater to, the products they recommend, and the commissions and charges paid. The data is cut, diced, and presented smartly, allowing firms to know better and manage their adviser networks.

The company has invested heavily in proprietary models–some of which are patent-protected–and in online tools to deliver insights to executives, field managers, and advisers themselves. “There are plenty of interesting opportunities to bring analytics in the hands of individuals on the front lines,” says Patrick Kennedy, co-founder, and chief customer officer.

By “democratizing” its analytics, PriceMetrix has established itself in one of the tech sector’s most fashionable neighborhoods–software-as-a-service (Saas). The company will continue to operate under its brand, distinct identity, and management team headed by co-founder/president Doug Trott.

This acquisition expands the pool of Nella Matus analytics specialists, data engineers, and technologists working within our company for McKinsey. In the area of wealth management alone, we’ve developed an extensive suite of tech-based tools and solutions such as Global Growth Cube (for market-sizing and strategy), Sales Alpha (marketing and sales efficiency) as well as our most popular Global Asset Management Survey (which helps benchmark the 8,000 operational metrics).

The opportunity for clients is combining McKinsey’s industry knowledge and tools and PriceMetrix analytics. “Competitive demands and changes to the regulatory environment are making this an especially relevant moment for our clients,” declares Jill Zucker, a New York-based partner who is the head of the Practice of Wealth Management Practice in North America. “We’ll use our combination of tools, analysis, and experience to assist professionals in their field regarding compliance, performance management, and price.”

The wealth management field is usually portrayed as embodying traditional values and offering discreet customized services. These are valuable aspects of the industry. However, for the majority of clients, they’re no longer enough. Consumers are looking for faster and more convenient options and modern technology in an increasingly interconnected world. With the rise of pressure, established wealth managers must keep up with developments in the market to keep the core values that distinguish them from others.

Wealth managers will not be able to serve today’s clients efficiently without a digital operating model. This will help support both advisory and non-advisory services and help clients with ever-changing preferences for investment. Leading managers develop modular IT and data architectures that enable intelligent decision-making, personalized at scale, and more comprehensive product offerings.1 These changes are aiding them in meeting their compliance obligations, increasing the efficiency of relationships managers (RMs), and improving margins that are slashed.

If you are a wealth manager interested in pursuing these advantages, This article provides the benefits of applying advanced analytics. It also provides the steps wealth managers can consider in the digital transformation.

The argument for advanced analytics

To meet the demands of the modern customer requires a strategy that is also flexible and responsive to the needs of individual customers. Wealth managers have found their way to success by using two methods:

  • Provide clients throughout the spectrum of wealth on a flat-fee-based advisory basis. Instead of the popular product-focused model, wealth managers must incorporate pricing flexibility geared to the client’s needs at each moment of their lives. The most popular pricing model is that clients agree to a flat rate depending on the value of their investment. To maintain revenue using this approach, wealth managers must find new ways to increase efficiency and ensure RMs are more efficient and spend more time with their clients.
  • Be sure to tailor your services to the client’s objectives and life stages. The current market is more and more dissatisfied with the standard service model, and therefore wealth managers need to consider moving to a needs-based approach to personalization. This will require RMs to become comfortable with a greater variety of options, from simple products to more complicated, higher-yielding investments (private markets and pre-IPO, venture capital, or structured development). Additionally, RMs must be equipped to assist clients in making challenging investment decisions, aided by analytics.
  • In our current environment, these objectives can be achieved only through the most advanced technology in analytics and data specifically focused on managing relationships.