Technology
EXCLUSIVE: Wealth Firms Need To Be Smarter About Big Data

Far too many wealth managers and financial services firms aren't spending money wisely on Big Data and in some cases, wasting it. A report by a firm tracking such issues recommends changes.
Financial service firms trying to exploit use of “Big Data” have
too often spent money that hasn’t produced results or even ended
in failure, suggesting too many of them aren’t asking why they
pursue such ventures in the first place, according to MyPrivateBanking, the
Switzerland-based research firm, reports.
There has been a flurry of interest around Big Data, a term
defined, according to a following formulation, as “Big data is
high volume, high velocity, and/or high variety information
assets that require new forms of processing to enable enhanced
decision making, insight discovery and process optimization”.
“Too many financial actors focus on the `how’ of implementing Big
Data projects rather than the `why’ and this is a sure way to set
Big Data projects up for failure,” Onawa Lacewell, senior analyst
at MyPrivateBanking, said in the report. “Successful projects
must have a needs-based focus, with the primary business
objective always at the centre of the implementation process.
With this approach Big Data offers tremendous opportunities to
serve existing clients better, acquire new ones and at the same
time save costs and solve support compliance,” Lacewell
continued.
Big Data is one of those features of digital life that are
shaking up how wealth management firms, and the financial
services sphere more broadly, operates. The ability to use huge
data sources to chart client behaviour and prospect for new
business are some of the prizes in view.
Change of course
The research firm said wealth managers need to change how they
put Big Data projects into use. Instead of finding the
vendor/solutions first, they must work out what their
organisations actually need, what data best meets those needs and
then choose the suitable infrastructure.
The report said Big Data solutions “will always require a
tailor-made approach” linked to needs, although there are general
rules of thumb that apply, such as always keeping the end-client
in mind and be sure that data is absolutely necessary.
The report is based on profiles of 30 vendors catering to the Big
Data needs of wealth managers. The report is called Big Data
For Wealth Management – A Practical Guide For Successful
Implementation.