A quarter of RIAs are poised to upgrade or revamp approaches to client data. To provide holistic "household"-style wealth-management services, advisors need to collate a broad range of data and present them in coherent fashion. But more than a quarter of advisors who distribute products from multiple providers are unhappy with their present approach to data consolidation, according to a new study from the Aite Group, a Boston-based business consultancy.

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The report outlines the concept of holistic wealth management, discusses the requirements for consolidated data, and provides a partial catalogue of data-consolidation vendors. It also presents the findings of a survey of registered investment advisors, focusing on how, why and to what extent advisors employ various approaches to data consolidation.

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"An advisor who has the ability to look beyond the product level and discuss client matters on a holistic scale will be able to become a trusted advisor to the client, which ultimately will lead to an increased wallet share," says Alois Pirker, a senior analyst with Aite and author of the report Holistic Wealth Management: The Data Consolidation Challenge. "This holistic wealth-management approach, however, will remain a mere vision unless the advisor receives consolidated client data that is up-to-date and of high quality."

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In sum, given the number of advisory firms looking to revamp these approaches, the Aite report points to significant opportunities for data-consolidation service providers. -FWR

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