AI in Wealth Management: Why Well-Structured Data Matters

Generative AI is poised to transform the wealthtech industry with unprecedented opportunities for innovation and efficiency. The technology has the potential to deliver personalized investment strategies, optimize portfolios, and supercharge client satisfaction—all at scale and with greater efficiency.

As wealthtechs are innovating, they can leverage AI in developing next-gen advisortech that can shift the balance of an advisor’s time toward more quality time with clients and prospects. AI could help to make that happen through:

• More personalized investment strategies. Generative AI can analyze vast amounts of data to create tailored investment strategies for individual clients—potentially saving many hours of advisors’ time.

• Enhanced client service. AI-powered chatbots and virtual assistants can provide 24/7 customer support, allowing wealth managers to focus on more complex client needs.
• Ongoing portfolio optimization. Generative AI can continuously monitor and adjust investment portfolios to maximize returns and minimize risks.

To fully leverage AI's transformative potential, platforms must critically evaluate and realign their resource allocation. This isn’t just an adjustment—it’s a fundamental shift that involves redirecting focus and capital from traditional areas to those that support AI-driven growth. Platforms should consider:

• Strategic investment and talent optimization:Investing in AI requires a careful blend of technological and human capital. Strategic decisions about internal development versus external sourcing of expertise are key to ensuring the platform is well-equipped to handle AI demands and foster innovation.
• Cost vs. ROI: Leading wealthtech platforms are increasingly turning to the strategic outsourcing of non-essential operations to streamline expenses and bolster AI investments. This shift isn’t just about cost savings—it's about reallocating resources to prioritize AI development, which accelerates technological capabilities and boosts ROI. The most forward-thinking firms reinvest these efficiencies to drive innovation and establish a dominant market position.

The possibilities of AI in wealthtech are massive. But its success fundamentally hinges on the quality and accessibility of the data.

Financial data is notoriously “dirty” and unstructured, making the task of training data sets extremely time-consuming. Data scientists report spending up to 80% of their time cleansing the data and just 20% of their time actually doing the useful, actionable work on top of the data.

This is where specialized data providers play a critical role. They eliminate the bulk of the operational overhead and costs associated with data acquisition and management by providing:

• Clean, accurate data—ensuring that AI models can produce accurate and reliable outputs. The old adage "garbage in, garbage out" rings especially true here. To produce reliable outputs, AI models need high-quality data.
• Access to all the right data sources. Another data challenge is the fragmented wealthtech landscape. Building connections to the myriad of available data sources can be incredibly time-consuming—and a massive drain on internal resources. A dedicated wealth data network that has spent over 20 years building out connections with financial data sources can make this process fast and easy.

The ByAllAccounts Data Network can make all the difference. ByAllAccounts delivers cleansed, normalized, structured data from thousands of potential sources. We offer a fast track to the high-quality data you need, without the headache of operational overhead and costs associated with data acquisition and ongoing management.

ByAllAccounts offers fast, seamless, and reliable access to financial data, easily connecting wealthtech platforms, wealth management firms, custodians, and financial data providers through a single, secure gateway. As the only aggregator providing permissioned aggregation at every level, we eliminate the need for multiple data integrations, streamlining the data exchange process.

Here's what you get:

• Radical simplification: With just one integration, you gain access to more than 15,000 data sources; nearly 200 custodial feeds; 70+ redistribution platforms; and 50+ wealthtech platforms. It's a one-stop shop for data consumers and providers alike, streamlining your data acquisition and management efforts. This comprehensive access ensures that you have all the critical data at your fingertips, without the overhead of building and maintaining these connections yourself.
• Consistency guaranteed: No matter the source, we normalize and enrich the data into a uniform format tailored to your specific needs. This ensures seamless compatibility and easy integration with your systems, providing you with reliable and consistent data.
• Valuable Morningstar insights: We use Morningstar Security Master to append our data with the Morningstar ID. That offers a fast, easy way to connect this data to the incredibly valuable ecosystem of Morningstar data and insights.
• Faster time to market: By cutting down the time needed for data integration and preparation, we accelerate your time to market by months, allowing you to stay ahead of the competition.

The end result? Wealthtech platforms and  wealth management firms can efficiently get the most out of AI, allowing them to:

• Confidently use and share consistent, accurate data within their data lake
• Spend more time serving current clients and prospecting for new ones
• Increase efficiencies and cut costs
• Focus on their business—not the data

ByAllAccounts makes data work for you—not the other way around. Our network delivers the data you need, when you need it, and in the format that best suits your business. This way, you can focus on what truly matters: delivering exceptional service and driving growth.

Find out more about the ByAllAccounts Data Network. Download our guide, or contact the ByAllAccounts sales team to learn more or request a demo.