Expert: Richard Howells, Experian
Facilitator: Rod Bryson, Capgemini
Data is disrupting distribution and will continue to do so increasingly in future. Consumers were becoming increasingly data savvy with future legislation empowering customers like never before around the control and value of their personal data and how a company can use it. Customer consent being a significant trigger point for customers to allow their data to be used and power to control who uses it. Likewise for companies having customer consent to use data will be pivotal to their future success and ability to commercially use data within their business and ultimately to drive revenue in the future. Those companies who can aggregate and control data such as google and amazon are in a powerful position and companies within the wealth space should think about how they can leverage the power of the data they already hold with their customers. Due to the nature of a wealth advisors work they are in a very strong position potentially given the quality of volume of financial and personal data they hold on their clients. Those companies whether wealth or non-wealth who can show consumers they can be trusted with their data or can show added value of the data they are holding have the potential to win their consumers trust. The challenge for companies is that with data legislative freedoms it means that a small number of companies who provide consumers with value around their data will mean that consumers may choose to use fewer companies than they do today but deepen their relationship with those few who provide that extra value. This is a significant risk and challenge if you are not the company to capitalise on building those stronger and deeper relationships to overcome. Advisers at this stage remain in a potentially strong position for the time being but this may change if they don’t respond to the challenges ahead. Ultimately consumers hold the power for use of data and loyalty is reducing.
Based on this, advisory firms should think about four key things:
- Do they know the quality of the data they hold?
- Have they undertaken a review?
- Do they have data consent strategy to make sure they can use their customer data in a way they want to?
- What mechanisms do they have to digitally engage with customers in the future?
The group agreed with the view that data would be incredibly important and some firms had already started appreciating the importance of data but all agreed more work would be needed. In addition it was felt the nature of advisory businesses will have to change to evolve with the need to hire more people within their businesses with key digital and data skills if they want to leverage opportunities both from existing customers but also as the transition of wealth evolves across generations.
It was felt at this stage companies had begun work but would increase this significantly the easier first steps around understanding data quality and seeking data consent had started but the evolution of how they used data the wealth market would need accelerate in the future if they wanted to retain and build relationships in the future.
All felt data was a threat and an opportunity and as the technology and the market evolved successful wealth businesses would need to adapt accordingly and not be left behind.