Data Warehouses: From Sci-Fi Dream to Wealth-Management Reality

Henry Zelikovsky and Craig IskowitzAdvisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

By democratizing access to data, wealth management firms can future-proof, foster innovation, and develop new services and solutions that meet the evolving needs of their clients.

In Bob Veres’ recent article, The Trends That Will Matter to Advisors in 2024, this respected industry observer, speaker and author drew on the 2024 T3/Inside Information Advisor Software Survey to position sophisticated data warehouses as a revolutionary force in wealthtech – and rightly so.

Veres made predictions for a wide range of topics including the consequences of the PE-driven RIA M&A trend, specialized planning apps, the impact of AI and the shift from advice and consulting to personal coaching.

The area that we’re discussing in this article is Veres’ predictions about data warehouses and portable custodial relationships. He pointed out, correctly, that most advisory firms suffer from annoying integration issues among best-of-breed software solutions. Each application connects directly to another in a disorganized patchwork rather than connecting to a centralized data warehouse to increase efficiency.

Veres wrote that we are on the verge of an explosion of data warehouse solutions being deployed by advisory firms to solve these critical infrastructure issues.