Improving Decision-Making with Accurate Wealth Data Insights

Your plans and strategies are only as good as your analytical skills and the information sets you to work on. Therefore, to improve decision-making, you need to ensure that you work on accurate data. In this article, we look at this relationship much more closely, showcasing how you can boost data accuracy and explaining why you have to do it in more detail. We invite you to read on!

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The Role of Data Accuracy

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Data accuracy determines how closely your data reflects real-world situations and objects. As such, it plays a pivotal role in the process of improving your decision-making.

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Every fluctuation in the information you collect might determine the final outcome: the data you will base your decision on and, thus, the conclusions. Even a small error or miscalculation in financial data may lead you to exceed your client’s risk tolerance. Not to mention more considerable inaccuracies.

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In the end, data accuracy is critical for:

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• determining the right strategies and executing them in the most optimal way,
• managing risk based on historical data and unstructured feeds from the web,
• personalizing financial services, to build customer satisfaction and loyalty,
• ensuring compliance with the regulations in a given area, country, or market.
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How to Improve Decision-Making by Boosting Data Accuracy

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From the above, it’s clear that increasing data accuracy can help you improve your decision-making processes significantly. Yet, how do you do it?

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This is a multi-step process that involves investigating your workflows, introducing automation to reduce human errors, and creating efficient getaways for data integration. Here’s a detailed overview of the steps you need to take.

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Cleansing, Standardizing and Integrating Your Data

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The first step to improving your decision-making process involves preparing your data sets. Here, you have to take the following actions:

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• cleansing—removing unnecessary information from your data to limit noise and optimize for your data processing capacities,
• standardizing—creating a set of standards on how your data is organized to make automation and extracting information simpler,
• integrating—merging your data from multiple sources into a single interface and engine, which enables you to always work on complete information.

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This is why, as a part of WealthArc onboarding, we work on preparing and integrating portfolio data into our wealth management platform. As a result, when you start using it, you can rest assured that you have all the correct information updated in real time—there’s no risk of you working on inaccurate data anymore.

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Defining Your Data Workflows

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Secondly, you need to think about the ways you utilize data in your organization. What are the workflows? Do they have any bottlenecks? Is it possible to damage data integrity or accuracy as a part of any of them? This analysis is crucial for finding the areas that you want to automate.

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For instance, if your wealth management platform cannot calculate the time-weighted return and you have to do it on your own in a Microsoft Excel spreadsheet, you open yourself to a vulnerability. You can mistype the data when entering it into the spreadsheet and calculate the wrong results.

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This is why you need to evaluate your workflows, define them, and consider how to tighten them up to prevent such situations from happening.

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Implement Automation

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Thirdly, you need to start automating your systems. Opt for innovative tech, like AI-powered document processing engines (which can input unstructured data automatically, with little human oversight), and make sure you can extract data and exchange it between tools without the need to copy and paste the information. Many such features are available in already existing wealth management solutions for banks, family offices, and private investors.

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Utilize Tools for Data Analytics

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Finally, you have to deploy tools (like ML-based engines) that will help you analyze your vast quantities of data in the blink of an eye. Such smart solutions might even extract predictive insights for you and visualize the data to make it easily digestible. So, you should opt for them to fully improve your decision-making!

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Conclusion

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What do you need to do to boost your decision-making? Increase the accuracy of your data. While it might not be the only solution, without correct, precise information, you won’t be able to make data-driven decisions that will propel your business forward. So, invest in technology that can help you bolster your data accuracy (such as our WealthArc platform) and embrace the power of digitized, easily accessible information!

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You might also read: Wealth Management Software as a Service - Why Is It Better than Developing Your Own Solutions?

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