There really is an art (and a Skience, of course!) to proper enterprise data management, especially in this age of digital transformation in the financial services field. And if you put bad data in or mismanage the data, you are going to get dirty, useless data out of your systems.
So how do you keep track of all of that data, and, most importantly, keep it clean and accurate so that you can trust it to make important decisions?
Let’s start with a look at the three pillars of data management and the best practices when it comes to financial services enterprise data management.
The 3 Pillars of Enterprise Data Management
As an enterprise firm it can be especially hard to keep your data clean and consistent. It’s common to use outside providers for your data management needs, as your data tends to be exponentially larger and more complex than the average RIA firm. But tech vendors are often limited in what solutions they can deliver for the size and scope of your organization.
To ensure your data is where it should be, it should follow the three pillars of good data management:
- Reliability: To start, good data management means having established processes in place to minimize, or even eliminate, errors. And that reliability is the cornerstone for the other two pillars.
- Visibility: When data management is done right, your firm will have increased visibility and so will your clients. Your advisors can more easily and quickly access the data they need to be at their best. Your leadership can have the organized and useful data you need to make important decisions. Your clients can have a simplified, easy-to-access view of their assets.
- Security: Increased visibility should not mean your data is more vulnerable. Good data management goes hand-in-hand with strong security so that sensitive firm information as well as your client’s personal and financial information is backed up and safe from data losses and breaches.
No one wants to work for or with a firm they can’t trust. Without that trust, there can easily be a constant churn of advisors and a consistent loss of clients.
But when you have clean, reliable, and safe data, advisors can have confidence in their everyday processes, strategies, and tasks, and clients can feel confident that their assets are in good hands and that you are their source of truth when it comes to their full financial health.
Enterprise Data Management Best Practices
Business decisions are really data decisions, after all, so what steps can your enterprise firm take to ensure good data management? Here are some best practices to get your started:
Create Documentation
You have to know where your data is coming from and where it’s going. You can’t rely on everyone on your team knowing what to do with data inherently; you have to spell it out. Put all rules and processes in place for how your people should store and record data.
In addition, have all data flowcharts mapped out so that they can be referenced. You can even have the more detailed flowcharts for training purposes and then some one-page quick reference guides that everyone can keep on their desk space for easy access.
Boring, complicated documentation is more likely to be ignored. Make it easy-to-read, and, dare we say, fun!
Create a Compliant Culture
The data IT folks or your compliance team can’t be the only one following the rules and processes you now have in place. It has to be a true team effort.
Good data management means training, empowering, and then trusting your entire workforce to follow the documentation. Be sure to spot-check to verify compliance is happening, and don’t be afraid to enforce the rules that have been outlined if need be. You have to be confident that the processes are being followed.
Your CRM is only as good as the data that flows into it. If people don’t record data, it’s useless to you. And remember: bad data in means dirty data out.
Create a Centralized Technology Approach to Data Management
Just because your team is united in following processes and rules for data management doesn’t mean you have a centralized approach. You need to build a solid data management foundation throughout your entire tech stack as well.
You simply can’t risk having unaggregated, unintegrated data disrupting your data management. Data in multiple places is confusing, more prone to error, and makes analysis much more difficult.
Instead, you need to pick a tech solution that will unify data records and act as the single source of truth. Have one system of record where you can do all of your business intelligence and reporting allows you to make those important business decisions.
Learn More about Data Management
You aren’t alone in simplifying your enterprise data management. Skience’s enhanced data consolidation and reconciliation (Data CaR) solution offers enterprise firms a turnkey system of record to propel their digital transformation and drive growth.
Download our latest white paper to understand the full scope of how firms are succeeding with a centralized approach to data management or book a demo with us today!