Taken from this LinkedIn post by Dean Casey:
Wealth managers, it’s time to face a harsh reality. Your businesses are built on data. But, have you ever stopped to consider:
Who really owns your data?
What laws apply to it?
Where is it stored? If in “the cloud”, does that mean another country. What are the applicable laws there?
If you’re relying on third-party data vendors to aggregate, cleanse, and manage your client’s investment information, you might not be as in control as you think.
This reliance on could be putting your business at risk. Review your data management and storage policies immediately!
Here’s why this is crucial:
🔒 Data Ownership: Is your data really yours? When vendors control access, the line between your ownership and their management blurs, especially when they charge you for accessing and exporting your own data.
⚖️ Compliance & Regulatory Challenges: Navigating the complexities of compliance and regulations is already tough. There are so many to consider – GDPR,GLBA,FICA, POPI, CPA, etc . Now add a cloud-based environment into the mix. Where is your data actually located? What jurisdiction? Other countries may automatically apply their laws too!
🤝 Vendor Dependency: Increased reliance on data vendors for your admin and operations means you’re at their mercy. Their roadmap becomes your roadmap. Changing vendors becomes impossible without about a major disruption to your business.
💡 Data as an Asset: Your data is more than just a compliance tool—it’s a strategic asset. Can you build your own dynamic digital dashboards with all your data points. Better access and control over your data enable more informed decision-making and improved client service.
🌟 AI: Data is the rocket fuel of AI. Do you have the ability to pivot your business and embrace AI trends?
🛠 Solutions:
Don’t leave your data in someone else’s hands. There are lots of options to resolve this. Two quick and simple options that you can action today are:
– ensure you regularly export your clean, enhanced data from your vendor and store it under your control
– chat to your vendor and make sure it is available for you to on demand with a pre-agreed data structure.
Take charge of your data, your business depends on it.