According to Netwealth’s Advicetech 2025: Turning data into growth, most advice firms are repeating client data across 20-plus customer relationship management (CRM) platforms, planning, commission, account and marketing tools.
As highlighted in the report, this can lead to data re-entry, mismatches and incomplete reporting, leading to inefficiencies across businesses that are relying on data re-entry.
Netwealth highlighted through its research that firms that look to centralise and connect these disparate data sources are cutting these inefficiencies. Focusing on firms that have integrated technology across their processes (called “AdviceTech Stars” in the report), Netwealth stated that 63 per cent of high-performing firms are using a connected data backbone.
“From our research we are seeing several methods being adopted by firms to integrate their systems and data,” the report said.
“Many are using built‑in data feeds from/to their core systems. These are largely out of the box and require limited development effort.”
Netwealth stated as an example that 44 per cent of their AdviceTech Stars are using a CRM platform to connect or integrate multiple systems, while 24 per cent use their financial planning software as an integrator.
“Stars are also leading the charge toward more sophisticated integration infrastructure,” Netwealth said.
“They are increasingly adopting data warehouse technologies like Microsoft Azure (which 20 per cent of Stars use), and Netwealth Unify (previously known as Xeppo, which 9 per cent of Stars use).”
Netwealth also suggested that advisers should look at “data warehouses” as a necessary investment for firms looking to integrate and consolidate their systems.
“Modern, purpose-built data integration technologies consolidate data from disparate databases and systems, making a single source of truth, in a cloud-based and secure environment,” it said.
Netwealth explained that these “warehouses” can be built on open architecture via out-of-box connectors, direct feeds and public application programming interfaces (API).
“They look to orchestrate and manage data securely, then store and normalise (match and merge) data for consistency, from multiple sources,” the report said.
“Advanced matching, nightly discrepancy checks, and exception workflows with audit trails keep data quality high.”
This creates a “synchronisation” that allows for every system to access the same facts. The report further highlighted that because of the public nature of the APIs used, data can be shared securely between integrators and vendors who can “build custom workflows and enhance client experiences”.
“Data warehouses may unlock great potential for your business, including better insights for reporting, fewer errors, stronger risk management and the foundations to apply AI for insight and automation,” the report added.
