‘Swiss cheese’ CRMs hurting advice firms, says leading wealthtech

Advice firms’ critical data processing and management systems, including customer relationship management (CRM) platforms, in many cases resemble ‘Swiss cheese’ – filled with holes and inefficiencies – that create significant operational challenges for their advisers, argues Padua Solutions co-founder and co-chief executive Matthew Esler.

According to Esler, one of the most prominent voices in Australia’s wealthtech sector, advisers must too often deal with incomplete datasets that miss “critical details”. These gaps not only affect day-to-day client management, but are also likely to derail a firm’s efforts to personalise and create more holistic adviser services.

He urges advice firms to prioritise investment in data management processes, ensuring comprehensive data collection and regular updates through reviews – or diagnostics – of CRM systems.

“Integrating the CRM with data validation sources can also help create a holistic view of the client’s financial situation,” Esler said.

“By conducting a CRM diagnostic, for example, firms can identify and manage data gaps across their client base. A comprehensive understanding of the client’s existing position is essential for providing quality advice.”

For Esler, while data is widely seen as the ‘new oil’ of the digital economy, “its true value can only be extracted by expert data management”.

“Data-driven decision-making is transforming investment strategies and platform choices in financial advice firms. By identifying and bridging data gaps and leveraging data insights, advisers can make more informed and effective decisions, maximising value for their clients.

He added: “Advisers can harness the power of data to transform their advice firms and licensees to deliver superior outcomes.”

The provision of personalised advice – that is, “tailoring recommendations based on the client’s circumstances and preferences” – will also depend on clean and readily extractable datasets.

“[Personalisation] can be achieved by using data analytics to identify client-specific needs, goals, and risk tolerance.”

He added: “Personalised advice not only improves the relevance of the recommendations but also strengthens client relationships and trust”.

“Advisers can also leverage data to enhance engagement with their clients. This can be done by providing clients with regular updates, insights, and reports based on their data.”

Esler underlined the value of, for example, data visualisation tools in presenting “complex information in an easy-to-understand format, helping clients make informed decisions”.

Additionally, he said, interactive tools and platforms that enable clients to explore their data and scenarios can increase their engagement and satisfaction.

Esler also highlighted Padua’s dedicated ‘Research Manager’ tool – a comprehensive database of over 900 platforms and 25,000 investments.

“We use data validation and verification processes to ensure the accuracy and relevance of this research for our adviser network.

“This enables advisers to evaluate and recommend platforms and investment strategies based on a wide range of features and benefits tailored to their clients’ needs,” Esler said.