Wealth Management’s Shift: From System-First to Data-First

February 17, 2025

The wealth management industry is undergoing a fundamental shift: firms are moving away from a system-first approach (choosing technology platforms first and adapting data around them) to a data-first strategy (where data is structured and optimized first, allowing flexible system choices).

Why does this shift matter? Because data is the true asset—not the systems that process it.

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The Impact of a Data-First Approach

For small & medium-sized firms:
A data-first strategy enables firms to seamlessly integrate the best-in-class tools without vendor lock-in, allowing for cost-effective scalability. A mid-sized asset manager, for example, can use independent data layers to connect CRM, portfolio management, and reporting tools without being tied to a single system.
For enterprise firms:
Standardized, high-quality data fuels AI-driven analytics, personalized client engagement, and regulatory compliance. Large banks and wealth managers are now building centralized data lakes to power AI models for hyper-personalized investment advice.

Examples:

United States: Vanguard is modernizing its technology infrastructure under CEO Salim Ramji to expand into investment advice and actively managed funds. This shift focuses on data-first strategies to maintain cost leadership and enhance customer experiences.
Europe: Intesa Sanpaolo, Italy’s largest bank, is partnering with BlackRock to offer digital wealth management services in Belgium and Luxembourg. Their data-first approach enables enhanced investment offerings, supporting digital expansion in private banking.
Netherlands: Ohpen, the Dutch cloud-based core banking platform, was built from the ground up with a data-first mindset. Their platform allows financial institutions to efficiently manage savings, investment, and mortgage products by eliminating reliance on legacy systems.

How Small & Medium-Sized Firms Can Pivot to Data-First

Shifting to a data-first model doesn’t happen overnight. Here are the first three key steps:

Establish a Data Strategy
- Define what data is critical for decision-making, client engagement, and regulatory reporting.
- Break down silos between departments to create a unified data model.
Centralize & Cleanse Data
- Invest in a data warehouse or data lake to consolidate information from different sources.
- Implement data cleansing processes to ensure accuracy and consistency.
Enable Interoperability
- Choose open API-driven tools that can integrate seamlessly with different applications.
- Avoid vendor lock-in by selecting systems that allow flexible data movement.

At Pretim, a GDPR-compliant investment data platform, we have broad experience in orchestrating a data-first approach for family offices, wealth managers, and advisors. Whether you’re looking to modernize your infrastructure or optimize your data aggregation, we’re happy to discuss how this can work for you.